Additional Coverage:
- A California couple built a $500,000 ADU in their parents’ backyard when they couldn’t afford to buy a traditional house (newsbreak.com)
Newlyweds Opt for Affordable ADU over Traditional Home
Newlyweds Aislyn and Ali Benjamin chose to build an accessory dwelling unit (ADU) in their parents’ backyard instead of purchasing a traditional home. The Benjamins were unable to afford the high housing prices in their area, with the median sales price around $2 million.
What is an ADU?
ADUs are smaller housing units typically ranging from 150 to 1,200 square feet. They can generate extra income for homeowners, provide housing for family members, or serve as affordable options for first-time homeowners.
The Benjamins’ ADU
The Benjamins’ ADU is a 1,200-square-foot, three-bedroom, two-bathroom unit that cost $500,000 to build and finance. They used wedding gifts from their guests to raise funds for the project.
Benefits of ADUs
ADUs offer several advantages, including:
- Affordability compared to traditional homes
- Potential for extra income or debt reduction
- Housing options for aging parents or adult children
- Opportunity for first-time homeowners to enter the housing market
Process of Building an ADU
The Benjamins consulted with builders and chose Villa, a company that specializes in ADUs. Villa handled the permitting, building, and installation for a cost of $180,000, plus additional expenses. The entire process, from design to completion, took about 11 months.
Financing the ADU
The Benjamins made a $100,000 down payment and received financial support from their parents, who took out a retirement loan and a HELOC on their main home. The couple also financed $50,000 for additional expenses.
Living in an ADU
Despite misconceptions, the Benjamins’ ADU is a luxurious and spacious home. It features a kitchen with quartz countertops and an island, skylights, a deck, and a private driveway. Their monthly mortgage payment of $2,900 is significantly less than their previous rent.
The Benjamins plan to eventually move into the main house when they start a family, giving their parents the opportunity to live in the ADU and stay close to their loved ones.