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Why Is An ADU Still Profitable Amid COVID-19?



|Last Updated: 26 Jul 2022

There is every reason to believe that ADUs can do great in a recession.

We would like to claim that ADU is probably one of the best investments you can do with your money during this time of recession. As we all know, this latest pandemic is affecting everyone, as we've seen and heard in the news, the consequences of COVID-19 is going to be way bigger than what we've experienced back in 2008—the latest recession we had in history. COVID-19 has gravely impacted different businesses, from restaurants and shopping centers to gyms, and theatres. Even up to now, we are still uncertain when will things go back to the way they used to be. On a lighter note, experts and home investors alike thought of one good way to financially cope up amid this pandemic. With that being said, let's talk about ADUs and how is it still a great investment at these times of uncertainty.


1. ADU investment provides a steady income

Basically, ADUs are secondary dwelling spaces that are known to add value to your home and are commonly rented out to create a new stream of income for the family or the homeowner. With an ADU, you are investing directly into your future self. The next couple of years are the best time to start building an ADU and COVID-19 has clearly pushed this idea further. With the limited work opportunities we have right now, it is best to maximize the resource we can control, and by that, we mean upgrading your living space into a more profitable one by having an ADU or JADU.


2. ADU development is continuously flourishing

ADU development is not something that the state would or should mandate. This is specifically pointing out to Los Angeles homeowners who have more accommodating housing laws that will give no reason to not build an ADU. Also, the housing crisis is still rampant and one of the key solutions in resolving this is by building accessory dwellings that provide an extra source of income to homeowners and offer affordable housing options to renters.


  • Other significant reasons why Los Angeles homeowners should start developing their ADUs right now are:
  • Los Angeles housing costs too much for most people
  • There is a growing housing demand
  • A good number of people now prefer to live in residential areas
  • Most developed urban land is dominated by single-family residential zoning


3. ADU development helps stimulate the economy

There is every reason to believe that ADUs can do great even at a time of recession. Rationale players have now realized that ADUs are one of the safest places to park your money. We are well aware that we are gradually experiencing the effects of the COVID-19 recession and so one of the best ways to recuperate and get back on our feet is through ADU development. Let us also be reminded that ADUs offer something new, critical, and timely. This is our chance to help our communities save themselves from the anticipated economic outfall due to this pandemic.

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