What do you get when you have an onslaught of aging baby boomers, an affordability crisis, and a housing shortage? Granny pods – also known as guest suites, in-law suites, or accessory dwelling units. They are tiny homes that are either separate or attached to an existing home with shared utilities and are usually equipped with a kitchenette, bathroom, bedroom, and living area. For more on why they are gaining popularity, read on.

• Avoids the downsides of a retirement home – A granny pod can be a lot more affordable than a retirement home, while also making it easier for family to stay connected.
• Aging in place – An elderly person can continue to live on their property and rent out the main house to caregiving family or renters, enjoying the comfort of familiar surroundings.
• Childcare - Aging parents, if still in good health, are just steps away to help with childcare for their grandkids, saving money.
• Multi-purpose revenue source- Despite the name, granny pods can also be a place for adult children to live or used as a rental property for passive income.
  • Home value – For all the reasons above, granny pods can also increase the value of your home.

When considering a granny pod, take into account:

• Local zoning by-laws – There may be rules against additional dwellings on a property, but given the housing crisis many municipalities are moving towards more leniency with them.
• Family dynamics– Consider if everyone will get along overall. Discuss if meals will be separate or shared and if the grandkids can stop by anytime.
  • Unexpected costs – You may need to upgrade utilities, ready your yard, and include accessibility features (e.g., ramps, grab bars) that may increase your costs more than initially expected.