Should You Consider Adding an ADU to Your New Home Design?

Building a new home is about creating a space perfectly adjusted to your current and future needs. But what if you could design a home that not only accommodates your family but also offers adaptable living arrangements for guests, aging parents, or even generates extra income?

An ADU (Accessory Dwelling Unit) as a separate rental or in-law suite, integrated into your design, might just be the brilliant idea you haven’t yet explored. Keep reading to uncover how this smart feature can ease your mortgage and provide invaluable flexibility for years to come.

WHY FLEXIBLE LIVING SPACES ARE TRENDING IN MODERN HOME DESIGN

Today’s homeowners are thinking ahead—and it’s changing the way homes are being designed. Flexibility is no longer a bonus; it’s a must-have.

• Multigenerational living is rising, with more families choosing to live together under one roof while maintaining personal space. Whether it’s elderly parents, returning adult children, or long-term guests, having a private suite offers comfort for all.
• Short-term rental platforms like Airbnb have fueled the growing demand for self-contained spaces within homes. More homeowners are discovering the power of passive income by renting out a room or a portion of their home.
• And let’s face it: homes are expensive. People are building smarter by designing spaces that are multifunctional, maybe even deliver ROI, and adjust with them over time.
  

DESIGNING FOR FAMILY WITHOUT SACRIFICING PRIVACY

One of the biggest benefits of a built-in suite is how it supports closeness without overcrowding. According to the Pew Research Center, the number of people living in multigenerational households quadrupled between 1971 and 2021—while the number of people in other living arrangements grew by less than half that rate. As of 2021, 18 percent of the U.S. population lived in a multigenerational household.

A private space for aging parents, a returning college student, or even a live-in caregiver allows your family to stay connected, while each person retains their independence and dignity.
These suites promote peace of mind, enhance overall quality of life, and offer valuable autonomy for everyone involved. With thoughtful design, shared living doesn’t have to mean sharing everything.

THE POWER OF PASSIVE INCOME: REDUCING YOUR MORTGAGE BURDEN

Imagine your home not just as a place to live, but also as a source of steady income.
According to the Airbnb newsroom, the average Airbnb host in the US earned approximately $14,000 in supplemental income in 2023. In addition, this market report shows that the short-term rental market in the U.S. is experiencing continued growth and is expected to increase by an average of 10.6% per year from 2025 to 2030. Considering this, adding a rental suite to your new home design appears to be a promising investment with a variety of benefits:

• Helps offset your mortgage
• Supports everyday expenses like groceries, utilities, or childcare
• Funds travel, investments, or savings
• Provides financial flexibility in uncertain times

When this space is thoughtfully integrated into your home’s design from the start, it’s much easier to maintain privacy between you and your tenants. It also allows for better control over the layout, a harmonious exterior appearance, and enhanced sound insulation.

KEY CONSIDERATIONS FOR SMART DESIGN

Designing an ADU doesn’t always mean building a second house or even adding an extra floor. Often, creative use of existing square footage—like converting a garage or a walkout basement—can provide just the space you need. Here’s what to consider for a smart, effective design:

Separate Entrance
A dedicated entrance gives guests, renters, or family members their own way in and out—essential for privacy and autonomy. Make sure the entrance integrates seamlessly with the home’s overall aesthetic.

Depending on your lot and layout, this might be:

• A separate side door
• A private basement walkout
• An external staircase if the suite is located above ground level

Kitchenette vs. Full Kitchen
Ask yourself: Who will use this space?

• For Airbnb guests staying short term, a kitchenette with a mini-fridge, microwave, and coffee station may be all you need.
• For long-term renters or relatives and in-laws, a full kitchen could be worth the investment.

Choose appliances that are space-efficient, and consider built-ins to save square footage.

Bathroom Design
Every suite should include a private bathroom. For elderly parents, make it accessible—no steps, use walk-in showers, grab bars, and slip-resistant flooring.

If renting, choose durable, low-maintenance materials that are easy to clean and can stand up to high turnover.

Soundproofing
Good sound insulation between the main home and the ADU significantly improves quality of life for both sides.

• Use mineral wool or acoustic insulation in the walls and ceilings to absorb and block noise.
• Use solid-core doors and properly sealed windows for added sound protection.
• Avoid direct sound transfer points, such as shared ventilation ducts or plumbing runs, which can carry noise between spaces.
• If adding a balcony or terrace, consider positioning it away from the main house and backyard to ensure privacy for both spaces.

Future Flexibility
Designing an ADU doesn’t lock you into one use. Think ahead—flexibility during the design phase ensures easy adaptability for decades.
You can:

• Start with a home office or studio, and convert it to a guest suite later.
• Create a space for teens now, and adapt it for aging parents down the line.
• Rent it for income now, then reclaim it as living space when your needs shift.

FROM BLUEPRINT TO REALITY: ESSENTIAL STEPS AND CONSIDERATIONS

Zoning Laws and Regulations
Before finalizing your house plan, check local zoning laws and building codes. Not all areas allow rental units or secondary suites. Thoroughly research and comply with all local and state regulations to operate legally and avoid penalties.

• Use your city or county’s building department website as a starting point, or talk to a local architect.
• Platforms like Airbnb also provide helpful information about local laws and regulations, which can be essential for ensuring your rental operates legally and successfully.

Mortgage Implications
Some mortgage agreements allow for occasional or short-term rentals (like Airbnb), but long-term renting may have conditions.
Discuss your plans with your lender early on. You may need:

• Approval for income-generating space
• Additional insurance
• Modified terms in your agreement

Being upfront avoids future complications.

Budgeting for a Dual-Purpose Space
Adding an ADU will increase your initial investment—but often much less than you think. For example, converting a garage or basement may cost far less than building new square footage. Try to find and evaluate various affordable solutions that maximize functionality without compromising your quality of life.

Insurance Considerations
Before you start using your additional space as a rental or guest suite, it’s important to notify your insurance provider. Having the right coverage in place protects both your property and your peace of mind. Check with your provider about:

• Homeowner’s insurance updates
• Landlord or short-term rental riders
• Guest liability coverage

Taking care of insurance updates early helps you avoid unexpected issues, whether you’re hosting family or paying guests.

“The U.S. short-term rental market is expected to more than double between 2022 and 2030, growing at an average annual rate of 10.3%. Homes remain the top revenue-generating accommodation type.”

IF YOU CHOOSE TO RENT: TIPS FOR SUCCESS ON PLATFORMS LIKE AIRBNB

Estimate Your Earning Potential Before You Start
Before listing your space, it’s smart to get a clear idea of how much income you could realistically generate. Tools like the AirDNA Airbnb Calculator allow you to input your location and property type to estimate potential monthly earnings based on market data.

Creating an Attractive Listing: Photos, Descriptions, and Amenities

• Use high-quality photos with great lighting.
• Write a friendly, detailed description focusing on comfort and convenience.
• Include amenities like Wi-Fi, coffee station, keyless entry, etc.

Managing Bookings and Guest Communication

• Automate messaging where possible.
• Be responsive and clear in your communication.
• Set boundaries and house rules in advance.

Maintaining a 5-Star Experience
Cleanliness is one of the top factors that influence guest reviews—and it’s absolutely non-negotiable if you want to maintain a 5-star rating. If you’re managing the unit yourself:

• Keep cleaning supplies well-stocked.
• Always provide fresh linens and towels.
• Make a simple cleaning checklist to stay on track and save time.

Read this guide for rental owners to learn more about the importance of good Airbnb host reviews.

SUMMARY

Whether you call it a rental suite, in-law apartment, or an Accessory Dwelling Unit (ADU), a thoughtfully integrated space in a well-designed Scandinavian home can offer comfort, flexibility, and the opportunity for passive income for the days ahead.

If you’re interested in adding an ADU to your new home, visit our Plans page to explore our designs. Once you find a plan you love, simply fill out our Customization Form with details about your desired extra space, and we’ll help modify it to your unique needs.

Smart design is timeless—and so is the value it creates!