Accessory dwelling units (ADUs) are becoming an increasingly popular segment of the remodeling industry, according to new data from the National Association of Home Builders (NAHB). The association’s Remodeling Market Index found that 24% of remodelers began projects involving additions intended for ADU use over the past 12 months, while 23% converted existing spaces into ADUs. Both figures represent significant increases compared with 2019, reflecting growing interest in expanding residential living space.
ADU construction activity varies by region, with the Northeast reporting the highest participation. At least one-third of remodelers in the region worked on both ADU additions and conversions, followed by the West, where at least 27% reported each project type. The Midwest recorded the lowest participation, with fewer than 20% of remodelers undertaking either type of project. Less restrictive ADU regulations in several Northeastern and Western states may be contributing to stronger activity.
Project costs have also risen considerably. According to NAHB, 62% of ADU projects now cost $150,000 or more, more than double the share reported in 2019. Additionally, 71% of remodelers identified detached structures as a defining feature of their ADU projects, while 67% cited separate entrances and 58% reported dedicated kitchens. The findings highlight an expanding market for remodeling professionals as homeowners explore additional living space and alternative housing options.
