Reimagining the American Dream: Tiny Homes as an Innovative Solution

June 28, 2023

The headline of a recent Forbes.com article suggests that so-called “millennials” - those persons born between 1981 and 1996 – are being forced to build tiny homes in their parents’ back yards due to what the authors call a “broken” housing market. While the article contains no reference to that group of 40- and 30 year olds, the authors are well to bemoan the chronic and rising levels of homelessness in the U.S. Regardless of what may be driving the trend toward more and more people being unable to afford housing, we agree that increasing the allowance of so-called Accessory Dwelling Units (ADUs) could lead to more housing – and arguably more affordable housing, for Americans who may be struggling financially. It is said that human nature – and by extension, the Law – “abhors a vacuum”, so putting unused property to efficient use that is respectful to the rights of others seems a worthwhile option to put more people into safe and healthy homes.

Historically it has not been an easy task to get permission to put an accessory living space on a property already occupied by a residence. As a result (ADUs) are relatively rare and continue to be difficult to legally establish. While a difficult housing market can present a barrier to home ownership, we see this trend as a means that millennials and others can choose to adapt to volatile economic conditions. Further, this trend could have profound implications for the future of housing, family, and community.

ADUs, also known as granny flats, backyard homes, or in-law suites, offer an alternative living solution that is not only financially accessible but also environmentally sustainable​1​. The rise of ADUs and the tiny house movement among millennials may not merely be a reaction to financial limitations, but a conscious choice driven by values of sustainability, simplicity, and family connection. Building an ADU requires planning, budgeting, and a significant investment of time and energy, which is far from an irresponsible decision. Indeed, it is a testament to the adaptability and resilience of this generation in the face of economic challenges.

The desire to live in proximity to family is another factor that may be driving this trend. For millennials who are starting their own families, having grandparents nearby can be a valuable resource for child rearing. In some instances, a child and the parents could switch places if the parents desire a greatly-downsized space and the larger home could be more appropriate for a child’s expanding family. As the authors themselves note, ADUs enable intergenerational living, providing space and privacy for younger people who may not be able to afford a larger single-family home​1​. In a society that often prioritizes independence over community, the choice to build a tiny home in one's parents' backyard can actually be seen as a reclamation of the traditional extended family structure. It is a return to the idea of a close-knit community that supports one another, but with a modern twist.

The movement towards ADUs and multi-generational living also challenges the notion that single-family homes are the only path to achieving the American dream. This concept was developed in a different time, under different economic conditions. Today, many millennials are questioning whether this model still holds up. They are forging their own paths and redefining what success and fulfillment look like for their generation.

However, the rise of ADUs is not without its challenges. Strict zoning policies that prioritize single-family housing and homogenize building plans are a significant roadblock. These policies restrict innovative solutions to housing and create an artificial scarcity of affordable living options​1​. In order to encourage the growth of ADUs and other alternative housing solutions, we need to reconsider these outdated zoning laws and make room for diversity and creativity in our housing landscape.

The trend of building tiny homes in backyards may be seen by some as a symptom of a broken housing market, but could be seen by others as a bold reimagining of what housing and family can look like in the 21st century. By choosing to build ADUs, millennials are not only finding ways to navigate economic challenges, but they are also fostering closer family ties, supporting sustainability, and potentially reinvigorating the concept of the nuclear family. We’ll prefer to see tiny homes not necessarily as a last resort, but as an innovative and forward-thinking solution to a changing world.

To find out how Stouffer Legal can help guide you through the process of making sure your home and any other assets are fully protected throughout your life and after your passing, you can click here to view our online Estate Planning, Asset Protection and Elder Law workshop.

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