For many clients I work with, the housing question has quietly doubled. It's no longer only "What's next for us?" It's also "What's next for Mom?" 👵 Assisted living waitlists are long, costs keep climbing, and many parents simply want to stay near family without giving up their own front door.
One option is getting more attention across Washtenaw County: the Accessory Dwelling Unit, or ADU.
🔑 What an ADU Is
An ADU is a small, independent home on the same lot as a primary single-family house. It has its own kitchen, bathroom, and entrance. There are four common forms:
🏠 Detached: a stand-alone backyard cottage or carriage house.
🧱 Attached: an addition built onto the side or top of your home.
🛋️ Internal: a converted basement, attic, or wing, often called an in-law suite.
🚗 Garage conversion: turning an existing garage into a livable apartment.
For an aging parent, the detached or garage-conversion options give real separation. You can be close enough to share dinner 🍽️ but still keep separate households.
📍 What Local Zoning Allows
Michigan has no statewide ADU law yet, so the rules come from each city and township. A bill that would limit how local ordinances can exclude ADUs, House Bill 5585, was introduced on February 24, 2026 and referred to the Committee on Government Operations. 👀 It's worth watching, but for now, local rules decide.
Ann Arbor has some of the clearest rules in the region:
📐 ADUs are permitted on lots with one single-family home. Lots under 7,200 sq. ft. can have up to 600 sq. ft., and larger lots up to 800 sq. ft. The ADU can't exceed the ground-floor area of the main house.
📝 No site plan, public hearing, or neighbor notice is required, but building permits are.
🚫 Rentals of less than 30 days are prohibited.
💙 The city's own stated goals include encouraging people to age in place or age with family nearby, and allowing an ADU to be used by an aging relative.
Chelsea updated its zoning to add detached ADUs and allow accessory structures to be used as dwellings. Dexter most recently amended the ADU section of its zoning ordinance in April 2026. In the surrounding townships, permits often run through the Chelsea Area Construction Agency, which serves Dexter, Lima, Lyndon, Sharon, and Sylvan Townships and the City of Chelsea. Ypsilanti, Saline, and other townships each have their own rules, so the first call ☎️ is always to your local planning office.
💰 What It Costs
Nationally, ADUs run from about $60,000 for a simple conversion to $300,000+ for custom detached construction, or roughly 150–600 per square foot. Locally, estimates put Ann Arbor ADU construction at typically 120,000–240,000. One architect-designed Ann Arbor backyard unit came in around $255,500. 🏗️ Prefab and modular units can reduce design fees and timelines. Internal conversions are usually the least expensive path.
🧾 Don't overlook taxes. In Ann Arbor, the Primary Residence Exemption is based on the percentage the owner occupies, the property is assessed similarly to a two-family rental, and the assessment increases for extra finish and kitchens.
⚖️ The Honest Trade-Offs
✅ Benefits: Your parent stays close with privacy intact. You keep an eye on things without a daily drive. Later, the unit can house an adult child, a caregiver, or a long-term tenant, and it can add to property value.
⚠️ Drawbacks: The upfront investment is significant. Zoning and permitting vary by municipality. Maintenance becomes yours. Needs also change: a unit that works for a 78-year-old may not work at 88 without planning.
🛠️ Four Steps to Get Started
1️⃣ Check local zoning: Confirm whether ADUs are allowed, and learn the size caps, setbacks, and parking rules.
2️⃣ Design and plan: Choose custom, prefab, or conversion. Build in aging-friendly features from the start: zero-step entry ♿, wide doorways, a curbless shower, and blocking for grab bars.
3️⃣ Permitting: Get building, electrical, plumbing, and zoning approvals before breaking ground.
4️⃣ Construction: Site prep, foundation, structure, and utility connections.
🤝 One More Conversation to Have
Before your parents contribute money toward construction, talk with an elder law attorney. How those funds are structured can affect estate plans and future long-term care eligibility.
An ADU isn't the right answer for every family. For some, it's the option that lets everyone stay independent, together. 💛 If you're weighing whether your property, or a new one, could support this kind of arrangement, I'm happy to talk it through.
Dani Hallsell, REALTOR®, SRES® | LIVgreat Real Estate
📞 734-623-9442 | ✉️ dani@danihallsell.com | 🌐 www.danihallsell.com
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