What is the appeal of a mother-in-law suite?
There are myriad reasons to create a mother-in-law suite on your property. One of the most popular is intergenerational living, also known as living with your mother-in-law. In fact, 27% of buyers who bought a multi-generational home did so to care for an aging parent, 19% did so to accommodate children over 18 who were moving back in, and another 19% wanted to spend more time with aging parents. Another big reason, at 22%, is to save money.
Grandparents may even enjoy the role of on-call babysitter to spend more time with grandchildren.
Even builders are offering specific floor plans to accommodate multiple generations under one roof. For families who can afford it, major homebuilders are now offering “multigenerational” floor plans that make space for three or more generations.
Adams says of the trend, “I’ve sold at least 12 houses that had a mother-in-law suite to clients that are looking to house a family member. One recent client was looking for a home with a mother-in-law suite to accommodate her mother with kidney disease and provide in-home care because it was cheaper than finding a home for the mother to live in on her own.”
If you work from home but are in dire need of some separation between home life and work life, a mother-in-law suite may be perfect for you. One of the best things you can do for yourself if you work from home is to make a designated workspace. A mother-in-law suite can give you a separate workspace without actually leaving your house. And when you’re done for the day, turn out the lights and shut the door on your work email — and the rest of the to-do list, literally.
Depending on where you live, a mother-in-law suite could earn you some extra cash by listing it as a vacation rental on VRBO or Airbnb. If you live in a popular vacation destination, or if you live in an area with not many hotel options, that mother-in-law suite may end up paying for itself (and then some). When it isn’t rented, use the additional space for family and friends visiting.
Ruhoff’s Portland client built their ADU as a guest house but lists it on Airbnb to generate supplemental income when they’re not using it. “It had an occupancy rate of 91% in 2019 for the nights available and generated more than $15,000,” Ruhoff notes. But before you go all in, check your local ordinances to make sure short-term rentals are legal in your area.
Does a mother-in-law suite add property value?
If you decide to add a mother-in-law suite for an elderly parent or as a sleek home office, when you go to sell your home, you’ll find families looking for homes like these, and you may be pleasantly surprised by the return on investment. HomeLight’s survey reveals that 38% of agents consider home office spaces or dedicated remote work areas as the strongest selling point in their markets in 2024.
Adams recalls, “I listed a house with a one-bedroom mother-in-law suite recently, at $145,000. We ended up with 14 offers and it sold for $191,000.”
OK, I’m sold. How would I add a mother-in-law suite?
Before you get too excited about adding a mother-in-law suite to accommodate your office/yoga studio, she-shed/office, find out if it is legal. City and municipal zoning ordinances and permitting requirements can get in the way of this type of construction or renovation.
Size does matter. Ruhoff notes, “Mother-in-law suites or accessory dwelling units range in size from 300 to 1,000 square feet. But there can be city regulations to consider.” For instance, the city of Portland previously had an 800-square-foot maximum before it was updated to 1,000.
When you’re planning your design with a professional, think about your home and existing infrastructure that might allow for an addition like this and would require the fewest structural adjustments. Is there already a half-bath nearby that can be expanded? If you’re building to accommodate an elderly family member, which area of your property offers the easiest access? For example, an upstairs attic space might be too difficult to access.
Budgets vary widely depending on the taste and needs of a client. A basic renovation of a garage will cost approximately $7,000 to $30,000, whereas homeowners typically spend $5,000 to $35,000 for converting a walk-out basement into a livable suite. The investment for adding on a second master suite can cost anywhere between $8,600 to upwards of $100,000, while you can expect to spend up to $21,600 on a new accessory dwelling unit. For top-of-the-line finishes in a garage remodel turned mother-in-law suite, Ruhoff recalls a recent client who spent “$130,000 on amenities like a custom Murphy bed and designer tile.”
When discussing budgets with his clients, Ruhoff asks a lot of questions to hone in on the primary purpose of adding a mother-in-law suite: “How are they going to use it? Are they looking for rental income? Do they want a workspace with no separate bedroom? Or do they want to move a grandparent closer to the family?”
Once he knows the client’s goals, he has a clearer picture of how to move forward.
Costs can be managed by both design and material selection. And kitchens can be a major cost-driver. Ruhoff says a former client “spent $15,000 more on high-end appliances in the full kitchen because the unit was designed to be an income generator.”
If you don’t need a full kitchen, you’ll save money there. Ruhoff says, “A kitchenette, a sink, a two-burner stove, microwave, and small fridge will get the job done.” Another client wanted to create a space for her mom, but “thinks Mom will eat with the rest of the family most nights, so we designed a smaller kitchen space.”
With zoning regulations and navigating intergenerational living, making the decision to add a mother-in-law suite is not an easy one. But depending on your family’s needs, it could provide your home with added value. If you do decide to move forward, make sure you work with a licensed professional that can create the sleek office space you’ve always wanted or a cozy place for your mother-in-law to call home.
Header Image Source: (Artazum / Shutterstock)
