Small home idea spreads: 5 iterations

Small homes are, well, small, but they do come in various iterations. Recently the website builderonline.com published brief but well-illustrated reports on five recently developed structures. Not surprisingly they vary in purpose and cost, and all have been guided by our patchwork municipal regulations, some of which are more ADU (accessory dwelling unit)-friendly than others.

First, in ADU-supportive Portland, Oregon, a 16x32-foot backyard ADU was constructed to allow older loved ones to age in place. The structure features a bedroom, full bathroom and multi-purpose living room, all designed to accommodate wheelchair-access and universally designed handles and knobs for arthritic ease of use.

In Vancouver, British Columbia, where ADU structures are known as laneway housing, a 935 square-foot cottage was constructed allowing for extended family entertaining and sleepovers. A modern kitchen and two bedrooms are included.

Iceland-inspired architecture underlies a set of Los Angeles structures that can be used in a variety of ways—guest house, home office, bonus room, studio or Airbnb rental. Interestingly, they are pre-fab, modular constructions using panels made of patented materials and, technically anyway, heralding a strong possibility for future ADU construction.

Outside the ADU “hotbeds” of Portland and Vancouver, Minneapolis has been leading the way in loosening up housing codes to further experimentation with small structures—in this case, permitting a two-story ADU, with the dwelling unit situated on top of a one-car garage. It is designed to fit in architecturally with the associated family home.

Though ADUs are often presented (particularly in this blog) as relatively low-cost housing alternatives for people on limited incomes, that doesn’t mean they can’t go high-end if so desired. This Minneapolis ADU has been custom-designed to a fare-thee-well, making absolute maximum use of all available space, at a price point of $250,000.

Rumbles of change

It is still early days for the small homes for aging concept, but it’s not too early to start thinking about it—especially with those rumbles of change we’re hearing more and more. Like an earthquake signaling its arrival with a few tremors and a muffled roar, so too does the idea of small homes as a new alternative for seniors and their families seeking safe, affordable housing. When the single family home can serve no more.

For example, the city of Minneapolis has attacked one of the major obstacles by being the first city in America to abolish single family home restrictive zoning throughout the city. The idea is to open up housing alternatives to young families, seniors and minorities priced out of the market for affordable homes meeting their needs.

This still has legal challenges to surmount, but small homes pioneers can take heart at this opening foray against a significant opponent. Stay tuned for further developments in the zoning wars.

Then there are those tiny home villages springing up in cities such as Kansas City, Seattle, Detroit and Nashville. Constructed in sets of a dozen or so, they are intended largely to address homelessness, particularly of military veterans living in those communities. Though politically sensitive, these tiny neighborhoods have found new homes, with prospects for serious growth. They open the possibilities for other potential residents of affordable housing.

Finally, recent reports in the news media indicate a growing awareness of a dramatic need for innovative senior housing. Long-term care insurer General Electric, for example—a relatively recent service line for this traditional American manufacturer—has developed coverage obligations of billions of dollars for their aging customers—some $15 billion covering 300,000 policies. Other insurers covering nursing home and assistive living services customers now reaching their 70s and 80s are encountering similar, nearly crippling obligations, posing a serious threat to the continuation of the long-term care insurance option.

Senior housing providers in general are starting to realize that the “Silver Tsunami” they’ve been awaiting of seniors in need is now only a few years away. The leading-edge of 74 million Baby Boomers, now just passing 70, will arrive at their true ages of need in their 80s. The gaping holes in affordability yawn ever closer.

Senior economist Chris Farrell summed up the situation in a recent newsletter discussing the issue: “I think Washington is going to learn the same lesson that GE and its investors learned the hard way. You can ignore this cost for a period of time, but eventually that bill comes due.”

The cost may, in fact, be unsustainable, and the only real solution will be affordable options.