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ADUs offer additional housing for extended family, rental income, and more.

Home Ownership

Small Footprints, Big Potential for Housing Solutions

08/20/25  |  Liz Lyster

As housing affordability continues to challenge our local communities, we find it encouraging to see legislative steps that prioritize affordability, flexibility, and access, like Massachusetts’s Affordable Homes Act, signed into law last year by Governor Maura Healey. One of the changes we find most intriguing is the expanded ability to build Accessory Dwelling Units, or ADUs. These are small residential living spaces located on the same lot as another home, either within an existing primary residence, like converting a basement into an apartment, attached to a primary residence as a new construction addition, or completely detached, like a cottage or converted detached garage in a backyard.”

The Basics in Massachusetts
ADUs are now allowed by right statewide in all single-family residential zones—meaning homeowners can build small units (up to 900 sq ft) on their property without needing a special permit. The reform overrides local bans, with a goal of supporting aging in place, multigenerational living, and rental income opportunities. The state estimates that 8,000 to 10,000 ADUs could be built over the next five years as a result of this change, although no official data is currently available.

 

A trend in New England with a variety of outcomes
ADU policies vary across New England, reflecting each state's approach to balancing housing needs with local control. Massachusetts and Vermont stand out for requiring ADUs to be allowed by right in single-family zones, with Massachusetts implementing the most comprehensive and uniform policy. Connecticut, Maine, New Hampshire, and Rhode Island offer a spectrum of more restrictive policies that give discretion to local communities.

 

Living in—or renting out—an ADU comes with a unique set of challenges and opportunities. We found this Dwell Magazine article particularly helpful in identifying the key factors to consider. 


We’ll be keeping a close watch on developments here in Massachusetts—and how both small and big ideas are shaping the future of where we live. If you would like more detailed information about building an ADU in your backyard, you know where to find us!

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With their complementary communication styles, responsiveness, competence, and ability to truly listen, Ellie and Liz enable their clients to feel at ease throughout any real estate transaction. They would welcome the opportunity to be your next real estate advisors.

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