The Vanishing Young Homebuyer: Why ADUs Could Be the Key to Homeownership

The dream of homeownership is slipping further away from young Americans. The median age of first-time homebuyers has risen from 28 in 1991 to 38 in 2024. Repeat buyers, once averaging 42 years old, now don’t purchase again until they hit 61. The trends are clear—people are buying later in life, and younger buyers are struggling to break into the market. But why? And more importantly, how do we fix it?

Why Are First-Time Buyers Struggling?

Several factors contribute to this dramatic shift:

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  Home Prices Outpacing Wages – The cost of a home has skyrocketed compared to income growth, making it harder to save for a down payment.

  
  


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  Limited Inventory – A chronic shortage of homes, especially in affordable price ranges, means buyers face fierce competition.

  
  


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  Student Debt & Inflation – Young buyers carry heavier financial burdens, limiting their ability to qualify for mortgages.

  
  


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  Stricter Lending Standards – Tighter regulations make it more difficult for first-time buyers to secure financing.

  
  

ADUs: A Game-Changer for Affordability

Accessory Dwelling Units (ADUs) offer a promising solution to this growing crisis. By creating smaller, more affordable living spaces on existing properties, ADUs can:

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  Increase Affordable Housing Options – ADUs allow homeowners to add rental income potential while providing entry-level housing for young buyers.

  
  


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  Help First-Time Buyers Offset Costs – Purchasing a home with an ADU means buyers can rent out the unit and subsidize their mortgage payments.

  
  


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  Support Multi-Generational Living – Families can live together while maintaining privacy, reducing the need for costly assisted living facilities or additional rental expenses.

  
  


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  Revitalize Communities – ADUs increase housing density without changing the character of single-family neighborhoods, creating more vibrant local economies.

  
  

The Laconia Perspective: ADUs Are Allowed, But Are They Feasible?

Laconia, NH, already allows ADUs, making it a forward-thinking community when it comes to alternative housing solutions. However, the perceived high cost of building or placing an ADU remains a significant barrier for homeowners who might otherwise take advantage of this opportunity.

What Can Be Done to Reduce ADU Costs?

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  Pre-Approved Design Plans – Implementing a system where homeowners can use pre-approved ADU blueprints could reduce architectural fees and streamline permitting.

  
  


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  Financial Assistance Programs – Providing low-interest loans, grants, or tax incentives could help offset high construction costs.

  
  


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  Community Partnerships – Collaborations between local builders, lenders, and policymakers could help create affordable ADU options.

  
  


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  Simplified Permitting Process – A more efficient approval process would lower the soft costs associated with ADU development.

  
  

The Role of SB84: Why It Matters

Currently, Senate Bill 84 (SB84) is being promoted as an important piece of legislation that could make housing development—including ADUs—more feasible by adjusting restrictive zoning laws.

Key provisions of SB84 include:

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  Reducing Minimum Lot Size Requirements – This would allow for more efficient land use, making ADU construction more viable.

  
  


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  Addressing Housing Affordability – By expanding the potential for smaller, more affordable housing solutions, SB84 aims to alleviate the housing crisis.

  
  


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  Encouraging Smarter Land Use – By removing restrictive zoning barriers, the bill opens the door for more diverse and attainable housing options.

  
  

The Path Forward

As first-time homebuyers continue to face increasing barriers, innovative housing solutions like ADUs offer a much-needed lifeline. They provide affordable housing, generate rental income, and support aging populations—all while making better use of existing space.

With the right policies, incentives, and awareness—such as the passage of SB84—ADUs can help turn the tide and restore access to homeownership for younger generations. Laconia and similar communities already have the zoning framework in place. Now, the focus must shift to cost reduction, financing support, and streamlined approvals to make ADUs a truly viable option for homeowners and renters alike.