As housing prices continue to rise across Massachusetts, homeowners and buyers are rethinking how they use space. In towns like Andover and North Andover, where lot sizes are generous and homes are often built with extra square footage, a new housing trend is gaining ground — multi-generational living and accessory dwelling units (ADUs).

Whether it’s parents moving in with adult children, young adults living closer to family while saving for their own homes, or investors looking to generate extra income, multi-gen setups and ADUs offer flexibility that fits today’s evolving lifestyles. But are these arrangements here to stay — or just a short-term solution to a tight housing market?

1. What Is an ADU — and Why Is It Gaining Popularity?

An Accessory Dwelling Unit (ADU), sometimes called an “in-law suite” or “granny flat,” is a smaller, independent living space on the same property as a primary home. It can be:

• A finished basement or attic apartment

• A converted garage or detached unit

• Or even a small, purpose-built cottage on the same lot

In Massachusetts, ADUs have become increasingly popular as the state faces a housing affordability crisis. These units provide flexible housing options for extended family members or long-term tenants, while allowing homeowners to stay rooted in the communities they love.

And in suburban towns like Andover and North Andover, where zoning tends to favor single-family homes, ADUs present a way to add value and versatility without sacrificing the area’s classic New England charm.

2. Why Multi-Generational Living Is on the Rise

Across the U.S., multi-generational living has been growing steadily. A 2023 Pew Research study found that nearly 1 in 5 Americans now live in a household with multiple generations.

In Massachusetts, this trend is particularly strong in areas like Andover and North Andover due to:

• High housing costs that make shared living financially practical.

• Aging parents seeking proximity to family instead of assisted living.

• Young adults staying home longer while pursuing education or saving for a home.

• Cultural preferences that value family closeness and shared caregiving.

For many, combining households isn’t just about affordability — it’s about connection, convenience, and care.

3. The Zoning Puzzle: Can You Build an ADU in Andover or North Andover?

While the idea of adding a small apartment on your property sounds simple, zoning regulations can be a hurdle.

• Andover: The town has historically restricted secondary dwellings, but recent conversations around housing diversity have opened the door for more flexible zoning in certain residential districts. Homeowners typically need special permits and must meet lot size, setback, and parking requirements.

• North Andover: The town allows in-law apartments under specific conditions, such as owner occupancy and size limits (usually no more than a certain percentage of the primary home’s footprint). Detached ADUs, however, may face tighter review.

Local officials have begun to recognize that controlled ADU expansion could help address housing shortages and support aging-in-place goals. Homeowners considering an ADU should always check with the local zoning or planning board for the most up-to-date requirements.

4. The Financial Upside: Added Value and Income Potential

An ADU or well-designed multi-generational setup can be a significant value booster — both in use and resale.

Here’s why:

• Increased Property Value: Homes with finished in-law suites or rentable units often command higher resale prices. Buyers value flexibility and see ADUs as an investment.

• Rental Income: A separate apartment can bring in steady monthly income, especially given the strong rental demand in Andover and North Andover from nearby employers, colleges, and healthcare facilities.

• Lower Family Expenses: Multi-gen households share utilities, maintenance, and taxes — lowering the per-person cost of living.

However, homeowners should weigh construction costs, permit fees, and possible tax adjustments before diving in.

5. The Buyer’s Perspective: Growing Demand for Flexible Homes

Today’s buyers are prioritizing flexibility and future-readiness. Homes with finished lower levels, separate entrances, or detached guesthouses sell faster — and for more — than traditional layouts without those features.

In Andover and North Andover, where larger lots and colonial or contemporary homes dominate, many properties already have the space and infrastructure to adapt. For younger buyers, this means a way to grow into the home. For downsizers, it’s a way to stay near family without giving up independence.

Real estate agents across Essex County report rising inquiries about in-law apartments and flexible-use spaces — confirming that this is more than just a passing trend.

6. Trend or Long-Term Transformation?

While some might see ADUs and multi-gen living as a temporary response to housing costs, the reality is that they align with long-term demographic shifts. Massachusetts’ aging population, rising home prices, and changing household structures all suggest that this model is here to stay.

For Andover and North Andover — towns known for strong community ties, large homes, and adaptable zoning discussions — the potential for well-integrated ADUs is enormous. When done thoughtfully, these additions enhance neighborhoods without overwhelming infrastructure, while keeping families close and communities diverse.

So, is multi-generational living and ADU development in suburban Andover just a fad?
Probably not.

It’s a practical and emotional solution — one that fits the New England lifestyle and the realities of today’s housing market. For homeowners, it’s a chance to create long-term value and strengthen family connections. For buyers and investors, it’s a way to future-proof their purchase and tap into an evolving market trend.

In the end, Andover and North Andover’s spacious lots and community-minded character make them ideal places for modern living that respects traditional roots — proving that “togetherness” might just be the smartest investment of all.

Matt Witte strives to be the best realtor in Andover, MA.

Any questions about real estate, reach out to Matt Witte, Andover Realtor, MA