Homeowner insights • October 2026 • Pekel Construction & Remodeling
Accessory dwelling units (ADUs) are gaining more attention as homeowners look for ways to add flexible living space. An ADU might be a separate small residence or a converted portion of an existing home, depending on the design and local requirements and restrictions.
According to the National Association of Home Builders (NAHB), 24% of remodelers surveyed reported starting an addition intended for use as an ADU during the previous 12 months, while 23% reported converting existing space. Those categories should not be added together because a remodeler may have undertaken both kinds of projects.
NAHB also found that ADU activity was less common in the Midwest than in other regions. Among reported ADU projects, 62% cost $150,000 or more. These are national survey findings, not estimates for a specific project in the Wauwatosa area.
For homeowners, the practical question is whether additional living space can improve the way a home serves changing needs. Before moving forward, it is important to examine zoning and permitting requirements, available space, utility connections, accessibility, and overall project cost.
Homeowner takeaway: Start with the intended use of the space and confirm local requirements before investing in a design.
Original research & attribution
A Quarter of Remodelers Started ADUs Over Past Twelve Months
By Eric Lynch | October 23, 2026
Source: Eye On Housing, National Association of Home Builders (NAHB)
This feature is original commentary and a summary of findings reported by NAHB; it is not a reproduction of or endorsement by NAHB.
