Accessory Dwelling Units (also known as ADUs or granny flats) have become a significant housing trend in several of the nation’s most housing-constrained markets, including California, Oregon, Washington and Colorado. These secondary residential units, typically built on the same lot as a primary dwelling, play an important role in providing additional housing to communities that suffer from increasing unaffordability and a shortage of developable land.

When developed correctly – with a mindful approach to parking and maintaining the character of the surrounding neighborhood – ADUs are a versatile housing option that can provide additional rental income for the property owner or housing for an aging parent or family member. Additional benefits include:

Increased Housing Supply: ADUs contribute to the overall housing stock without the need for large swaths of developable land. In some California cities, ADUs now account for 20-30% of new housing units, playing a substantial role in addressing the housing shortage.

Affordability: ADUs are typically smaller units (studios and one-bedrooms) that provide a relatively affordable housing option at rents lower than those of larger apartments.

Economic and Social Benefits: ADUs can increase a property's value and create additional rental income, benefitting their owners. Socially, they support multigenerational living, allowing family members to live close by while maintaining privacy and independence.

Many states are implementing legislative changes to encourage ADU development and streamline permitting. California has been at the forefront of this movement – passing laws to speed up the approval process and reduce fees. Oregon, Washington and Colorado recently followed suit and enacted their own sets of incentives to promote the construction of ADUs.

Pathfinder has completed ten ADUs at six properties and we are currently building several more. We generally build one or two ADUs at a property and are careful to consider parking ratios and architectural character.