Granny flats, also known as accessory dwelling units (ADUs), have emerged as a potential solution to alleviate the U.S. housing shortage.

The small, self-contained living units are typically located on the same property as a main residential structure and provide an additional dwelling space. The name "granny flats" originated from their historical use as homes for elderly family members, particularly grandmothers, who wanted to stay close to their loved ones while still enjoying a degree of independence. But they're not just for the elderly anymore.

The U.S. housing crisis is a pressing issue, with a shortage of affordable homes affecting various aspects of Americans' lives and livelihoods. One significant factor contributing to the crisis has been the limited availability of homes, which has prevented housing prices from experiencing significant declines despite Federal Reserve interest rate hikes that resulted in soaring mortgage costs.

The scarcity of affordable housing has far-reaching implications. For many individuals and families, it means being unable to access the first rung on the ladder to building wealth through homeownership. The threat of homelessness looms for those who struggle to secure stable housing. The housing shortage not only affects individuals but also has a broader impact on the overall economy.

ADUs provide an opportunity to increase housing density without significantly altering the visual character of neighborhoods. They offer a viable option to meet affordability targets while maintaining the aesthetic appeal of communities.

They come in various sizes, typically ranging from 430 to 690 square feet, depending on the design and layout. They are designed to provide essential amenities, including a kitchen, bathroom, storage and built-in appliances, ensuring a comfortable living experience in a compact space.

They can accommodate a wide range of needs and can evolve alongside a person's changing circumstances throughout their lives.

ADUs can serve as spaces for enabling independent living for elderly or disabled people, providing temporary housing for college graduates, offering a dedicated and productive home office for remote work and generating income through short-term rentals.

Platforms like Jurny, an artificial intelligence (AI)-powered property management solution, streamline the operational aspects of managing short-term rentals, making it easier for homeowners to capitalize on their income potential. With backing from prominent venture capital firms such as Mucker Capital, Okapi Venture Capital, VITALIZE Venture Capital, Singularity Capital and SaaS Venture Capital, Jurny has secured over $13 million in funding.

The pricing of these tiny dwellings makes them an attractive alternative for many individuals and families. When compared to the soaring median home prices in certain areas, such as Orange County, California, where the median listing price reached $1.2 million or San Bernardino, California, with a median sold home price of $488,000, ADUs offer a more affordable option.