Tag Archives: benefits of an ADU

5 Decisions to Make Before Starting Your ADU Construction

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This entry is part 2 of 11 in the series Accessory Dwelling Unit

 

 

If you want a source of passive income and to do a community service at the same time, a rare opportunity to be sure, there’s no better option than constructing an ADU (accessory dwelling unit) on your property. This is Honolulu’s best answer to the increasingly pressing crunch for affordable housing and while there are some very specific rules, it’s a great chance for current homeowners to significantly increase the value of their property, provide a new home to family or renters in need, and enjoy the excitement of a new project literally in your backyard. However, before you start putting up timbers, there are a few important decisions you need to make.

1) Is the ADU for You, Family, or Renters?

The reason you’re building an ADU will shape every other decision you make, so you might as well start at square one. ADUs can serve a number of interesting, helpful, and profitable purposes depending on how they are used. If you (the homeowner) plan to move into the ADU and leave the main house for the family or high-dollar renters, the design should be fit to your personal needs. If the ADU is to house an overflow of family, consider their preferences and look into ohana housing instead, which has fewer regulations but isn’t as versatile if the family moves out. Finally, if you’re planning for renters, you’ll want the ADU to be as welcoming as possible for anyone who might move in.

2) Would it be better Attached or Detached from the Main House?

You may not have realized it, but ADUs can absolutely be built as an attachment to your main house. In some cases, this may be the only way to achieve the required number of parking spots or fit the second dwelling onto an oddly shaped lot. That said, attached ADUs are more ideal for the family as you’ll be living in close proximity, along with sharing a wall and possibly a door to the main house. For ADUs you plan to rent or plan to eventually be able to rent, later on, it would be better to build a detached dwelling for added privacy and personal space.

3) Are You Prepared for a Very Small Dwelling?

ADUs come with a maximum size restriction depending on the square footage of your lot, and these can be pretty darn small. If your lot is between 3,500 and 5,000 sq ft, your ADU could have a maximum size of 400 to 800 sq ft. That may be smaller than you’re imagining. With 400 sq ft, there’s usually enough room for one bedroom with a full to queen sized bed, a compact kitchen/living/dining area, and a small bathroom. Once you know how big an ADU you can build, take a walk through a few models and existing homes around the same size to really get a feel for the functional size of the home. That said, people have reported living comfortably in less than 200 sq ft.

4) Can You Convert an Existing Accessory Structure?

If you have a large shed or well-built workshop already on your property, there’s a chance that you might be able to convert this into all or part of your new ADU. For this to be a viable option, the accessory structure needs to be sturdy and capable of being upgraded to good quality living conditions. You’ll need insulation, real walls and floors, a kitchen, and a bathroom along with the necessary power, water, and possibly gas connections. It may just be easier to build a new structure, perhaps even making room by knocking down the old shed rather than repurposing it.

5) Do You Want to Go “Off-Grid”?

One of the really nifty options for a brand new ADU is the ability to go ‘off-grid’. What this means for most is solar panels. Big ones, with enough battery power to ensure that the lights and water heater work at night as well. You can even install a rainwater collection and filtering system but we suggest keeping the water pipes even if your ADU is power independent. An off-grid ADU will cost a little more to make but for the rest of its life will add nothing to the power bill. If you’ve got the money to invest and love the idea of renewable energy, this could be a great ADU choice that will, incidentally, also raise its value as a rental property. While you’re at it, throw some solar on the main house, too.

Here at Owner Built Designs, we specialize in making your Honolulu ADU dream a reality. For more helpful tips on designing the perfect ADU for you, your family, and your property contact us today!

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Why Are ADUs So Important in Hawaii?

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This entry is part 7 of 11 in the series Accessory Dwelling Unit

Housing affordability has long been an issue on Oahu. The challenge remains, according to the 2017 Housing Affordability Table compiled by the Joint Center for Housing Studies at Harvard University. According to the table, urban Honolulu is the 54th largest metro area in the country but has the most expensive single-family homes.

Honolulu Leads Top 100 Cities

In fact, only 19.6 percent of all households can afford the housing costs associated with the median selling price of $707,100. And, just 9.0 percent of renter households could afford to purchase a home at the median selling price. That is the lowest percentage of any of America’s top 100 metropolitan markets. Only greater Los Angeles and California’s Bay Area come close. Just 12.4 percent of Los Angeles renters would be able to afford the median selling price in that market. In the Bay Area, including San Francisco and Oakland, 13.6 percent of renters have the income to purchase a home at the median selling price.

Recession’s Impact

Following the recession of 2008, new construction dropped precipitously in Hawaii. One year later, only 6,000 housing units (including condos and single-family units) were sold in Honolulu County. Since then, sales have rebounded, but they are still nowhere near the boom years of 2003-2005.

Certainly, more work remains to be done. Today’s $700,000+ median selling price of a single-family residence is more than double the median selling price recorded for 2000.

Many people who cannot afford such prices will still need housing. In a report entitled “Measuring Housing Demand in Hawaii 2015-2025,” it is estimated that Hawaii will need another 64,700 to 66,000 housing units between 2015 and 2025. At the same time, the report states, “Wages and incomes have not been growing as fast as housing prices, making it harder to afford real estate in Hawaii, especially for younger and lower-income households.”

Ohana Units Help Somewhat

In the late 1980s, the ohana unit first addressed some of the state’s affordable housing needs. However, the impact was somewhat muted because only relatives of those residing in the primary residence can occupy these units. Nonetheless, they are great for multi-generational households. Ohana units are often occupied by adult children of homeowners or seniors in the family, and they must be physically attached to the primary residence. The location is fairly flexible because they are possible in agricultural, country and residential districts, although they are prohibited in areas zoned R-3.5.

ADUs to the Rescue

In 2015, Honolulu introduced accessory dwelling units (ADUs) to further address the shortage of affordable housing. Given the statistics noted above, the future of accessory dwelling units (ADUs) appears bright. ADUs offer local governments some of the advantages of duplexes, but at a lower cost. Both types of dwellings increase housing density without putting an undue strain on infrastructures like sewer, water, and roads. In particular, these units tend to spread out across metro areas like Honolulu. And, governments can refuse an ADUpermit if the construction will unduly strain existing infrastructure.

ADUs are not just a Hawaiian phenomenon. According to Hawaii Appleseed, they have been used to address shortages of affordable housing in across the continental U.S. as well, from Lexington, Massachusetts on the East Coast to Portland, Oregon, and Santa Cruz, California, on the West Coast.

Qualifying homeowners renting out ADUs find they can generate a new and valuable revenue stream. ADUs can increase the overall value of the property, aiding asset accumulation in the process. If there is eventually a decision to sell the property, the seller may find that some prospective buyers value the ADU for the same reasons.

Owner Built Design LLC is your source for residential design, engineering and permit processing on the island of Oahu. I bring three decades of local experience to my work on behalf of homeowners and owner-builders. To better determine if the construction of an ADUis right for you, please contact me today.

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