From millennial's to baby boomers, the severe housing shortage has become a significant impact on affordable long-term housing.  Rent costs continue to escalate.  Home values are rising faster.  The sacrifice of disproportionate rent makes saving for that home down payment insurmountable.

Baby Boomers need to take their next step as they enter retirement. Ideally, it means to stop working and live on fixed income. Healthcare and affordable long-term housing needs are paramount and the highest concern. The good news of living longer is dampen by financing it. Some of the choices are hard. Planning out housing may mean to relocate to more affordable geographies both domestically or internationally. It will certainly impact your lifestyle. For Baby Boomers, ADUs can present a couple of opportunities. A baby boomer can add an ADU to create rental income to supplement overall income. Rent out you current dwelling. You maximize your rental income by downsizing and move into the new ADU. Alternatively you can rent the new ADU to create attractive supplemental rental income.

Even homeowners worry when family members struggle for housing needs.  Parents entering retirement may struggle financially.  The struggle of siblings or returning adults may need temporary assistance.  There may be family members with impairments that have special long-term needs that are safe, accessible and affordable. 
ADUs can be a solution.  A 600 sq. ft. ADUs can cost around $120,000 that incurs $800 a month increase to your current mortgage payment.  The net effect is 1 bedroom unit is costing you $800 per month.  The market for a one bedroom apartment rental in San Diego is currently averaging $1,500.00.  That's affordable long-term housing.

Never has been a better time.  These changes results in major cost reductions.  Removal of off street parking, utilizing existing plumbing/gas/electrical services and major reduction in permit fees translates into saving of tens of thousands of dollars. 

• Off street parking not required within  a 1/2 mile of public transportation
• Utilize existing services from main dwelling (electrical, plumbing & gas)
• Sprinklers only required when present in main dwelling
• Reduction of permit fees proportional to ADU

Garage conversion ballpark cost are around $80,000.  New construction costs for granny flats start around $120,000.