News Summary

Massachusetts is tackling the housing crisis by promoting Accessory Dwelling Units (ADUs) through the Affordable Homes Act. Homeowners can now build ADUs without family residency requirements and up to 900 square feet without special permits. This legislation is expected to lead to the construction of 8,000 to 10,000 ADUs in the next five years, aiming to alleviate the housing shortage with a target of 200,000 new housing units over the next decade, while maintaining compliance with local regulations.

Boston, Massachusetts – The state of Massachusetts is taking significant steps to tackle the ongoing housing crisis by expanding access to Accessory Dwelling Units (ADUs). These small living spaces, which can be built on the same property as an existing home, have faced various zoning restrictions in the past but are now poised to play a crucial role in increasing housing availability.

Under the new provisions of the Affordable Homes Act, which was enacted in August 2024, homeowners will be able to construct ADUs without needing family members to reside there. This change simplifies the previously complicated process of building ADUs, allowing them to be developed up to 900 square feet without requiring special permits. The new guidelines also establish that these units can be incorporated within existing structures, be attached to them, or stand alone, provided they have separate entrances.

The legislation also permits homeowners to rent out these units, offering a potential source of income while simultaneously addressing the scarcity of rental options. The Secretary of Housing and Livable Communities in Massachusetts highlighted the considerable confusion that existed prior to this act due to the varied regulations across different municipalities. The reformed stance on ADUs is aimed at making the housing market more flexible and accessible.

Estimates suggest that Massachusetts could see the construction of between 8,000 and 10,000 ADUs over the next five years, bolstering efforts to achieve the ambitious goal of creating 200,000 new housing units within the next decade to alleviate the housing shortage.

However, homeowners should be aware that constructing an ADU may lead to increased property taxes owing to a rise in property values. Local towns retain the authority to impose restrictions on the use of ADUs, and some are considering bans on short-term rentals, such as those listed on platforms like Airbnb.

Cost and Popularity

According to industry experts, including representatives from companies that specialize in ADU construction, the demand for these units is on the rise. The average cost to build one is approximately $300,000, with more upscale options reaching up to $500,000. With construction and regulatory practices being streamlined, homeowners are finding the process of adding an ADU to their property more achievable.

Regional Trends

Similar measures are being observed in other New England states aiming to align with the progressive ADU regulations seen in states on the West Coast. This reflects a broader trend of adapting housing policies to meet current demographic and economic challenges.

Local Implementation

To maintain compliance with state regulations, local municipalities are required to adopt the state-provided model bylaw that aims to expedite the ADU construction process. Importantly, communities will need to track ADU applications to ensure effective monitoring of these developments. Homeowners desiring larger ADUs than the state’s maximum may still do so, provided that municipal laws permit the enlargement, as long as they comply with zoning regulations.

The overarching objective of the recent changes in housing policy and the development of ADUs is to foster a housing market that prioritizes affordability, accessibility, and flexibility in Massachusetts. As the state moves forward with these regulatory reforms, it holds the potential not just to alleviate immediate housing needs but also to build a more sustainable living environment for its residents in the future.