Ep 79: Building Family Connections with Accessory Dwelling Units or ADUs with stanley acton

Nov 27

Written By Laura Lynch, CFP® ABFP™ AAMS® CDFA®

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In this episode of Less House More Moola, host Laura Lynch sits down with Stan Acton, founder of Acton ADU, to discuss the growing trend of multigenerational living, the financial benefits of Accessory Dwelling Units (ADUs), and how families can use ADUs as a long-term wealth-building strategy.

The Rising Demand for Multigenerational Living

Stan shares his journey into the world of ADUs, which started when a friend in government introduced him to the new housing legislation in California. As housing prices skyrocketed and affordability became a growing concern, he saw ADUs as a practical way to keep families together while providing both financial and lifestyle benefits.

From his 35 years in residential construction, Stan has witnessed the changing dynamics of family structures. Decades ago, extended families lived closer, often in the same home or neighborhood. However, as job markets spread families apart, the concept of aging in place or multigenerational co-living diminished.

Now, the trend is reversing. Families are recognizing the emotional and financial value of staying close, and ADUs provide the perfect middle ground—offering independent living spaces while maintaining family connection and support systems.

Why Families Are Investing in ADU’s

The affordability crisis, combined with an increasing desire for family security, is driving the demand for Accessory Dwelling Units. Homeowners are adding ADUs to:

House aging parents without the high cost of assisted living.
Give adult children a head start by providing affordable, independent housing as they transition from college to careers.
Create flexible housing solutions that can adapt over time (e.g., renting out the space when not in use).

Stan emphasizes that ADUs provide the best of both worlds: proximity to loved ones without sacrificing privacy. Unlike converting a spare bedroom, a detached ADU offers true independence while keeping families connected.

Financial & Wealth-Building Benefits of ADU’s

From a financial planning perspective, ADUs offer significant wealth-building opportunities. Laura and Stan discuss how these small housing units:

Increase property value – ADUs typically appraise for more than their construction cost, making them a strong long-term investment.
Create rental income opportunities – Some homeowners use ADUs as passive income streams by renting to tenants or traveling professionals.
Provide generational financial security – Families who invest in ADUs strategically can ensure multi-generational wealth preservation while reducing overall living costs.
Enable flexible housing solutions – Owners can transition between the main house and ADU as their needs change, making them a lifelong asset.

Stan notes that in recent years, homeowners have become more proactive in planning for multigenerational living rather than waiting for life events to force a decision. Working with financial advisors, estate planners, and contractors ensures that ADUs are structured for long-term wealth preservation.

The Psychological and Lifestyle Benefits of ADU’s

Beyond financial benefits, ADUs contribute to better quality of life. Stan shares real-life stories of homeowners who experienced:

Peace of mind knowing elderly parents were nearby and safe.
Increased family connection with more frequent visits and stronger relationships.
Greater independence for aging relatives who want their own space without feeling like a burden.
Security for younger generations who can save money on rent and build their financial future.

One of the most profound observations Stan has made is how ADUs empower their residents. Unlike moving into a guest bedroom, having a separate living space fosters a sense of dignity, independence, and autonomy.

Practical Considerations When Building an ADU

For those considering an ADU, Stan provides insights into the different types:

Stick-built ADUs (custom-built on-site)
Prefab ADUs (factory-built and delivered)
Modular ADUs (built in sections and assembled on-site)

He encourages homeowners to think long-term and choose an option that acts as a permanent housing asset, rather than a short-term fix like an RV or mobile home.

Final Takeaways: ADUs as the Future of Family Housing

Laura and Stan wrap up by emphasizing the future of multigenerational housing. As homeownership costs rise, ADUs provide a viable, cost-effective housing solution that fosters family integrity planning while building long-term financial stability.

For those in the Bay Area looking to explore ADUs, Stan’s company, Acton ADU, offers Build Ready ADUs—customizable, high-quality ADU designs that simplify the process for homeowners.

Laura also reminds listeners to check out the Services and Pricing at thetinyhouseadviser.com to start planning their own financial future.

For full show notes and more information visit: https://bit.ly/498m2sx