Accessory Dwelling Unit (ADU)

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Presentation transcript:

Accessory Dwelling Unit (ADU) Development Trends Housing Land Advocates Conference November 7th, 2014 Jordan Palmeri Oregon Dept of Environmental Quality palmeri.jordan@deq.state.or.us Research Credit: Martin Brown PSU City of Portland Metro AccessoryDwellings.org More details: http://www.deq.state.or.us/lq/sw/wasteprevention/greenbuilding.htm

Overview What’s an accessory dwelling unit (ADU)? Why does Oregon DEQ like them? Development trends Occupancy stats Do they provide affordable housing? ADU potential

What’s an Accessory Dwelling Unit (ADU)? An accessory dwelling unit (ADU) is a second dwelling unit on a single family residential lot. They’re also called granny flats, mother-in-law suites, in-law suites, etc. Photo: City of Santa Cruz

Why does Oregon DEQ like them?

Building Small is a green building strategy

House size has increased Source: City of Milwaukie and URBSWORKS

Why focus on ADUs? Mismatch between household size and house size (consumption patterns) Single family construction has largest sqft/person ratios 64% of Oregon population in single family detached Good way to introducing smaller SF housing to market Multifamily already small Most ADUs are urban infill that utilize existing infrastructure Nice package that had potential environmental, social, and economic benefits Wanted to leverage other momentum in ADU industry

ADU permits in Portland, OR

Where are ADUs being built?

Where are ADUs being built?

Where are ADUs being built?

Where are ADUs being built?

Where are ADUs being built?

Where are ADUs being built?

Survey Research of ADU owners Table 2: Final Response Rates Target Completes Total Completes Valid Sample Response Rate Portland 248 290 673 43.2% Eugene 82 49 91 53.8% Ashland 57 30 66 45.5% Total 369 830 44.6%

Are ADUs providing housing?

Average ADU household size = 1.45 people Could use improvement Average ADU household size = 1.45 people

ADU owner status?

Who lives in ADUs?

Who lives in ADUs?

Who lives in ADUs?

Who owns Portland ADUs?

Do ADUs have low environmental impact?

Do ADUs cause parking problems? Each ADU contributes 0.46 street parked cars

Do ADUs support the community economically? Average property tax increase of $1134 per property

Cost of ADU construction Detached ADU - Average cost $100,000 Attached ADU - Average cost $50,000

Rental rates ADU avg $756/month (with $0 rents) Comparable multi-family rent avg 778sqft/month ADU avg $872/month (w/o $0 rents)

Do ADUs provide affordable housing? Occupant 13% of ADU occupants are charged $0 in rent 5% of ADU occupants are charged<$500/month 18% of ADUs provide affordable housing 85% of these tenants are family or friends of the ADU owner 48% of ADU owners are between 55 and 74 years old. The ADU will make their housing more affordable into retirement. Owner Average cost of new ADU is $78,000. How does this compare to the cost of a new affordable housing unit? Developer

Sabin Green Woodstock Gardens Future ADU trend? Separating ownership to create affordable starter homes? Sabin Green Woodstock Gardens

Includes: Accessorydwellings.org Accessorydwellings.org Case studies Videos Tour info Zoning code Appraisal guide Financing guide Research Accessorydwellings.org

Accessory Dwelling Unit (ADU) Potential

Thank You! Jordan Palmeri Oregon DEQ 503-229-6766 palmeri.jordan@deq.state.or.us http://www.deq.state.or.us/lq/sw/wasteprevention/greenbuilding.htm