Why ADUs Are Becoming a Smart Investment in South Florida

South Florida homeowners are showing more interest than ever in adding an Accessory Dwelling Unit, also known as an ADU, to their properties. These small additions are becoming popular driven by several converging forces.

·         Housing costs remain high

·         Economic pressures

·         Population growth and statewide regulatory changes

Model of ADU - IAD Miami

Outside Render 1 ADU - IAD Miami

Outside Render 2 ADU - IAD Miami

Inside Office/Bedroom Render ADU - IAD Miami

Inside Bathroom Render ADU - IAD Miami

Inside Kitchen Render ADU - IAD Miami

Some people want a private space for a parent or adult child. Others are looking for a quiet home office away from the main house. Many are exploring ADUs as income-producing rentals, especially in areas where long-term renters are always searching for well-located studio spaces.

The real estate market and local economy have also played a role in this shift. Housing costs remain high, and many people want options that give them flexibility without the commitment of buying a second property. An ADU lets homeowners make better use of land they already own, which can increase property value while also creating a steady source of rental income.

Across Florida, requests for ADU construction grew significantly between 2024 and 2025. Statewide permit data shows that Florida ranks #2 in the nation for ADU permits issued, accounting for 240,143 approved units, which is roughly 18% of all ADU permits granted across the United States.

Thousands of homeowners have already added legal backyard units or converted part of their existing homes to support multigenerational living or rental use. This rapid growth reflects a strong interest in practical, flexible housing solutions.

New State Law Simplifies ADU Construction for Homeowners

A major factor driving interest is recent legislation that encourages ADU development. New statewide rules require cities and counties to create clear guidelines that allow at least one ADU on most single-family residential lots. Homeowners now have a more predictable path when planning these types of additions.

The law also allows homeowners to use an ADU for rental income. Local governments can still enforce reasonable limits on size and design, but they can no longer block the creation of an ADU on eligible properties. This new structure has made it easier for residents to plan, design, and permit an ADU without navigating a complicated or uncertain approval process.

ADU Considerations in Miami-Dade and Broward Counties

Even with statewide guidance, each county has its own zoning requirements and property standards. Homeowners in Miami-Dade and Broward should keep a few key points in mind when exploring an ADU project.

Miami-Dade County

Many single-family neighborhoods qualify for ADUs, especially within the Urban Development Boundary. In most of these areas, a typical lot size of at least 7,500 square feet is needed. The allowed size of an ADU often ranges from about 400 to 800 square feet, depending on the zoning category. A separate entrance and utility connection are permitted, and some homeowners can streamline the process by selecting a pre-reviewed ADU layout from the county’s design library. These options help shorten review times and simplify compliance.

Broward County

Rules vary from one municipality to another. For example, some cities limit the ADU size to around 500 square feet or require the unit to remain smaller than half the size of the main home. Parking rules, setback requirements, and privacy standards also differ. Because Broward municipalities each have their own zoning code, homeowners should review their city’s requirements early in the planning phase.

Why More Homeowners Are Choosing ADUs

ADUs meet a variety of needs. Some families want private living space for a parent or young adult, which keeps loved ones nearby while giving everyone independence. Others want a dedicated home office that supports remote work. Many investors see ADUs as a practical way to create new income streams without buying another property.

From a financial standpoint, ADUs can add value to a home and help offset rising expenses. Long-term renters in South Florida consistently look for small, well-designed studios or one-bedroom units, which makes an ADU an attractive rental opportunity. As living costs rise, many homeowners view ADUs as a smart, long-term improvement that strengthens the property financially and functionally.

With clearer state regulations and growing demand for flexible housing, now is an ideal time to consider whether an ADU could benefit your home or investment plans.

IAD Miami Is Ready to Deliver a Beautiful and Fully Compliant ADU

Our studio has extensive experience designing and permitting ADUs across South Florida. These projects require knowledge of zoning rules, property size limitations, setbacks, and structural considerations. We guide clients through site planning, architectural design, permit drawings, and the approval process.

Whether you are exploring a detached unit, a garage conversion, or a connected addition, we can help you move from concept to completion with clarity and confidence. Call or email us to schedule a meeting!