What Is an ADU—And Could It Work for Your Property in Annapolis?

The Annapolis housing market has never been more competitive, and for many families, finding flexible space that works long-term has become a real challenge. That’s where ADUs—or Accessory Dwelling Units—are changing the game.

Whether you’re looking for space for aging parents, a returning adult child, a rental opportunity, or a private office or studio, an ADU might be the solution you didn’t know you needed.

What Exactly Is an ADU?

An ADU is a secondary residential unit located on the same property as a primary home. Think of it as a backyard cottage, detached in-law suite, or even a converted garage—complete with its own kitchen, bathroom, and living space.

While ADUs have been popular in states like California and Oregon for years, Anne Arundel County has recently updated its zoning laws to allow detached ADUs up to 900 square feet—a significant step toward solving housing shortages and supporting multigenerational living.

Why Are ADUs Gaining Popularity in Annapolis?

✔️ Multi-Generational Living: Many Annapolis families are looking for ways to keep aging parents or adult children close—while still giving everyone space and privacy.
✔️ Rental Income Potential: An ADU can provide additional income through long-term or short-term rentals.
✔️ Aging in Place: You can downsize into the ADU later, while allowing family to move into the main house.
✔️ Work-from-Home Flexibility: More homeowners are looking for dedicated offices or creative studios that are separate from their living space.

What You Need to Know Before You Build

Building an ADU is not as simple as putting up a shed in the backyard. Here are a few key things to consider:

  • Zoning and Lot Size: Not all lots in Annapolis qualify for an ADU. You’ll need to check setbacks, septic capacity (if not on public sewer), and lot coverage rules.

  • Design & Style: It’s important that your ADU complements the main home and neighborhood—though some homeowners do opt for a bold modern design.

  • Budget: Construction costs can vary widely, but a typical high-quality ADU can cost anywhere from $150,000 to $300,000+ depending on finishes and site work.

How to Get Started

If you're considering an ADU in the Annapolis area, your first step should be a site feasibility assessment. Partnering with a builder who knows the local codes—like Timberlake Design Build—can help you understand what’s realistic for your property.

You’ll also want to loop in a real estate professional (👋 that’s where I come in!) to make sure you’re making a smart investment from both a lifestyle and resale standpoint.

Final Thoughts

In a market where inventory is tight and flexibility is key, ADUs offer a creative way to maximize your property’s potential. Whether you’re housing a loved one, generating extra income, or planning for the future, this might just be the smartest move you make.

Follow me on Instagram @jenn.chino for more real estate insights and local home tips.

Watch the full conversation here: https://youtu.be/Iqcu5rwRHh4

Next
Next

Navigating the Complexities of Construction and Permits in Annapolis