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What Are Accessory Dwelling Units (ADUs)? A Guide for Vermont Residents
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Accessory dwelling units—commonly known as ADUs—are an increasingly important part of the solution to Vermont’s housing challenges. AARP Vermont is helping residents learn how these small but powerful housing options can expand affordability, support aging in place, and strengthen communities.
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What Is an ADU?
An accessory dwelling unit (ADU) is a small, independent home located on the same property as a single-family house.
ADUs can take many forms, including:
- Backyard cottages
- Garage apartments
- Basement or attic conversions
- Attached or detached in-law suites
These homes are fully self-contained, typically including a kitchen, bathroom, living area, and sleeping space.
Why ADUs Matter in Vermont
Like many states, Vermont faces a growing need for affordable, flexible housing options. ADUs are emerging as a practical solution because they can add new housing units without requiring large-scale development.
1. Expanding Affordable Housing
ADUs increase housing supply by creating smaller, lower-cost homes within existing neighborhoods. This approach allows communities to grow without significantly changing their character or landscape.
2. Supporting Aging in Place
Many older adults want to remain in their homes and communities as they age. ADUs offer a way to do that—providing a nearby, manageable living space while staying close to family or caregivers.
3. Strengthening Multigenerational Living
ADUs make it easier for families to live close together while maintaining independence. Whether housing aging parents, adult children, or caregivers, ADUs support flexible living arrangements that adapt to changing needs.
4. Creating Financial Flexibility
Homeowners can use ADUs as rental units, generating additional income to help offset housing costs or support long-term financial stability.
ADU Opportunities in Vermont
Vermont has taken steps to make it easier for homeowners to build ADUs and expand housing options statewide. State law allows homeowners to add an accessory dwelling unit to their property under certain conditions.
In addition, programs like the Vermont Housing Improvement Program (VHIP) help support the creation of new housing units, including ADUs. This program offers funding opportunities to property owners who agree to develop safe, affordable rental housing.
These policies and investments reflect a growing recognition that small-scale housing solutions can have a big impact.
How ADUs Benefit Communities
Beyond individual households, ADUs contribute to stronger, more resilient communities:
- Increase housing choices for renters and homeowners
- Support local economies by creating jobs in construction and design
- Promote community stability by helping residents stay in their neighborhoods
- Reduce sprawl by adding housing within existing infrastructure
Because ADUs are typically built on existing lots, they offer a more incremental and community-friendly way to expand the housing supply compared with large developments.
Bring the Conversation to Your Community
AARP Vermont is working with communities across the state to raise awareness about ADUs and how they can help address Vermont’s housing needs.
If your organization or community group is interested in learning more, AARP Vermont can host a presentation or community conversation on ADUs.
To request a presentation, contact Kelly Stoddard Poor at kstoddardpoor@aarp.org.
Learn More About ADUs
AARP offers a range of resources to help residents, community leaders, and homeowners better understand ADUs—from design and financing to policy and local examples.
Vermont-specific resources can also guide you through:
- Planning and design considerations
- Local zoning and permitting
- Financing and construction options
- Managing an ADU as a rental or family space
Resources:
- ADU Next Steps Checklist
- AARP ADU Resources, click here.
- ABCs of ADUs downloadable guide
- AARP VT's ADU Guide, specific for zoning regulation in Burlington.
- Vermont Housing Improvement Program – state grant program
- ADU Design at Yestermorrow, a non-profit Design & Build School in Waitsfield, VT
- The Triple Whammy of ADU Financials (And Why It Might Make Sense to Create an ADU Anyway)
- ADU Basics Slide Deck PDF version.
- Burlington, VT ADU Guide
- CVRPC Guide to Creating Accessory Dwelling Units
- State of Vermont ADU page
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