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NEWMARKET, N.H. — Ron Durand’s property, with just an extra mailbox to hint at it, hosts two homes. Above his garage lies a two-bedroom apartment, where his daughter and granddaughter reside, marking Newmarket’s first accessory dwelling unit (ADU) since the town relaxed its housing regulations last year.
ADUs, also known as granny flats or in-law suites, have been around for generations, but are now gaining attention as solutions for affordable housing challenges, even in rural areas. These units are more cost-effective to build than new single-family homes and face less opposition than larger housing projects. However, some residents express concerns about increased neighborhood density, which can lead to parking and traffic issues.
Newmarket, with a population of approximately 5,800, is witnessing changing attitudes toward ADUs. Previously, attempts to convert garage attics faced significant resistance. Now, the town’s planning department supports ADU development, lessening restrictions on their construction.
Durand acknowledges that ADUs aren’t suitable for every property but encourages more homeowners to explore the option. “Not all situations are probably this ideal,” Durand said. “This just happened to work out really, really well.” His neighbor is also building a small home on their lot, enabling downsizing and intergenerational living.
Durand’s ADU conversion cost about $300,000, a fraction of the nearly $900,000 price tag for new local condos. The apartment, with modern finishes, allows his daughter, Stacey Durand, to affordably stay in the community while her rent helps cover construction costs. “I couldn’t afford anything here,” she said.
Efforts to encourage ADU development are spreading nationwide. In the past few years, 14 states and Washington, D.C., have passed laws supporting ADU creation, according to the Mercatus Center at George Mason University. California, for instance, streamlined its permitting process in 2016, triggering an ADU boom. From 2016 to 2022, over 83,000 ADUs were permitted across California, with Los Angeles and San Diego being hotspots.
We just need to do a lot of different things. And this is just one piece of the puzzle that we can help jump-start and get people more affordable housing.
– Montana state Sen. Greg Hertz, a Republican
Montana state Sen. Greg Hertz, a Republican, supports ADUs as an affordable housing solution, having sponsored legislation allowing property owners to build ADUs and restricting municipal limitations. The Montana Supreme Court recently upheld this law despite challenges.
The ‘gateway drug’ for additional housing
ADUs, though not solving the housing shortage alone, can significantly impact it, says Jason Jordan of the American Planning Association. These units increase housing density without drastically altering neighborhoods, making them politically favorable. “I sometimes think of it as the gateway drug of zoning reform,” he stated.
Homeowners often build ADUs for rental income or to accommodate family members. The American Planning Association and AARP have collaborated on model ADU legislation, which more states might consider in upcoming legislative sessions. However, local zoning laws still frequently hinder ADU development.
In California, state laws have evolved to remove local barriers like parking requirements, making ADUs more feasible. Yet, resistance remains due to concerns about neighborhood impact. In Montana, a group opposed to densification argued that ADU legislation strips local control without addressing affordability.
Changing attitudes in New Hampshire
Bill and Gail Nostrom’s scenic New England property showcases the challenges of ADU development in New Hampshire. Despite wanting to create an apartment in their garage attic, restrictive local rules thwarted their plans. State Rep. Ellen Read has introduced legislation to make ADU creation easier, aiming to cut through cumbersome local regulations.
Newmarket has already eased zoning rules, reducing parking requirements and allowing detached ADUs. Other towns in New Hampshire, like Dover and Keene, are also promoting ADU development to tackle housing shortages. In Peterborough, town leaders host tours to demonstrate how ADUs seamlessly integrate into neighborhoods, highlighting their potential to contribute to local housing solutions.
This story was originally produced by Stateline, part of States Newsroom, a nonprofit news network supported by grants and donors.
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