Pensacola Encourages Adoption of Accessory Dwelling Units
Property prices in Pensacola have been rising dramatically for some time now. Between March 2017 and March 2018 median list prices jumped by almost 24%, according to CNBC. Meanwhile, the median sales price is expected to increase by 7% by the end of this year. As such, property investors in Pensacola have come up with a plan, and it involves building accessory dwelling units on the land adjacent to the city’s current properties.
What is an accessory dwelling unit?
Accessory Dwelling Units (ADUs) date back to the early 20th century. They were built alongside family homes to house additional family members, such as extended family. These days ADUs have a range of names they go by, including granny annex, carriage house, garden cottage, and granny pod.
ADUs in Pensacola
To date, two workshops have been held in Pensacola to help educate locals on how ADUs could benefit them, as well as individuals seeking affordable accommodation in the area. More than 140 locals attended and obtained expert advice on how and why they should consider an ADU on their land. The opportunity for ADUs to improve the population and thus support Pensacola’s local economy was highlighted, as was the way that it would make property more affordable for people from all walks of life.
Building your own
Christian Wagley, who helped to organize the recent ADU workshops in Pensacola states that many property owners in the city are unaware that they can legally construct an ADU on their land. NW Ventures Group estimates that an ADU costs between $50,000 and $200,000. As such, existing homeowners may choose to tap into their home’s current equity to free up the cash required. Meanwhile, older property investors have the option of turning to a reverse mortgage to obtain the money needed.
One of the biggest benefits of Pensacola homeowners allowing ADUs onto their land is that the total value of their property will increase. This is advantageous as it opens up the opportunity of increased rental income or a bigger sale price should they ever opt to sell up and move on. Either way, the real estate market will benefit as there will be more types of accommodation for interested parties to choose from at different price points.
Real estate in Pensacola is booming. But to ensure that people continue to invest in property in the area, local experts are encouraging homeowners to build ADUs on their land so that both they and others gain from affordable housing and a supplementary income.