A young woman builds three tiny homes in his backyard, rents them out, and earns over $5,000 in income
ADUs, or "backyard cabins," are gaining ground as a solution to Oregon's housing shortage.
Portland, Oregon resident Emilia Karas decided to become an amateur construction manager after the pandemic hit. In 2021, her city made it legal to add up to two accessory dwelling units (ADUs), commonly known as backyard cottages or granny flats.
Karas got to work, building two ADUs stacked on top of each other, a furnished manufactured home, and a tiny house in her backyard. For the past two years, she has rented out all three units while living in the main house with her wife. “I’ve always lived in a community like this. I love it. I think it’s very important,” she said.
These projects have generated considerable additional income for Karas. According to Business Insider, the homes also help expand affordable housing options in a city struggling with a significant housing shortage.
Karas, who works for the Oregon Department of Employment, charges $1,500 for the one-bedroom ADU, $1,850 for the two-bedroom ADU, and $1,200 for the tiny house on wheels, earning roughly $4,550 per month in total.
She estimates she spent about $300,000 to build the homes, a relatively low cost thanks to managing the projects and doing the interior work herself. Hiring a company, she says, would have cost around $500,000.
To help finance construction, Karas enlisted the support of a local nonprofit that offered low-interest loans in exchange for renting the units at affordable rates.
The tiny house on wheels cost her around $60,000, which she considers “an even more affordable option for people on lower incomes to have a truly safe and beautiful home.”
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This approach isn’t unique to Karas. Across the United States, more states are rewriting zoning laws to allow backyard housing. While these units alone won’t solve the urban housing crisis, they are helping to create more affordable options for both renters and buyers.
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