ADUs bring income and options for Mass. homeowners, but resale value isn't yet clear

"One year ago this month, on Feb. 2, 2025, the ADU provisions in Governor Maura Healey's Affordable Homes Act took effect. The law gives most Massachusetts homeowners the right to build ADUs up to 900 square feet on their property without special approval from their town's zoning board. The idea is that these backyard homes can be used to house aging relatives, rented out for additional income, and play a role in easing the state's housing shortage."

"A December Globe report found that construction on ADUs has been sluggish since last year, due to factors like permitting obstacles and upfront costs - units can cost between $150,000 and $300,000 to build, per the ADU insights website AduWizard, while more luxe versions surpass $500,000. With such a large up-front investment, those considering building ADUs are wondering if their money will be recouped and whether eventual buyers will be interested in them."

""We weren't hunting for [an ADU], but once we found this house and saw it was there, we felt like it bought us a spectacular amount of optionality," Matthew said, explaining its rental income helps defray mortgage costs and gives them flexibility to make improvements on the house."

An Affordable Homes Act provision effective Feb. 2, 2025 gives most Massachusetts homeowners the right to build ADUs up to 900 square feet without special zoning board approval. Backyard homes can house aging relatives, generate rental income, and help address the state's housing shortage. Construction has been sluggish because of permitting hurdles and high upfront costs; typical ADU builds run $150,000–$300,000 and luxury units exceed $500,000. Early ADU buyers report rental income offsets mortgage costs and increases flexibility. Potential builders worry about recouping construction costs and whether future buyers will value or want properties with ADUs.

Read at Boston.com