Tiny homes and accessory dwelling units, or ADUs, have become a staple in today’s real estate landscape. Homeowners are looking for flexibility when it comes to living spaces, generating income, and growing their square footage. But, what’s the difference between a tiny home and an ADU? Read on to learn more.

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Table of Contents

• What is an ADU?
• What is a Tiny Home?
• What’s the Difference Between an ADU and a Tiny Home?
• Benefits of Building an ADU

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What is an ADU?

An accessory dwelling unit, or ADU is a secondary dwelling built on the same lot as a primary residence. It works just like a home and can be attached to the main house through a basement apartment or detached like a tiny home and range in size from 400 square feet to over 1000 square feet. ADUs are also known as in-law suites, granny flats, casitas, guest houses, backyard cottages, or AirBnBs. These units operate just like the inside of your house with standard hookups to sewer, water, and electric. ADU costs vary but most are between $100,000 and $300,000 depending on the size. On the whole they cost substantially less than North Carolina’s average single-home price of $332,265, according to Zillow.

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These units have skyrocketed in popularity in recent years due to their low cost of entry and varying uses. Plus, governments across the country have welcomed ADUs with open arms — altering building codes and developing new legislation to encourage the growth of ADUs and other multifamily options — as cities look to bring in more residents and more development to their neighborhoods and create solutions to nationwide housing shortages.

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What is a Tiny Home?

A tiny home is just what it sounds like: a home, but tiny and movable. These spaces typically come in at 100-400 square feet and have gained popularity due to their design for energy efficiency and the ability to be moved with a heavy-duty pickup truck.

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Tiny homes have typically been great for a nomadic lifestyle and can offer a more “off-the-grid” experience with solar powered electricity and storage tanks for water instead of a main line hookup. Pricing can vary widely on tiny homes depending on whether it’s more of a DIY build or a prefabricated space, but cost $30,000-$60,000 + on average, according to Business Insider.

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