Housing is one of the biggest challenges people face today.

Smaller homes like ADUs and tiny homes solve a lot of problems for so many different people.

ADU stands for Accessory Dwelling Unit.

Did You Know?

  • In 1950, the average U.S. home was 983 sq. ft.
  • Today, it’s over 2,400 sq. ft.
  • Yet the average household has fewer people than ever.
  • Bigger homes = bigger mortgages, more upkeep, more debt.


With the incredible leaps in technology to instantly connect us to someone across the world or have information at our finger tips, society is more disconnected than ever.

We’re working longer hours to pay for more space and more stuff—most of which we don’t even use.

Debt piles up, free time disappears, and the joy of simply living gets lost. Instead of supporting our lives, our homes have started to control them.

My mission to promote adus and tiny homes

Disclosure: This post may contain affiliate links, meaning I can earn commissions. If you decide to purchase through my links, it is at no cost to you.

The Cost of Housing and Why It’s a Problem

After working in social services for over 20 years, I’ve seen a pattern: housing costs are the biggest financial burden for most people.

Lower-income individuals often spend up to 60% of their income on housing compared to higher-income earners.

When rent or mortgage payments take up the majority of a paycheck, people are left struggling to afford necessities like food, healthcare, and transportation.

As a real estate agent, I see this every day.

Many people can’t afford to live where they want—they’re forced to:

  • Move into areas that don’t fit their lifestyle or needs.
  • Stay with family longer than planned.
  • Remain in unhealthy relationships just because they can’t afford to move out.
  • Take on multiple jobs or extra work just to cover rent.
  • Live in overcrowded or substandard housing conditions.
  • Delays major life milestones like marriage, children, or retirement due to financial strain.
  • Relocate to distant suburbs, leading to long and costly commutes.

Tiny homes and ADUs provide an affordable alternative for people caught in these situations.

Why ADUs and Tiny Homes Make Sense

Tiny homes and ADUs solve problems for many different people by offering:

  • Affordable Housing – A lower-cost alternative for people on a limited income.
  • Rental Income – Homeowners can rent out an ADU to offset their mortgage or fund early retirement.
  • Downsizing Opportunities – Retirees can live simply while maintaining independence.
  • Independence for Young Adults – College students or young professionals can have an affordable, separate space.
  • Flexible Extra Space – Can be a short-term rental (like Airbnb), home office, or guest house.
  • Aging-in-Place Solutions – Families can house an aging parent instead of opting for a nursing home.
Realistic Alternative Housing Options to Save Money – Minimalist Living

Tiny Home vs. ADU

Tiny homes and ADUs serve different purposes:

FeatureTiny Home 🏡ADU 🏠
SizeTypically under 400 sq. ft.Can be up to 1,200 sq. ft. (varies by city)
MobilityCan be built on wheelsPermanent structure
Zoning RestrictionsOften limited to RV parks or tiny home communitiesUsually allowed in residential areas
Best ForPeople who want to travel or live off-gridHomeowners who want extra space, rental income, space for loved one

A tiny home is a great option for someone looking for mobility, adventure, or off-grid living, while an ADU is better suited for those who want a long-term housing solution or a rental opportunity on their existing property.

Living Smaller = Living Intentionally

Beyond cost savings, downsizing encourages a simpler, more intentional lifestyle. When you live in a tiny home or ADU, you:

  • Own fewer things and prioritize what matters.
  • Spend more time with loved ones instead of maintaining a large home.
  • Have more financial freedom by reducing housing costs.
  • Gain flexibility—whether that’s working less, traveling more, or retiring early.
Neon Signage

Future of Small Living: Trends & Innovations

The tiny home and ADU movement is growing fast, and innovations are making small living even more accessible:

1. Prefab & Modular ADUs 🏰

Pre-built ADUs that can be installed in weeks instead of months are on the rise.

2. 3D-Printed Homes 🔖

3D-printed houses cut down on building costs and waste. Startups are creating small, sustainable homes in a fraction of the time of traditional construction.

3. Off-Grid Tiny Homes 🌱

More people are choosing solar panels, rainwater collection, and composting toilets to make tiny homes self-sufficient and sustainable.

4. Cities Changing Zoning Laws 🏡

With housing shortages everywhere, more cities are approving ADUs and tiny home communities to create affordable housing options.

two person standing on gray tile paving

Personal Stories: Why It Works

I’ve seen firsthand how small homes change lives—especially in my own family.

Right now, we are building an ADU on my sister’s property for our parents to move into.

This decision was about more than just downsizing—it was about security, affordability, and family support.

By selling their home and moving into the ADU, my parents will free up their income giving them financial peace of mind in retirement.

At the same time, they will maintain their independence while being close enough to receive care and support when needed.

This setup allows them to age in place with dignity while staying connected to family. Instead of a costly and emotionally difficult move to assisted living, they’ll have their own space while remaining a key part of our lives.

This experience has reinforced just how impactful ADUs can be—not only for affordability but for fostering strong, supportive family connections.

Final Thoughts: Small Homes, Big Impact

Tiny homes and ADUs are a real solution to housing challenges. Whether you need affordable housing, rental income, or a sustainable way to live, smaller spaces offer big possibilities.

The future of housing isn’t about building bigger. It’s about building smarter, more efficient spaces that serve real people’s needs.

I look forward to continuing on this personal mission. 

Author
  • Erin Hybart Headshot Home

    Meet Erin, a real estate expert with a passion for Accessory Dwelling Units (ADUs) and tiny homes. She’s dedicated to helping homeowners explore creative, affordable housing solutions that maximize space and add value. As a licensed real estate agent in Louisiana, Erin guides clients through buying, selling, and flipping properties with a focus on smaller, more intentional living spaces. Her love for ADUs and tiny homes drives her to educate others on their potential as rental income sources, multi-generational housing, and unique lifestyle choices.

    View all posts
Share It!

Image Source: Canva, Pexels, Pixabay, Open Verse, Unsplash