Multi-Generational Living: Build an ADU in Your Backyard

Hendren Custom Home
May 19
4 min read

Looking to expand your home’s functionality and boost its value? The answer may be in your own backyard—literally. Many people are choosing to build an ADU (Accessory Dwelling Unit), also called a multi-generational suite, on their property. It is one of the most strategic ways to add usable space, support multi-generational living, or even generate passive income.

An ADU or multi-generational suite built in a backyard in Indiana — A Multi-Generational Suite, or ADU, has several benefits and ROI.

Let’s explore the key benefits, logistics, and investment potential of adding an ADU to your property in NW Indiana.

What is a Multi-Generational Suite or ADU?

An Accessory Dwelling Unit (ADU) is a secondary residential space built on the same lot as a primary home. Often called a “multi-generational suite,” or “guest house,” these spaces can be attached or detached—and they’re becoming increasingly popular across the Midwest.

Why Should You Build an ADU in Your Backyard?

Building an ADU could be the perfect solution if you’re:

Preparing for aging parents
Looking for added rental income, or
Seeking more usable space.

While it may seem as easy as buying a pre-fab kit and setting aside a weekend to build an ADU, much more goes into the process. Here’s what you need to know before you get started.

Planning to Build an ADU: What to Know First

Zoning and Permits

Before building, you’ll need to:

Review local zoning laws in your city or township
Apply for proper building permits
Verify setback requirements, utility access, and maximum size allowed

Hiring a contractor for a project like building an ADU is an essential step in the process. Hendren Custom Homes is well-versed in permits, codes, regulations, etc. Avoid costly mistakes or potential fines by hiring experts to come on board a project like this.

Safety is key, and a contractor ensures that adhering to local zoning laws and codes is met every step of the way.

Design Options

There are multiple ADU types, depending on your needs:

Detached: A separate backyard structure
Attached: Connected to your main home
Converted Spaces: Renovated garages or basements

Size and Layout Considerations

ADUs range from cozy studio spaces to full-sized apartments with 1–2 bedrooms, bathrooms, and a kitchen. Keep in mind the purpose of the space when planning your layout.

Building an ADU may require digging equipment for laying pipes, cables, and other building materials. Hendren Custom Homes brings years of experience to the table when it comes to construction planning and building.

A multi-generational suite or ADU being built in a backyard — Hiring a contractor to build your ADU will ensure that safety and building codes are met.

What Are the Benefits of Building an ADU?

Multi-Generational Living

ADUs provide:

A safe, private, and accessible space
Can house aging parents, young adults, or guests
An ADU keeps your family close while still offering independence

Rental Income Potential

List your ADU on short-term rental platforms or rent it out for long-term housing. This passive income can offset mortgage costs or fund future renovations.

Flexible Year-Round Use

Use your ADU as:

A home office or remote work studio
An art or yoga space
A guest suite or event space
A cozy retreat

Increased Property Value

Adding an ADU increases square footage and functionality, raising resale appeal. It’s a wise investment in a growing market.

What Does It Cost to Build an ADU in NW Indiana? Average ADU Cost in the Midwest

Depending on the design and build type, you can expect to spend:

$40,000–$130,000 on average in NW Indiana
Detached builds typically cost more than conversions

What Factors Influence Cost?

Size and finishes
Plumbing and electric extensions
Foundation or slab work
Custom features like radiant heated flooring or accessibility upgrades

How Long Does It Take to Build an ADU?

Project timelines vary based on design complexity and permitting, but most ADU projects

are completed in 4 to 8 months from planning to move-in ready
Spring and summer are ideal for breaking ground and staying on track with weather-dependent timelines.

ADU Considerations

While an ADU may be considered a sizable investment, there are some more budget-friendly options to consider. What is the cheapest way to build an ADU?

Converted garages or basements often offer the most cost-effective solution
They rely on existing structures and utilities

Is it cheaper to build an ADU or add an addition?

It depends on your needs, but ADUs offer:

Flexibility, privacy, and potential for income
More versatile than a traditional home addition

Can I build an ADU for under $100k?

Yes. Smaller units or conversions can come in under $100,000
Work with experienced contractors who know how to maximize value

What’s one drawback of an ADU?

Permitting and zoning can be complex without the proper guidance
Working with a qualified builder is key

Hendren Custom Homes: Your Partner for Building an ADU

From concept to completion, Hendren Custom Homes brings experience, craftsmanship, and transparency to every project. We help you navigate zoning regulations, permits, and custom design options, ensuring your ADU is beautifully built, energy-efficient, and designed to suit your lifestyle.