Looking at ads for houses for sale in the US on specialized American sites, reading housing surveys and even scrolling through social media, one thing is clear: buying a new home has never been as out of reach, even for two working people with decent salaries, as it is today.
Many people in the US are choosing the option of building small houses or accessory dwelling units (ADUs). Many of them did so because moving to a new or larger home wasn't an option for them or their loved ones, so they resorted to a workaround that, while not cheap, is cheaper than a typical house.
The cost to build a tiny house in Northern California is $248,000. That's a bargain considering that typical homes in the area sell for over $1 million.
ADUs are small backyard homes that typically range from 13 to 1100 square feet, depending on local regulations. The average cost to build an ADU is between $100,000 and $300,000, not including permit fees. Some states, including California, Colorado, New York and Vermont, offer grants to help homeowners offset these costs.
Sherry Koons, an author and expert on tiny houses, managed housing and home construction, told Business Insider that the severe shortage of homes for sale in the country is driving the popularity of tiny houses and managed housing.
“It's a particularly tough market for young people and baby boomers trying to find a home,“ Koons said. “Housing problems are becoming more common with each passing generation. Parents will have adult children living in the ADUs on their property, and when “the children have children of their own, they swap homes.“
A 2024 study by the Federal Reserve Bank of San Francisco estimates that there are now at least 1.6 million ADUs in the United States. The Fed says the number of single-family homes with ADUs is nearly a third of the number of owner-occupied apartments nationwide. Of all the states, California has the most, with at least 201,000, followed by Washington, with more than 77,800.
California resident Selma Hepp, chief economist at Cotality, formerly known as CoreLogic, and an ADU owner herself, points out that while rising home prices and mortgage rates keep housing affordability at record lows, ADUs will continue to gain momentum.
“When you look at the markets that are the least affordable, in the future you may see people thinking about alternative ways to maximize their land,“ Hepp said. “Potentially in the future you will see them in more areas.“
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg