How Are ADUs Transforming Atlanta's Housing Landscape?

ADUs are rising in popularity day after day. People find it easier to rent an ADU than a complete home. Atlanta, just like any other American city, has allowed its residents to build and rent out their ADUs to people on long to short-term rentals.

In this article, we will discuss how Atlanta ADUs have completely transformed the residential landscape and how you can benefit from it while abiding by the rules and regulations that come with it.

The Rise of ADU and Tiny Houses in Atlanta

Georgia is one of the four states that provides home to 1.4 million ADUs in the US. The major advantage of such backyard accessory dwelling units is that they help elderly people rent out their ADU and earn a good profit to live the rest of their post-retirement life with ease. On the other hand, it helps people struggling to find a good place to live at a low rent.

The ease of rules and regulations in Atlanta has allowed plenty of organizations to take initiatives in order to increase ADUs as much as possible. In 2021, a crowdfunding platform named “Groundfloor” started a pilot program to increase ADU construction in Atlanta. Their effort paid off as three new ADUs were funded by them with the help of the pilot program.

Furthermore, additional efforts were also made by people in 2021 to encourage everyone to build ADUs. Kronberg, a principal at Kronberg Urbanists and Architects and a member of a local group in Atlanta, tried to push the city to pass an ordinance to let the owners sell their accessory dwelling units separate from their primary dwellings. However, the efforts didn’t pay off that well.

The housing crisis is a major issue that needs immediate attention in Atlanta, and locals such as Kronberg and his group believe that ADUs are the only way out of it.

However, another barrier to building an ADU is its high cost. Building a simple ADU can cost anywhere from $60,000 to $300,000, which is a hefty price not everyone can afford. So, an alternative to it is a prefab house that is less expensive and fulfills the need quite well. All these measures taken by the Atlanta ADU builders, manufacturing companies and locals have motivated more and more residents in Atlanta to build accessory dwelling units and benefit from them.

The Benefits and Regulations Driving This Trend

Before you build an ADU, there are some rules and regulations that you need to follow. All the requirements mentioned below must be met in order to benefit from the construction of an ADU with your primary dwelling.

Narrow and Deep Lot Sizes

Narrow lots and deep lots leave plenty of space at the back of your home for an ADU. Moreover, ADU doesn't take up the space of your lawn and still manages to fit in the limited space, which makes it easy for anyone living in Atlanta to build one. The house in front also keeps the ADU hidden from the main street view, having a minimal impact on the surrounding area.

Growing in Population

Although Atlanta has a lot of traffic on the roads, it still is 143rd in the list of most populous cities in the US. This shows that the city has incredibly low people per square mile, which leaves plenty of room for more people to reside. Opportunity for more people to reside means a high requirement for additional dwellings, and there is no better way to build a dwelling than an accessory dwelling unit.

No Additional Parking is Required

In Atlanta, you don't need additional parking with your ADU. An ADU is the only way to build a home without needing to have separate parking, which also adds to the numerous benefits of building one.

A Place with Diverse Communities

A place with diverse communities is where an ADU would allow people from different places to be accommodated. A modern ADU can easily accommodate a family with one or two children, so traveling people would have a great time living in Atlanta modular homes ready to provide them with shelter.

Favorable Size Restrictions

In Atlanta ADU rules, the size restrictions and setback requirements for the ADUs are not as difficult to follow as any other city in America. You can build an ADU as big as 750 square feet, and there is no minimum size requirement for your convenience.

Good Financial Returns

An ADU cannot be sold separately; however, it can be rented out to other people to earn a good amount of money. A single-bedroom unit can make you earn as much as $550 to $750 after tax. On the other hand, a two-bedroom unit can make you earn around $800 to $1000 per month, which is an impressive return on investment. Keep in mind that there aren’t any rental amount restrictions that you need to follow, but current home equity loans are running at around 5 to 6.5 percent, so set the rent accordingly.

No Direct Road Access Is Required

In Atlanta, you don't need direct access from the ADU to the road.

Easy Permission Process

The permission process for the construction of an ADU is quite easy in Atlanta. All you need to do is prepare a site plan, keeping all the setback, size, and zoning requirements in consideration. Once you submit the plan, a fee will be charged, and the building permit will be issued. As soon as you receive the permit, you can begin the construction of your ADU.