Friday, January 4, 2019

Could ADUs Be the Next Big Thing for Modular Factories

When a big industry expands into a new city like Amazon did in Virginia and Proctor and Gamble did in West Virginia and offers thousands of new jobs you have to know that there will immediately be a housing shortage.


Of course developers will turn to modular factories for their new apartment projects and modular hotels will begin popping up everywhere and let’s not forget about those homeowners that have enough land to add an Accessory Dwelling Unit (ADU) on their property.

An ADU is a smaller, independent residential dwelling unit located on the same lot as a detached single-family home.

The most common reasons homeowners add ADUs is gaining income via rent and/or housing a family member.


ADUs are not a new idea. For years homeowners have added tiny houses on foundations, granny pods and rental units to the rear or adjacent to their homes. Sometimes these are placed on the property without zoning or code approvals. In the case of tiny houses on wheels a simple water hose and a power cord are enough to begin charging rent to park it.

Now with more cities and even some rural counties passing new or revising zoning regulations to allow ADUs the code enforcement people will begin taking a closer look at what will be allowed as an ADU.

However now that ADUs will most likely fall under the state’s latest IRC version many of those makeshift houses and most tiny houses won’t pass inspection for occupancy as a rental.

Enter modular construction. Look for several East Coast modular factories to begin adding a line of ADU plans and offering to builders in high growth areas in the East like DC, NYC and Philly.

It really doesn’t take an entire assembly line to produce ADUs since most of them are one or two modules and the size allows them to be produced on a smaller line away from the flow of the main production lines of the factory.

Most people want to stay in their homes as they age, but finances and design can be problematic. An ADU could help aging people meet their needs without moving and if you are a builder you just might want to check your city’s ordinances about ADUs and if they are allowed, become the expert and start ordering them from a modular factory.

Some homeowners will even move into the ADU and rent out the house for a larger ROI.

2 comments:

Anonymous said...

Zoning? Deed restrictions? Protective covenant restrictions.It's if they are allowed.. its a BIG if, indeed. Be great IF they are..of course. Best you find an experienced RE law firm before you gear up.

Mike said...


codes and zoning easy to check online. most areas in the USA are rural and have few requirements.