With the high cost and low inventory of affordable housing, the possibility of homeownership is decreasing and traditional rentals in high demand areas are quickly snapped up.
So what is a person suppose to do?
The trade-offs of living in the city versus the suburbs have historically been that city living is more expensive, but you are closer to work, which means less time commuting and more time for friends and family. Living in the suburbs is less expensive for housing, but you have a longer commute, which means less time for friends and family.
With the average commute approximately an hour to an hour and thirty minutes, living in the suburbs is becoming increasingly more expensive. With the cost of fuel, wear and tear on your car, increased car insurance, and unpredictable traffic, many people are searching for alternatives to traditional housing (home, apartment or condo).
The home industry is seeing increased demand for individuals, couples, and families for smaller, compact housing options. Small homes on compact lots (smaller than five-thousand square feet) are becoming increasing popular. These tiny homes, are providing an option for people wanting homeownership, but without the exceptionally large price tag.
But what about those who don’t want to be homeowners, what is their option?
Consider an ADU (Accessory Dwelling Unit). An ADU is a small “home” that is built within the boundaries of an existing single-family residential property, which can be either attached or detached from the original home. The majority of states have adopted laws which will allow for the addition of an ADU, but please verify with your state/local government to see if an ADU will be allowed in your area.
Living in an ADU has many benefits. Being closer to work, means less time for commuting and all of the expenses associated with car ownership and maintenance. Plus, you have the option of using mass transit, a bicycle, or ride-sharing services, making car ownership optional. With a shorter commute, you would have more time for leisure activities and more time for friends and family, which will ultimately reduce your stress level and can lead to a healthier lifestyle.