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Accessory dwelling units (ADUs) are promoted by some municipalities for social and environmental reasons. However, appraisals of and lending on properties featuring ADUs can be complicated by inaccurate perceptions of these dwellings and certain institutional policies. This article provides a primer on ADUs and tests an income-based approach to val...
Citations
... 27 Primary sampling unit is a geographical or administrative unit used for sampling; it helps ensure geographical representation in the sample. 28,29 Whereas a DU is a physical unit where people reside and represent the actual places where data are collected. 27 The PSUs are selected first in the sampling process and thereafter DUs are selected within those PSUs. ...
... 27 The PSUs are selected first in the sampling process and thereafter DUs are selected within those PSUs. 28,29 The response rate of the 2019 GHS was 87.2%. 27 Further information about the GHS sampling, study setting and weighting can be found in the 2019 GHS metadata report. ...
Background: Chronic diseases tend to affect the quality of life for older persons worldwide, especially in resource-constrained developing countries. Chronic diseases contribute to a large number of deaths among the population of South Africa.
Aim: This study examines the determinants of self-reported chronic disease diagnoses among older persons in South Africa.
Setting: The study setting was South Africa.
Methods: Cross-sectional data from the 2019 South Africa General Household Survey were analysed (n [weighted] = 4 887 334). We fitted a binary logistic regression model to determine the relationship between socio-demographic factors and being diagnosed with self-reported chronic diseases.
Results: We found that at least 5 in 10 older persons were diagnosed with self-reported chronic disease. The bivariate findings showed that age, population group, sex, marital status, level of education, disability status, household composition and province were significantly associated with self-reported chronic disease diagnoses. At the multivariate level, we found that age, sex, population group, marital status, educational level, disability status, household wealth status, household composition and province were key predictors of self-reported chronic disease diagnoses.
Conclusion: We found that various factors were key determinants of being diagnosed with self-reported chronic diseases. This study offers important insights into the main correlations between older adults and self-reported chronic illness diagnoses. More study is required on the health of the elderly as it will help direct policy discussions and improve the development of health policies about the elderly.
Contribution: This study highlights the need for a better understanding of, and continued research into, the determinants health among older populations to guide future healthcare strategies.
... In planning literature, ADUs are pictured as an infill development tool that can optimize material and social infrastructures (sewers, aqueducts, roads, schools, community centres) (McConnell & Wiley, 2011) and as an additional source of property taxes for cities (J. M. Brown & Watkins, 2012). It's implied that by redirecting some of the housing development towards urbanized neighbourhoods and reducing pressure for greenfield development, ADUs will play a role in limiting urban sprawl. ...
This qualitative case study provides an overview of regulations and building practices for detached accessory dwelling units (DADUs) in four Canadian cities: Vancouver, Edmonton, Toronto and Ottawa. Methods include documentary analysis, regulatory analysis and semi-structured interviews. Based on this multiple case study, some issues with current regulations were identified. Factors that are driving up cost and reducing uptake include being too prescriptive about design guidelines, as Vancouver's experience shows. In Ottawa, the obligation to choose between having either a DADU or a secondary suite in the main dwelling and size and height limitations are preventing widespread adoption. In terms of best practices, the City of Edmonton has developed a permissive regulatory framework by working closely with local experts. This allowed DADUs to answer a range of housing needs at a relatively low build cost, favoured the emergence of innovative practices, and resulted in an increasing proportion of infill development citywide.
... Despite intrigue from policy makers and widespread fear among residents that ADUs lower property values (Harris & Kinsella, 2017), there is relatively little empirical evidence on the effect of ADUs on property values. Brown and Watkins (2012) find that ADUs account for about 30% of the total property value of lots with ADUs. However, Sirmans and Macphearson (2003) find that, if one controls for additional square footage, bathrooms, and bedrooms contained within the ADU, the presence of an ADU actually significantly lowers the property value by about 5%. ...
We study the impact of legalizing the rental of Accessory Dwelling Units (ADUs) on property values. We use a dataset of property sales in Ogden, Utah both before and after a policy change legalizing ADU rentals in 2016. We apply repeat sales and differences-in-difference methods to evaluate the impact of the ordinance on property values. Theoretically, the ordinance could increase property values due to the higher expected returns available from ADU rental income, however, potential congestion, noise, and parking issues could alternatively cause property values to decrease. In our analysis, we find no significant impact of ADU legalization on property values in areas affected by the policy change compared to unaffected areas. These results are robust to a number of different model specifications. Several features of Ogden’s real estate market and policy environment may also contribute to this null result including challenges in effectively prohibiting black market long-term ADU rentals in areas where they remain illegal and/or property owners using ADUs for short-term vacation rentals which is legal city-wide. These results suggest that legalizing residential ADU rentals may be an effective way to increase the supply of affordable rental housing and provide supplemental income to homeowners without negatively impacting property values.
... It can also be difficult for homeowners to obtain financing to build an ADU (Peterson, 2018). Many lenders refuse to finance loans to build ADUs unless they are based on the homeowners' equity in the primary house (Been et al., 2014;J. Brown & Watkins, 2012;Chapple et al., 2017;Wegmann, 2015). In addition, lenders typically do not consider rental income anticipated from an ADU when determining whether the homeowner qualifies for financing to build it (Been et al., 2014;J. Brown & Watkins, 2012), largely due to federal financing guidelines. Fannie Mae, for example, generally requires that "b ...
... loans to build ADUs unless they are based on the homeowners' equity in the primary house (Been et al., 2014;J. Brown & Watkins, 2012;Chapple et al., 2017;Wegmann, 2015). In addition, lenders typically do not consider rental income anticipated from an ADU when determining whether the homeowner qualifies for financing to build it (Been et al., 2014;J. Brown & Watkins, 2012), largely due to federal financing guidelines. Fannie Mae, for example, generally requires that "borrower[s] must qualify for the mortgage without considering any rental income from the ADU" (Fannie Mae, 2021). This is especially problematic for lower income homeowners and those with little equity in their house. That includes many Black ...
Problem, research strategy, and findings
Accessory dwelling units (ADUs) are once again a hot topic, as communities across the United States face housing shortages and rising housing costs. For planners and policymakers attempting to facilitate ADU development, it is important to understand the homeowners who do not yet have one. Yet there is remarkably limited research on whether those homeowners are open to building an ADU, what motivations and obstacles they perceive regarding adding one, and why some homeowners do not want to build one at all. We surveyed 502 single-family homeowners in the Sacramento (CA) metropolitan area to investigate those three questions. Our findings suggest that up to 47% of single-family detached homeowners in the city of Sacramento could be open to building an ADU. Homeowners’ top-ranked motivation for adding one was housing themselves, family, or friends in the future. Cost-related concerns ranked as the biggest perceived obstacles. Homeowners who did not want an ADU cited a mixture of logistical challenges and potentially more immutable personal preferences.
Takeaway for practice
Our findings suggest five lessons for planners. First, permissive regulation is an essential, but not sufficient, step toward addressing homeowners’ perceptions of regulatory obstacles. Second, local government regulations are not the only source of ADU restrictions. Third, even where ADUs are technically allowed, it can still be an arduous process to get one permitted. Fourth, cost remains a big obstacle to building ADUs. Fifth, homeowners—especially low-income households—need better financing options.
... Lenders are often reluctant to approve mortgages for ADUs (M. J. Brown and Palmeri 2014; M. J. Brown and Watkins 2012;Peterson 2018), forcing homeowners or homebuyers to borrow against the equity of existing properties, draw from home equity lines of credit, or practice sweat equity (M. J. Brown and Palmeri 2014;Buker 2015;Chapple et al. 2017;Peterson 2018). ...
Accessory dwelling units (ADUs) are a strategy for providing affordable rental housing. We suggest a typology of regulatory approaches in Long Island, New York, differentiating between jurisdictions that allow nonfamily/nondomestic employee renters in ADUs (Type 1), allow only family members and domestic employees in ADUs (Type 2), and do not allow any ADUs (Type 3). Content analysis, descriptive statistics, and t tests reveal that there is variation among occupancy and design regulations, suggesting that jurisdictional fragmentation and exclusionary zoning present obstacles to using ADUs as an affordable housing strategy.
... Unlike building permits, which are applied-for, inspected, and then finalized, deed restrictions govern the behavior of current and subsequent homeowners by tying the operation of the ADU to the property's title. Furthermore, deed restrictions may interfere with the homeowner's property rights (e.g., develop, refinance, or sell the property; [116]). One can argue that cities can justify deed restrictions by claiming that homeowners are developing their properties differently from neighboring residences and creating potential nuisances, such as noise or parking. ...
... The primary source of funding for ADU production was the equity in the homeowner's residence. As noted in the research, homeowners construct ADUs for additional income and ADU rent could be used to qualify for ADU production loans [116]. In addition, many units were created through amnesty programs that legalized informal units with permits (e.g., Daly City, Encinitas, Lafayette, Los Gatos, Ojai, Petaluma, and San Carlos). ...
In 2003, California allowed cities to count accessory dwelling units (ADU) towards low-income housing needs. Unless a city’s zoning code regulates the ADU’s maximum rent, occupancy income, and/or effective period, then the city may be unable to enforce low-income occupancy. After examining a stratified random sample of 57 low-, moderate-, and high-income cities, the high-income cities must proportionately accommodate more low-income needs than low-income cities. By contrast, low-income cities must quantitatively accommodate three times the low-income needs of high-income cities. The sample counted 750 potential ADUs as low-income housing. Even though 759 were constructed, no units were identified as available low-income housing. In addition, none of the cities’ zoning codes enforced low-income occupancy. Inferential tests determined that cities with colleges and high incomes were more probable to count ADUs towards overall and low-income housing needs. Furthermore, a city’s count of potential ADUs and cities with high proportions of renters maintained positive associations with ADU production, whereas a city’s density and prior compliance with state housing laws maintained negative associations. In summary, ADUs did increase local housing inventory and potential ADUs were positively associated with ADU production, but ADUs as low-income housing remained a paper calculation.
... While homeowners were previously not allowed to borrow against the rental income of second units to finance garage conversions (M. J. Brown and Watkins 2012), recent changes to mortgage lending programs underscore the growing recognition that second-unit rental income can expand homeownership to more households. In California, as of May 2017, the California Housing Financing Agency now includes second-unit rental income in mortgage calculations for first-time homebuyers (California Housing Finance Agency 2017). ...
Cities have a large supply of garages that could be converted into affordable housing in single-family neighborhoods, but minimum parking requirements prevent converting most of these garages into apartments. We examine how cities can relax off-street parking requirements for houses with converted garages. In Residential Parking Permit Districts, cities can limit the number of on-street parking permits allowed at any address with a second unit. This policy can remove on-street parking congestion as a reason for neighbors to oppose garage conversions, double the potential number of housing units in single-family neighborhoods, and increase the supply of safe, affordable housing.
... Another option for landowners would be to build accessory dwelling units (ADUs). An ADU is commonly defined as "a small self-contained dwelling," usually "less than 800 ft 2 " and "typically with its own entrance, cooking and bathing facilities, that shares the site of a larger, single-unit dwelling" (Brown & Watkins, 2012; City of Davis, 2017, section 40.01.010; Wegmann & Nemirow, 2011). ...
... First, ADUs would increase property values and also provide the landowners a potential additional source of rental income. Not many studies have attempted to quantify how much an ADU adds to the value of the property as a whole (Brown & Watkins, 2012;Lang, 2005;Sirmans, MacDonald, Macpherson, & Zietz, 2005;Wegmann & Nemirow, 2011). But what evidence there is indicates that while ADUs in low-density suburbs may actually reduce property values (Sirmans et al., 2005), they can substantially increase property values in denser suburbs and urban areas (Brown & Watkins, 2012;Lang, 2005). ...
... Not many studies have attempted to quantify how much an ADU adds to the value of the property as a whole (Brown & Watkins, 2012;Lang, 2005;Sirmans, MacDonald, Macpherson, & Zietz, 2005;Wegmann & Nemirow, 2011). But what evidence there is indicates that while ADUs in low-density suburbs may actually reduce property values (Sirmans et al., 2005), they can substantially increase property values in denser suburbs and urban areas (Brown & Watkins, 2012;Lang, 2005). ...
The city of Davis, CA, has a rich history of high bicycling levels, and the city has ambitious transportation policies and goals. However, both the city of Davis and transportation scholars have overlooked the potential opportunities a surplus of on-street residential parking provides to cities. The existing literature on the influence of parking policy and provision has focused primarily on commercial districts and on large metropolises, neglecting parking in more purely residential areas. In this descriptive case study, we systematically observed the number of cars on a transect of residential streets in the early morning and late evening on weekdays to conservatively estimate the average peak parking demand by residents as a percentage of available parking spaces. On average, only 2 in 7 available parking spaces were occupied during peak hours. We note that the over-provision of on-street parking in residential neighborhoods could be a nexus for the city to achieve its sustainable transportation policy goals while addressing its fiscal and housing supply challenges. We discuss possible design solutions, including providing ecosystem services, implementing traffic calming measures, and creating accessory dwelling units.
... Because of this and other factors, homes with ADUs were found in one study to be undervalued by up to 9.8%. 13 5 Another barrier can be the experience level of the ADU developer. Those building ADUs tend to be homeowners unfamiliar with real estate and construction and see building an ADU as a major and risky project. ...
... 12. In large part because of rules enforced by public and quasi-public federal entities such as the Federal Housing Administration and Fannie Mae, it is mostly impossible for homeowners to finance the ADU portion of a purchase of a single-family house with existing ADU on the basis of expected tenant income (Brown & Watkins, 2012). 13. ...
What might be described as a double impasse characterizes debate on U.S. housing tenure, with advocates fighting for rental or ownership housing on one side and “Third Way” or mixed tenure solutions on the other. Breaking this impasse requires disengaging from conceptions of an idealized form of tenure and instead advocating making virtually all tenures as secure and supported as possible, so that diverse households are able to live in homes that best fit their changing needs over their lifecycles. This essay 1) presents data on the variety of tenures in the U.S., 2) conveys a new two-dimensional map of tenure according to their degrees of control and potential for wealth-building, and 3) shows how U.S. institutions shape their risks and subsidies. Most U.S. tenures are at least somewhat risky, including those that receive the greatest federal subsidies. A new housing system is needed to secure and support as many tenures as possible.
