Part Two of Two: The Role of Accessory Dwelling Units (ADUs)
Part One of this blog focused on how the YIMBY movement can help grow the housing stock for relocating employees.
Relocating employees often face significant challenges in finding suitable housing, especially in competitive, high-cost urban markets. The success of employee relocations depends on smooth logistics and ready access to comfortable and affordable living arrangements. Companies that provide relocation assistance must balance budgets, timelines and the employee experience—all of which can be dramatically influenced by the housing market.
Accessory Dwelling Units (ADUs)—also known as granny flats, in-law suites, or backyard cottages—offer a creative housing solution. These small, independent living spaces, built on existing residential lots, align with the goals of the YIMBY (Yes In My Backyard) movement to increase urban housing availability. However, ADUs are more than just a solution to urban housing shortages; they also offer unique benefits for companies with employee relocation programs. In this blog, we’ll explore how ADUs can help ease housing challenges, improve employee satisfaction, and reduce relocation costs for employers.
The Growing Housing Challenge for Relocating Employees
Finding a suitable home is a common pain point for relocating employees. Housing shortages, especially in cities with booming job markets, can make securing affordable housing near the workplace difficult. In tight markets such as San Francisco, Boston, and Los Angeles, employees may experience long search times, high rents, and increased commuting burdens. This situation causes stress for employees and can delay the relocation process and increase costs for employers. It can even make employees decline the relocation altogether.
The growing trend of ADU construction might offer a partial solution to some of these challenges. These smaller units provide new rental options in desirable areas, helping companies better support employees during their transition to a new city.
How ADUs Can Support Relocation Programs
Here are some of the ways in which ADUs can help address housing shortages and potentially alleviate some of the stress associated with employee relocation.
- Expanding Housing Options in High-Demand Markets
ADUs are particularly valuable in urban neighborhoods with limited and expensive housing supply. These units, typically built in backyards or as attached structures, allow cities to increase density without large-scale developments. Since ADUs are built on already developed lots, they offer additional housing options in neighborhoods where new construction might be restricted.
For companies managing relocation, this means increased access to housing in prime locations that might otherwise be out of reach due to cost or availability. Employees who relocate to cities with ADU-friendly policies will have a better chance of finding homes close to work, minimizing commuting time and improving their overall quality of life.
For example, in Portland, where ADU-friendly policies have been in place for years, the city has experienced steady growth in ADU construction. This has opened new rental opportunities in urban neighborhoods without disrupting their character, potentially offering relocating employees access to prime housing options.
- Creating New Affordable Housing Options for Relocating Employees
ADUs are typically smaller than traditional single-family homes or apartments, which makes them more affordable. For relocating employees, particularly those moving to high-cost housing markets, ADUs can offer a more budget-friendly alternative to traditional housing options. Whether employees are looking for short-term housing while they settle into a new city or a long-term rental solution, ADUs provide greater flexibility at a lower price point.
According to the Urban Institute, ADUs can be built for significantly less than the cost of a new standalone home, often around 25-50% less, depending on the location and design. This cost-effectiveness can translate to more affordable rental rates, easing the financial burden on employees moving to expensive areas.
- Providing Flexibility for Short- and Long-Term Assignments
Relocation does not always mean a permanent move. Many employees need temporary housing while searching for a home, adjusting to a new city, or completing short-term assignments. ADUs offer the versatility to meet these varying needs, as they are often available for both short-term and long-term leases.
For example, employees on temporary assignments might prefer the privacy of an ADU over a corporate apartment. Similarly, employees relocating with their families might find an ADU to be a suitable interim solution while they search for a more permanent home. This flexibility reduces stress and ensures a smoother transition for the employee.
- Improving the Employee Experience
Flexible housing options like ADUs increase employee satisfaction by offering comfortable, personalized living spaces in neighborhoods that might otherwise be unattainable. This helps create positive relocation experiences, boosting morale and increasing the likelihood of a successful transition.
- Supporting Company Sustainability Objectives
As companies become more environmentally conscious, the appeal of sustainable housing options grows. ADUs align with sustainable relocation goals by using existing land and infrastructure rather than contributing to urban sprawl.
By promoting the use of ADUs, companies demonstrate a commitment to sustainability while also helping employees integrate into local communities. Many ADUs are in walkable neighborhoods with easy access to public transportation, which reduces commuting times and environmental impact. This supports healthier lifestyles and creates a sense of belonging for employees moving to new areas.
The Role of YIMBY Policies in Expanding ADU Availability
The success of ADUs as a housing solution relies heavily on local policies. The YIMBY movement has played a crucial role in promoting zoning reforms that support ADU construction, making it easier for homeowners to build these units on their properties. Over the past decade, many cities and states have streamlined the permitting process for ADUs, reduced fees, and relaxed zoning regulations.
- California: In 2020, California implemented laws encouraging ADU construction, significantly increasing ADU availability. This has opened new rental opportunities in some of the state’s most competitive housing markets.
- Seattle: By reducing parking requirements for ADUs, Seattle has removed one of the most significant barriers to their construction, allowing homeowners to build more units without additional infrastructure demands.
- Portland: Portland has led the way with financial incentives and waived fees for ADU construction, demonstrating how progressive policies can boost the housing supply.
ADUs: A Win-Win for Employers and Employees
ADUs provide win-win solutions for companies and relocating employees by increasing housing options, controlling costs, and improving the overall relocation experience. HR professionals managing employee relocation packages can benefit from ADUs in several ways:
- Greater Housing Availability: Employees moving to cities with ADU-friendly policies have more rental options in previously inaccessible neighborhoods.
- Cost Control: ADUs offer more affordable housing options, allowing companies to manage relocation budgets more effectively.
- Improved Employee Satisfaction: Employees with access to flexible, comfortable housing experience smoother transitions, reducing financial objections to relocation and reducing the risk of relocation failure.
Additionally, companies that promote ADU housing can position themselves as leaders in sustainable and community-focused relocation strategies, enhancing their employer brand and attracting top talent in competitive markets.
Conclusion: Leveraging ADUs to Improve Relocation Success
The US housing shortage presents a significant challenge for employee relocation programs—one that will not be resolved in the foreseeable future. ADUs offer a creative and practical partial solution. ADUs can provide more housing options, improve employee satisfaction, and control costs. The growing trend of ADU-friendly policies further supports this approach, expanding housing availability in high-demand markets and making relocation smoother for employers and employees.
At TRC Global Mobility, our employee-owners are committed to creating customized relocation packages that meet your needs and delivering the best possible relocation experience for your employees. This includes staying ahead of housing trends that can improve access to affordable homes. We’re here to help your transferees find the perfect place to call home.