Five Unanswered Questions About ADUs
Checking in on the world of accessory dwelling units
Last chance to sign up for Thesis Driven’s Fundamentals of Real Estate course kicking off on October 28th. The five-week virtual course is ideal for people new to the real estate industry.
And don’t forget our in-person Fundamentals of Capital Raising—a two-day bootcamp tailored to real estate operators looking to hone their pitch and reach the right investors—happening in NYC on November 12-13.
In October 2022, we published a deep dive into the emerging Accessory Dwelling Unit (ADU) sector. It was the second-ever Thesis Driven letter, and we were excited about ADUs as a way to add housing to low-density neighborhoods by repurposing garages and backyards.
In the two years since, the ADU sector has seen substantial evolution—and thrash. So it’s worth revisiting and seeing where things stand. Specifically, we’ll tackle five key questions that were unanswered at the time of our last letter, along the way exploring winners, losers, and the future outlook of the ADU market:
Do people want ADUs?
Are ADUs just a California phenomenon?
The role of manufactured vs custom-built ADUs;
How will ADU financing work?
What kind of cap rate will ADUs achieve on the market?
Including excerpts from interviews with executives from ADU companies Villa, New Avenue, Bequall, YoungLewin, and more.