When Sarah and David bought their home in 2020, they locked in a mortgage rate just under 3%. It was a deal of a lifetime, especially with today’s rising mortgage rates and housing prices. Fast forward four years, and their family has grown—what used to be a spacious three-bedroom home now feels cramped with two kids and visiting relatives. Moving to a larger home, however, isn’t an appealing option, especially when today’s mortgage rates hover around 7%. Selling their home would mean losing their current low rate and taking on a much higher monthly payment.

For realtors working with clients like Sarah and David, the challenge is real. How do you help families gain the space they need without pushing them into a financial decision that could cost them more in the long run? The answer might be simpler than you think: Accessory Dwelling Units (ADUs).

Rising Housing Costs and Mortgage Rates

The housing market has dramatically shifted in just a few short years. According to Freddie Mac, the average 30-year fixed mortgage rate rose from around 2.68% in December 2020 to over 7% in 2023. In tandem, home prices have soared, making it increasingly difficult for families to upsize without stretching their budgets. The cost of selling a home with a sub-3% mortgage, only to take on a significantly higher rate for a new home, is deterring many homeowners from moving altogether.

So, what can you, as a realtor, offer your clients who need more space but want to hold on to their favorable mortgage terms? This is where ADUs shine.

The Value of Building an ADU Instead of Moving

Accessory Dwelling Units, or ADUs, are small, self-contained living spaces that can be built on an existing property. Whether it’s a casita, a guest house, or a separate suite, ADUs provide a flexible and cost-effective way for families to expand their living space without moving or sacrificing their low-interest mortgage.

Here are three key reasons why ADUs make sense for your clients:

1. Cost-Effective Expansion  

   Instead of taking on a new mortgage at today’s rates, building an ADU allows your clients to keep their sub-3% mortgage while adding much-needed space. The cost of constructing an ADU is generally lower than the costs associated with selling, buying, and moving to a new home in today’s market.

2. Additional Family Space  

   With multi-generational living on the rise, ADUs offer an ideal solution for families who need to accommodate aging parents, adult children, or visiting relatives. Your clients can keep everyone close without sacrificing privacy or comfort.

3. Increased Property Value  

   Beyond providing additional living space, an ADU adds long-term value to the property. Zillow reports that homes with ADUs can sell for up to 35% more than homes without them. So not only are your clients solving their immediate space needs, they’re also making a smart investment for the future.

At Tiny Homes of Tucson, we specialize in creating beautifully designed ADUs that blend seamlessly with your client’s existing property. From cozy casitas to modern guest houses, we work with families to create the perfect space tailored to their needs.

Tiny Homes of Tucson: A Solution for Realtors and Their Clients

As a realtor, your goal is to help your clients navigate the complexities of the housing market while offering solutions that fit their needs. Recommending an ADU is a win-win: it provides your clients with the extra space they’re seeking while preserving their low-interest mortgage. And when they’re ready to sell, the ADU will only enhance the value of their home.

Whether your clients are looking for more space for family members, or they want to create a rental income stream, Tiny Homes of Tucson is here to help. We guide homeowners through every step of the process, from design to construction, ensuring that their ADU is both functional and aesthetically pleasing.

Are you working with clients who need more space but want to keep their low mortgage rate? Book a call with Tiny Homes of Tucson today to explore how we can build a beautiful casita, guest house, or ADU that will meet your client’s needs—without the cost of moving.

Ready to offer your clients a solution that saves them money and provides additional space? Schedule a consultation with us and let’s discuss how ADUs can transform their property and lifestyle.