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Personal Finance

What is an ADU (accessory dwelling unit)?

Quick Answer

An ADU is a secondary self-contained living unit — kitchen, bath, sleeping area — on the same lot as a primary residence. Forms include detached cottages, garage conversions, basement units, and attached additions. Most U.S. states now allow ADUs.

Four common types of accessory dwelling units.
Warren Team
Updated April 26, 2026
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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