Additional dwelling units: A potential solution to the affordable and senior housing crisis

Daniel Calo
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Daniel Calo: Schack Institute of Real Estate, New York University, New York, USA

Journal of Urban Regeneration and Renewal, 2022, vol. 15, issue 4, 371-378

Abstract: As housing prices continue to rise faster than inflation and wages in the US, affordable housing continues to become difficult, borderline impossible for minimum wage and renter wage workers to obtain. This paper aims to explore the possibility of zoning regulations to allow the widespread construction of additional dwelling units (ADUs). Many macroeconomic factors continue to contribute to the unavailability of affordable housing. A combination of low wages, low housing stock and high property values contribute to the senior and affordable housing crises. The COVID-19 pandemic further exacerbated the impact of these factors on affordable housing. Low-income individuals and families were unequally affected by increased unemployment rates. Senior housing has become a more pressing issue as the senior population continues to increase and most seniors live on a low monthly income based on pensions and assets. This makes it difficult for the majority of seniors to continue to afford where they were living when they were fully employed and removes the option of aging in place. ADUs provide a unique solution to both the senior and affordable housing crises through increasing housing stock in pre-existing areas and neighbourhoods. This is done through the reduction of zoning restrictions by local governments to allow homeowners to convert detached garages and basements into apartment dwellings. This gives the homeowners a potential source of monthly income through rentals, as well as increasing housing stock in pre-existing areas. ADUs can contribute towards the necessary increase in senior and affordable housing to combat their respective crises.

Keywords: additional dwelling units; affordable housing; senior housing; low-income housing; housing and urban development; federal housing administration (search for similar items in EconPapers)
JEL-codes: R00 Z33 (search for similar items in EconPapers)
Date: 2022
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