ADU
Before going full steam ahead with building an accessory dwelling unit in Massachusetts, there’s one question many homeowners ask: Do ADUs add value to your home? After all, if you’re building one on a property that isn’t necessarily your ‘forever’ home, it makes sense that you’ll want to avoid overcapitalizing.
The answer is, yes, accessory dwelling units in Massachusetts do add value to your home, but context matters, and some elements drive more value than others.
How Much Value Do Accessory Dwelling Units Add in Massachusetts?
The general consensus is that adding an ADU to your property in Massachusetts has the potential to boost its value by 25% to over 50%, depending on where it’s located, its size, and whether it’s attached or detached.
While that’s good news in terms of resale, adding an ADU to your property also delivers advantages in terms of rental income. There is generally increased demand for homes that offer multi-generational living options, which can benefit you when calculating your monthly rental rate. It may not be long until you’ve recouped your construction costs.
What Drives the Value Of An ADU?
If you need further convincing that building an ADU in Massachusetts is worthwhile, the following factors contribute to their value:
Rental Income Potential
Rarely does a home generate income for its owners when they’re living in it. That’s where an ADU bucks the trend. Whether it’s attached or detached, a potential purchaser can see a legal, rentable ADU as a meaningful form of cash flow.
Moreover, when a property is in a strong area, such as near a university or employment center, adding an ADU can make buyers more willing to pay a premium.
Legal and Permitted Status
Many home buyers believe they’ve found what they consider their ‘dream home,’ and are then devastated to learn some parts of it aren’t permitted. It can be beyond frustrating!
As a result, building an accessory dwelling unit in Massachusetts through a trusted construction company that takes care of all permits can make your home hot property. Prospective purchasers can be relieved to learn that they haven’t just stumbled on yet another unpermitted ‘bonus space.’
Market Demand and Location
The Massachusetts housing market is highly competitive. Everyday buyers are being stopped in their tracks by severe inventory shortages, record-low affordability, and high prices. Therefore, some buyers are getting creative and choosing to buy with multiple family members or opting for properties that can make them money to offset their high mortgage.
A home with an ADU can tick both of those boxes in a challenging buyer’s market. If you purchase a home with multiple family members or friends, an ADU can provide additional living space for an additional owner-occupant. Alternatively, if a buyer has a high mortgage due to the area’s high average sale price, income from an ADU can bolster their bank balance.
Design and Quality
Not all ‘bonus spaces’ or ADUs will add more value. Some aren’t well designed, permitted, or built.
However, a well-designed, integrated ADU that’s aesthetically pleasing, functional, and sized right will tick all the right boxes for a prospective purchaser. In fact, renters and buyers alike are generally willing to pay more for an ADU on a property that has a functional kitchen and full bathroom, a separate entrance, good insulation, heating and cooling, and durable finishes.
The Type of ADU
When you meet with your local design-build ADU contractor in Massachusetts and discuss design options, you’ll quickly learn just how many there are. The option you choose depends on how much spare space you have, your preferences, and your budget. These factors also determine resale value at the other end.
An attached or garage conversion that uses existing utilities and foundations is typically the most cost-effective to build. Detached units require new foundations, site work, and utility connections, but they normally offer more value and privacy.
What to Consider When Building An ADU in Massachusetts
You now know that an ADU will add value to your home in Massachusetts, but what should you consider when planning to build one on your property? The following factors are essential:
- ADU laws in Massachusetts: Statewide legislation allows many ADUs by right in single-family zoning districts, but the maximum size is 900 square feet or smaller, and they remain subject to building code, septic, and safety compliance requirements.
- The type of ADU you want to build: Choose from attached ADU, an interior conversion (such as a basement or attic), or a detached ADU.
- Septic vs. sewer capacity: Septic systems are sized by bedroom count, so an ADU may require a septic system upgrade if your property is on septic.
- Construction company: Research construction companies in Massachusetts with experience building ADUs. The more experience they have, the more streamlined the process is.
Plan ADU Construction in Massachusetts with Republic Building Contractors
Building an accessory dwelling unit on your property can be the right decision for multigenerational living, property value, and rental income. If you’re ready to learn more about your options, schedule a no-obligation consultation with Republic Building Contractors.
We are proud to be trusted design-build ADU contractors in Massachusetts, striving to provide a stress-free ADU-building process for all customers.
