Building an accessory dwelling unit (ADU) may seem like the perfect way to add living space for an aging family member, guests or even rental income. But is an ADU the right solution for your budget and lifestyle? The answer depends on more than just lot space.
In our previous blog, we explored the types of ADUs and the local rules governing them in West Michigan. Sometimes called “Granny Pods,” when built for an aging family member, these units can be constructed from scratch or purchased as a modular home from a manufacturer. In this blog, we look at the decision from a homeowner’s perspective, using Tom Miller as an example of how budget, design and daily accessibility influence the best decision.
Meet Tom Miller
Tom Miller, a fictional 42 year old West Michigan professor, husband, and father of two, is looking for a housing option that offers both privacy and proximity for his aging father. With limited knowledge, he thought an ADU might offer the right balance.
His goal was clear: build an 800-square-foot, all-season structure complete with a kitchen, bathroom, and private entrance, where his father could comfortably age in place. With that list of needs, Tom began exploring what it would take, and the cost, to make it happen
Smaller Doesn’t Always Mean Cheaper
To Tom’s surprise, his smaller project came with a price tag nearly equal to building a much larger home. Most homeowners don’t expect this. The reason comes down to fixed costs. Regardless of size, an ADU still requires its own foundation, roof, kitchen, bathroom, utility connections, and heating and cooling system.
In West Michigan, many also want a garage or covered parking for winter, which adds another layer of expense. Because these costs don’t scale down much with square footage, the total budget can result in a higher cost per square foot as a standard home.


The Unexpected Barriers of Ice and Stairs
Tom is a life-long Michigander and knows that Michigan winters can make even a short walk across the backyard inconvenient—or unsafe—for an older family member. In this four-season climate, accessibility and weather protection are just as important as the construction budget.
While creative design can solve some challenges, accessibility often becomes a deciding factor. For example, Tom considered adding an ADU above his detached garage to save space, but it introduces stairs, which could be a long-term hurdle for his father.
Utility Requirements Can Add Complexity
Depending on local regulations, an ADU may require dedicated sewer, water or electrical service, each with separate connection and construction costs that could add thousands to your budget.
In Tom’s case, his existing home’s systems have adequate capacity, but his local municipal codes require separate meters for electricity and water. He winces at the cost but reasons that it could make renting out the ADU possible in the long term.
Where to Park?
Tom had a feeling that parking might also become a challenge. With two kids nearing driver’s training, his driveway was going to be full enough as it is. To make things more complicated, his street alternates parking during the winter to allow for plowing.
While Dad’s still driving, where would he park without adding a pad or lane to his driveway? And would caregivers be able to access it? The costs were starting to add up fast.
Balancing Budget With Best Fit
Many of us know a homeowner with needs similar to Tom’s – looking to balance care for an aging parent with the limitations of their existing home. The details differ, but the challenge of balancing budget, design and daily practicality is the same. An ADU budget can grow quickly once you factor in fixed construction costs, site conditions and ongoing living needs.
For some, an ADU remains a strong solution. For others, these considerations may point toward a different type of project, such as an addition or interior renovation. Make sure to research your area’s requirements, factor in additional costs and assess whether an ADU supports your long-term plans before moving forward. After all, the best choice is the one that fits both your budget and your lifestyle.

As always, we’re here to help! Connect with our team to discover how we can build solutions tailored to your specific needs.