Why Two-Thirds of Homeowners Now Support Backyard Cottages for Aging in Place

Can building a secondary home in the backyard solve one of the most pressing eldercare challenges facing American families today? According to landmark research published this week by AARP Research, 65 percent of non-unit homeowners would now consider constructing an accessory dwelling unit (ADU) on their residential property. Often referred to as in-law suites, granny flats, or backyard cottages, these self-contained living spaces are rapidly shifting from an architectural novelty into a core strategy for enabling older adults to age in place safely and affordably.

With traditional long-term care expenses escalating and families seeking closer connection across generations, independent secondary housing provides a practical middle ground. It allows aging parents to retain their autonomy and daily privacy while remaining only steps away from family assistance. Yet, despite widespread enthusiasm, steep upfront construction bills and outdated local zoning rules continue to create significant hurdles for households trying to make this arrangement a reality.

By the Numbers: Caregiving Drives Demand for Secondary Suites

The comprehensive study from AARP Research and the AARP Public Policy Institute underscores that housing choices are increasingly dictated by family care needs. While nearly two-thirds of general homeowners express an openness to building, the figure rises sharply among households actively managing eldercare responsibilities.

Source: AARP Research

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	Considering an ADU
All Non-ADU Homeowners	65%
Active Family Caregivers	73%

The survey highlights distinct motivations among property owners evaluating whether to add an independent dwelling to their lot:

• Eldercare Priority: Providing direct care for an aging parent emerged as the single largest reason, cited by 44 percent of interested homeowners.
• Support for Younger Generations: Offering housing for adult children represented the second most common motivation, cited by 31 percent.
• Supplemental Retirement Finances: Creating rental income to strengthen personal retirement finances was selected by 26 percent.

Rather than viewing an ADU strictly as a speculative real estate investment, families approach these cottages primarily as personal lifelines. Active caregivers in particular see an on-site cottage as an answer to the physical and logistical strain of traveling between two separate residences to manage meals, medications, and household safety.

Category	Proportion / Metric	Key Factor Reported by AARP
Non-ADU Homeowners	65%	Open to building a secondary residence on their lot
Active Family Caregivers	73%	High interest in building on-site housing for care
Aging Parent Care Motivation	44%	Primary reason for pursuing an ADU
Adult Child Housing Motivation	31%	Supporting younger adult family members
Retirement Rental Income	26%	Generating steady income during retirement years
Primary Impediment Cited	58%	Local zoning restrictions and construction expenses

Financial Realities: Upfront Capital Versus Nursing Home Costs

The economic pressure driving this housing shift is substantial. Formal institutional long-term care costs have risen sharply in recent years (check the latest at aarp.org).raging over $9,000 each month. For a family supporting an older relative for several years, those ongoing monthly outlays quickly deplete life savings and retirement accounts.

Building an independent cottage or converting interior space represents a major capital project, with initial construction expenses frequently ranging between $150,000 and $250,000. While substantial, this one-time development expense functions as a long-term property investment that adds permanent residential value to the parcel. Compared to sustained monthly care fees of $9,000, an accessible backyard home can become an economically sound alternative over an extended caregiving timeline, while simultaneously keeping family wealth within the household.

In addition to pure cost comparisons, an ADU offers living features that traditional facilities struggle to replicate. A backyard cottage allows older adults to remain rooted in their familiar neighborhoods, maintain social relationships, and preserve personal schedules. When constructed with universal design principles—incorporating zero-step entries, 36-inch wide doorways, barrier-free showers, and lever door handles—an accessory home supports physical frailty without imposing an institutional atmosphere.

Overcoming Zoning and Permitting Roadblocks

Despite broad public support, regulatory barriers remain a formidable obstacle. In the AARP findings, 58 percent of property owners identified municipal zoning restrictions and construction permitting fees as the most significant barrier preventing them from proceeding. Many residential neighborhoods remain restricted under outdated single-family zoning codes that prohibit secondary kitchens, ban detached residential structures, or impose rigid parking minimums and lot-size mandates.

To resolve these bottlenecks, over two dozen states have introduced statewide ADU zoning reform statutes alongside pre-approved design initiatives. These statutory changes limit the ability of municipal governments to arbitrarily deny accessory home permits on residential lots.

Additionally, forward-thinking municipalities are collaborating with urban planning organizations to offer catalog libraries of pre-approved building plans. According to research from The Pew Charitable Trusts, choosing a municipal pre-approved plan allows homeowners to bypass prolonged architectural review phases. Using these standardized blueprints can save families between $5,000 and $15,000 in upfront engineering and design fees while accelerating permit issuance from several months down to a matter of weeks.

Global Perspective: Multigenerational Support in Japan

The United States is not alone in seeking housing solutions that accommodate aging populations within existing communities. In Japan, multigenerational co-living has long been supported as national public policy.

Through the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), the Japanese government provides direct municipal grants and property tax reductions for multigenerational cohabitation projects, known locally as Sansedai Dōkyo (three-generation living). Under this framework, homeowners who construct separate garden suites, expand existing homes, or install secondary plumbing and kitchens to accommodate aging parents receive targeted financial assistance. Furthermore, the Japan Housing Finance Agency offers low-interest, government-backed loans specifically designed for multigenerational additions. These coordinated public policies acknowledge that supporting caregiving on family properties reduces national burdens on public healthcare infrastructure.

Practical Steps to Plan an Accessory Dwelling Unit

For families considering an accessory home or converted in-law suite, careful early planning avoids costly missteps. Local ordinances, utility hookups, and accessibility standards must be evaluated before committing financial resources.

• ☐ Verify Local Zoning and Permitting Eligibility: Contact your municipal building or city planning department to confirm whether your parcel permits detached or attached accessory dwellings under current municipal rules.
• ☐ Inquire About Pre-Approved Design Libraries: Ask local building officials if your city offers pre-reviewed architectural plans, which can eliminate between $5,000 and $15,000 in structural engineering expenses.
• ☐ Evaluate Upfront Financing and Budgets: Review personal savings, home equity lines, or specialized renovation loans to assess feasibility against current local costs (check the latest at aarp.org). development costs of $150,000 to $250,000.
• ☐ Incorporate Lifelong Universal Design Standards: Consult the AARP HomeFit Guide at aarp.org/homefit to ensure plans specify zero-step entries, 36-inch wide doorways, barrier-free showers, and lever hardware.
• ☐ Assess Site Utility Connections: Ensure your water, sewer, and electrical service panels can support an additional living unit without requiring expensive public infrastructure upgrades.
• ☐ Establish Clear Family Agreements: Discuss long-term care expectations, personal boundaries, utility cost divisions, and daily privacy before construction begins.

For comprehensive design guidance and community housing models, homeowners can download AARP's step-by-step ADU design toolkit at aarp.org/livable or contact AARP directly at 1-888-687-2277.

Data presented in this article reflects the November 2026 AARP Research study and related municipal reports. Building codes, permit availability, and zoning regulations vary widely across state and municipal jurisdictions; consult your local planning department for specific regional requirements.

Sources

• AARP Research, "Accessory Dwelling Units: Benefits and Barriers (ADU Consumer Survey)," Joanne Binette, Published November 03/04, 2026 https://www.aarp.org/research/topics/community/info-2026/accessory-dwelling-units-benefits-barriers.html
• AARP Livable Communities, "Fact Sheet: Accessory Dwelling Units — What They Are and What They Can Do," 2026 https://www.aarp.org/livable-communities/housing/info-2019/accessory-dwelling-units-adus.html
• The Pew Charitable Trusts, "Preapproved Building Plans Help Cities Improve Housing Affordability," 2026 https://www.pewtrusts.org/en/research-and-analysis/reports/2026/05/preapproved-building-plans-help-cities-improve-housing-affordability