How do accessory dwelling units (ADUs) impact the housing supply?

Accessory dwelling units (ADUs) significantly contribute to the housing supply by increasing the availability of affordable housing options on existing properties. ADUs are smaller, self-contained living spaces that can be added to a property, often within the same lot as a single-family home. Their existence allows homeowners to utilize their land more efficiently by creating additional rental units without developing new properties.

This added housing can help address local housing shortages, particularly in areas where demand is high but land for new development is limited or expensive. By enabling homeowners to rent out these units, ADUs also provide more affordable housing options for tenants, as they often offer lower rent compared to conventional housing units. Therefore, the development of ADUs plays a vital role in increasing the overall housing supply and promoting more diverse housing solutions within communities.

In contrast, the other options present misconceptions. For instance, while ADUs can be found in urban areas, they are not restricted to them; they can also be developed in suburban and rural areas, depending on local regulations. Additionally, while it’s true that the introduction of new units may impact property taxes, the assertion that they lead to higher property taxes is not universally applicable and often varies by locality and specific circumstances surrounding ADU development. Lastly,