(855) 321-7473

M-F 9am-5pm Eastern

adu accessory dwelling units
Alternative Homes

Accessory Dwelling Units: The Appeal of Living Small

By Frank Jossi, Rise Writer
Last Updated: Feb 4, 2025

On a quiet street next to an alley in South Minneapolis a small two-story square gray modernist home and eye-popping orange window trim represent a new style of housing that has emerged in dense urban neighborhoods.

Table of Contents

  1. What is an ADU?

What is an ADU?

Legally called an “accessory dwelling unit,” or ADU, the home is a third the size of a typical new home in the city. ADUs – often called “second suites” -- are generally a few hundred square feet and built as an addition to a home or a separate standalone structure. Homeowners can cordon off a section of their existing homes to create ADUs, too, with city approval.

adu exterior red siding
Photo Credit: Alyssa Lee Photography

Chris Iverson, the home’s owner, understood his role as a groundbreaker for ADUs in his neighborhood and went with a sleek design, so out-of-the-ordinary dog walkers, bikers, and drives often stop and have a look.

“The architecture gets a lot of interest from people,” said Iverson, who works out of his home in the information technology field. “I’ve had people stop by and take photos and say, ‘we love your house.’”

adu exterior night
Photo Credit: Alyssa Lee Photography

On a home tour earlier, this year the 650-square-foot ADU attracted more than 1,200 visitors who discovered what living small looks like in the Longfellow neighborhood of the city. Many expressed an interest in building one on their property and asked him plenty of questions, he said.

The idea of having a separate residence within a home or on city property is hardly new. They went by many other names in the “old” days, among them laneway houses, granny flats, in-law units, and secondary units. Today planners dub them ADUs, and they have become prevalent in Portland, Los Angeles, Seattle, Austin, and other growing cities.

adu open patio doors
Photo Credit: Alyssa Lee Photography

Driving the trend now, as in past decades, was a desire to live in the city, to offer an affordable option to young couples who might not otherwise be able to buy a home, and to allow parents to age in place near family members who can provide support, companionship, and love. Others want ADUs to lease them as Airbnbs or longer-term rentals.

“There is a more urban mentality to ADUs,” said Christopher Strom, the architect of Iverson’s home. “It’s more about proximity to amenities than amenities you would have in the home. It’s for people who heavily weigh the location of where they’re living than having a large house.”

Loading...
Loading...
Loading...
Loading...
adu bedroom and lounge
Photo Credit: Alyssa Lee Photography

Back inside, yellow pocket doors with clouded window glass separate the living room/kitchen with the ADU’s 11’ by 11’ bedroom. Surprisingly, the bedroom is large enough to boast a walk-in closet on one side, a bathroom, and a washer/dryer on the other.

Iverson sought quality in the home’s materials, opting for solid wood pocket doors, a dark brown Marmoleum floor, radiant floor heat, and an air exchanger.

Iverson compiled with the ADU ordinance requiring separate electric and gas connections. He managed to hook into the existing water piping that serves the duplex, with no water pressure issues reported by his tenants or experienced by him.

Loading...
adu longfellow garage exterior
Photo Credit: Alyssa Lee Photography

“I would say the biggest barrier is the price,” he said. “People have it in their mind they’re getting a tricked-out garage, and it’s a small, second home, with all the same traits and complexities that come with building any home.”

Yet the market is strong enough for Strom to have developed a special website for clients interested in a second suite. The site suggests a rough “guesstimate” of $175,000 to $300,000 for a second suite and a completion range of between six and 12 months.

adu longfellow open living room kitchen
Photo Credit: Alyssa Lee Photography

The lifecycle of a home with a second suite is outlined in an intriguing way. An ADU begins as more space for a growing family. Years later it is rented or used by a son or daughter attending college, followed by a young adult needing a space to live.

Grandparents eventually move in and when the initial owner's age, they migrate to the second suite, and the main house becomes occupied by one or more of their family members.

Loading...
Article By

Frank Jossi

Based in St. Paul, Frank Jossi is a journalist, editor and content strategist. He covers clean energy in Minnesota for Midwest Energy News and writes frequently for Finance & Commerce. His work has appeared in more than 70 local, national and international publications.

Frank Jossi