Is this the year of the ADU?

Portland ADU Development in 2025: What You Need to Know

Portland’s System Development Charge (SDC) fee waiver for Accessory Dwelling Units (ADUs), which expired in **July 2018**, was a game-changer for many families looking to build affordable additional living spaces. The waiver saved homeowners up to **$17,000**, making ADU construction more accessible and encouraging solutions to Portland’s housing shortage. Although the waiver is no longer in place, ADUs continue to grow in popularity as a versatile and valuable addition to residential properties.

Even without the SDC waiver, ADUs remain a top choice for homeowners seeking to create additional rental income, house extended family, or invest in long-term property value. Portland’s ongoing housing demand and support for innovative housing options make ADUs a practical and forward-thinking solution for modern living.

The ADU Market in 2025

Despite the increased cost of building ADUs since the waiver’s expiration, demand remains strong. Whether used for **long-term rentals**, **short-term stays**, or **multi-generational housing**, ADUs are widely recognized as one of the best investments homeowners can make in their properties.

However, building an ADU does require navigating complex regulations and higher upfront costs compared to simpler options, such as stand-alone Guest Suites. For homeowners who want a more budget-friendly alternative, Guest Suites—detached units without full kitchens—can still generate income on platforms like Airbnb or provide much-needed private living space.

Why Build an ADU in 2025?

ADUs are more than just an investment—they’re a flexible housing solution for a variety of needs. Here’s why they continue to make sense for Portland homeowners:

Rental Income: ADUs can generate reliable income, whether through short-term or long-term rentals.

Multi-Generational Living: An ADU is perfect for housing aging parents, adult children, or other family members, creating independent living arrangements while keeping loved ones close.

Property Value: Adding an ADU can significantly increase the resale value of your home.

Sustainability: ADUs provide more housing options within the city without contributing to urban sprawl.

Navigating the Process

At SQFT Studios, we specialize in guiding homeowners through the challenges of ADU construction. From zoning requirements to permitting, we’re here to help you every step of the way. If you’re unsure where to start, check out the resources on our website or contact us directly for advice.

Guest Suites: An Alternative Option

For those with tighter budgets or simpler needs, stand-alone Guest Suites are an excellent alternative. While they lack the kitchen facilities required for a full ADU, they’re highly popular on platforms like Airbnb and offer a more accessible entry point into adding flexible living space to your property.

Let’s Build Your Vision

Whether you’re ready to start your ADU project or want to explore options like Guest Suites, the time to plan is now. Portland’s housing challenges continue, and homeowners who invest in innovative solutions like ADUs are helping build a more sustainable future for our city.

Contact SQFT Studios today to learn more about how we can help make your vision a reality.