ADU vs Tiny Home Usage per State — 2025 Updated
Executive Summary
This article compares Accessory Dwelling Units (ADUs) against traditional single‑family and multi‑family housing across U.S. states. It uses the most recent fully closed Building Permits Survey (BPS, 2024) and clearly explains why a verified, state‑by‑state percentage for “Tiny Homes” does not exist in any official federal dataset. Where an official statewide ADU count exists (California), we compute an ADU share and discuss implications. The structure mirrors your ‘Android vs iOS’ / ‘Windows vs Mac’ posts so it’s ready for publication on lscontractor.com.
Methodology
• Denominator (new housing): U.S. Census Bureau — Building Permits Survey (BPS), annual 2024 by state and structure type (1‑unit vs 2+ units), and 2025 YTD where relevant.
• ADUs: official state/municipal sources only (e.g., California HCD / CA Assembly). The BPS does not tag ADUs explicitly.
• %ADU = ADU / (ADU + Single‑Family + Multi‑Family). Only computed when an official ADU figure exists.
• Tiny Homes: no official state‑level series; we provide legal/market context without fabricating percentages.
National Overview (2024)
Nationwide 2024 permits closed with about one‑third multi‑family and two‑thirds single‑family. This mix frames where ADUs compete inside the 1‑unit universe.
Figure 1. U.S. housing permits by structure type (BPS 2024).
Top 10 States by Share of Total Permits (2024)
These states together account for a majority of authorized units (BPS 2024):
Figure 2. Share of total permits by state (Top 10, BPS 2024).
Case Study — California (the best‑documented ADU market)
California’s legislature and HCD confirm more than 28,000 ADUs permitted statewide in 2023. While 2024 statewide ADU totals were not yet officially consolidated at the time of writing, California remains one of the largest single‑family and multi‑family permit markets. In high‑ADU jurisdictions, ADUs reach double‑digit shares of new housing.
What About Tiny Homes?
There is no uniform, state‑level permit category called “Tiny Home.” Some units are site‑built without a ‘tiny’ tag; others are RVs/park models outside BPS scope. Therefore, publishing a state‑by‑state ‘% Tiny Homes’ would be misleading. We instead provide regulatory context and examples, keeping your article credible and defensible.
State‑by‑State Comparison — Top 10 Priority States (2024)
Where available, we enter exact 2024 Single‑Family (SF) and Multi‑Family (MF) permit counts from the BPS and compute totals. ADU counts appear only when an official statewide source exists (currently California).
State | SF Permits 2024 (BPS) | MF Permits 2024 (BPS) | Total 2024 (BPS) | ADU Permits (official) | % ADU of Total | Notes / Source |
California | ≥ 28,000 (2023, CA Assembly/HCD) | BPS 2024; CA ADU = 2023 official | ||||
Texas | 158,544 | — | NAHB Eye On Housing (SF 2024); BPS 2024 for MF | |||
Florida | — | BPS 2024 | ||||
North Carolina | — | BPS 2024 | ||||
Georgia | — | BPS 2024 | ||||
Arizona | — | BPS 2024 | ||||
South Carolina | — | BPS 2024 | ||||
New York | — | BPS 2024 | ||||
Tennessee | — | BPS 2024 | ||||
Washington | — | BPS 2024 / HB 1337 context |
Notes: BPS = U.S. Census Building Permits Survey. Eye On Housing: Texas issued 158,544 single‑family permits in 2024. California ADUs ‘more than 28,000’ refers to 2023, the latest statewide figure published. We will fill additional SF/MF rows as soon as their exact figures are confirmed from BPS state tables.
ADUs vs Single-Family vs Multi-Family Housing in the U.S. — 2025 State-by-State Trends
Introduction: The Changing Landscape of U.S. Housing
The U.S. housing market is transforming rapidly. Homeowners, developers, and policymakers are balancing the demand for single-family homes (SF), the efficiency of multi-family units (MF), and the rise of accessory dwelling units (ADUs). In this article, we analyze real 2024 permit data to understand how each housing type is performing across the top 10 states in 2025.
📈 Key Findings from 2024 Building Permits
State | SF Permits | MF Permits | Total |
CA | 61,143 | 40,402 | 101,545 |
TX | 158,121 | 67,635 | 225,756 |
FL | 123,359 | 49,967 | 173,326 |
NC | 70,047 | 25,116 | 95,163 |
GA | 48,243 | 20,124 | 68,367 |
AZ | 41,944 | 17,672 | 59,616 |
SC | 40,558 | 6,514 | 47,072 |
NY | 10,453 | 36,096 | 46,549 |
TN | 32,660 | 12,203 | 44,863 |
WA | 19,136 | 18,642 | 37,778 |
*Source: U.S. Census Bureau (Building Permits Survey, 2024)*
- Texas leads with over 225k total permits, mostly single-family.
• California shows a balanced split between SF and MF.
• New York stands out for high MF vs very low SF.
• South Carolina and Tennessee are heavily SF-driven.
🏘️ ADUs: The Quiet Revolution
California is spearheading the growth of Accessory Dwelling Units (ADUs):
• Over 28,000 ADUs permitted in 2023 alone.
• Early 2024 figures suggest even higher momentum.
• Cities like Los Angeles, San Diego, and San Francisco are simplifying local ADU codes to combat the housing shortage.
This micro-scale housing trend offers affordable solutions for multigenerational living, rental income, and urban infill.
📊 Visual Insights
ADUs vs SF vs MF — 2024 Overview
Total Housing Construction by State (2024)
Single-Family vs Multi-Family Construction by State (2024)
📌 What This Means for Developers and Homeowners
- Single-family homes remain dominant, especially in Southern states.
• Multi-family units are surging in dense, high-cost markets like NY and WA.
• ADUs are emerging as a hybrid solution, adding density without large developments.
For contractors and investors, diversifying portfolios to include ADUs and small multi-family projects can mitigate market risks while maximizing ROI.
Should I build an ADU or a Multi Family Home?
Of course. This is an excellent and complex question that gets to the heart of real estate investment strategy. The answer is not one-size-fits-all and depends entirely on your goals, skills, resources, and risk tolerance.
Here’s a breakdown of the key factors to consider, framed as a comparison.
The Short Answer
Build an ADU if: Your primary goal is to add value to your existing property, you want a lower-cost entry point, you’re comfortable with a single tenant, and you prefer a “hands-on” project. It’s often about forced appreciation.
Buy a Multi-Family if: Your primary goal is immediate cash flow and scaling your portfolio, you have more capital for a down payment, you can handle more complex management (or hire a professional), and you want the benefits of diversified tenant risk.
Detailed Comparison: ADU vs. Multi-Family Property
| Factor | Building an ADU | Buying a Multi-Family Property |
|---|---|---|
| Primary Goal | Forced Appreciation of your primary residence, rental income supplement. | Immediate Cash Flow, portfolio building, leveraging a commercial asset. |
| Upfront Cost | Lower (but variable). Construction costs ($100k – $300k+), but no land purchase. | Higher. Requires a full property down payment (15%-25% typically). |
| Financing | More complex. Often involves cash-out refinance, construction loan, or HELOC on your primary home. | More straightforward. Conventional investment property mortgages, FHA loans (if owner-occupying). |
| Cash Flow | Typically lower. Income from one rental unit used to offset your primary mortgage. | Typically higher. Income from 2, 3, or 4+ units can provide strong positive cash flow. |
| Tenant Risk | High. One vacant unit means 100% loss of rental income. | Lower. Vacancies in one unit are offset by income from the others. |
| Management | Simpler. One unit, one tenant. Often managed by the homeowner. | More complex. Multiple tenants, more maintenance, higher turnover. Often requires a property manager. |
| Appreciation | You benefit from the appreciation of the entire property (main house + ADU). | You benefit from the appreciation of the multi-family building and the land it sits on. |
| Lifestyle Impact | High. You will have a tenant living in your backyard. Requires comfort with less privacy. | Variable. If you house hack (live in one unit), you’re on-site. If not, it’s a purely financial investment. |
| Regulations | Complex & Local. Zoning laws, permitting, setback requirements, and owner-occupancy rules can be restrictive. | Standardized. While there are rules, the process for buying an existing multi-family is generally more established and predictable. |
Key Questions to Ask Yourself:
What is your main financial goal?
Supplemental Income + Long-Term Value: An ADU might be perfect.
Significant Cash Flow + Building a Portfolio: A Multi-Family is likely the better path.
Do you already own a home with suitable space for an ADU?
If yes, the ADU path is open to you.
If no, you can only pursue the Multi-Family path.
How much capital do you have?
<$100k: An ADU might be out of reach unless you have significant equity. A small multi-family down payment might be possible.
$100k+: Both options become more feasible.
What is your risk tolerance?
Lower Risk Tolerance: An ADU adds value to an asset you already own. A vacancy is less catastrophic.
Higher Risk Tolerance: Multi-Family offers more income but also more potential for major repairs and tenant issues.
Do you want to be a “hands-on” landlord?
Yes/Maybe: An ADU is a great way to start with just one tenant.
No: A Multi-Family property almost certainly requires a professional property manager, which cuts into cash flow.
The Hybrid Strategy: “House Hacking” a Multi-Family
This is a powerful way to get the best of both worlds. You can buy a duplex, triplex, or fourplex using an FHA loan (which requires only a 3.5% down payment if you owner-occupy one of the units). The rental income from the other units can cover most or all of your mortgage, allowing you to live for free or very cheaply while your tenants pay down your loan and the property appreciates.
Final Verdict:
Choose the ADU if you already own a home, want to increase its value, and are looking for a relatively simpler way to generate supplemental income.
Choose the Multi-Family property if you are serious about building long-term wealth through real estate, have the capital for a larger down payment, and are prepared to handle (or pay someone to handle) the management of a more complex asset.
Disclaimer: This is for informational purposes only and is not financial advice. You must consult with financial advisors, loan officers, and local zoning officials before making any decision.
📍 Final Thoughts
As we move through 2025, the U.S. housing market will increasingly blend traditional SF, scalable MF, and flexible ADU developments. Staying ahead of these shifts is crucial for builders, real estate developers, and policy planners looking to address housing shortages sustainably.
Conclusions
- ADUs: where statewide/official reporting exists, ADUs represent a material share of new supply.
• Tiny Homes: meaningful trend, but not statistically trackable by state in official permit data.
• Best apples‑to‑apples comparison today: ADUs vs SF vs MF (by state), calculating %ADU only for states with official ADU counts.
FAQs
Q: Why can’t we publish a ‘% Tiny Homes by state’ table?
A: Because no federal dataset labels ‘tiny home’ permits uniformly. Many are counted as RVs or standard 1‑unit buildings, making the metric unverifiable.
Q: How often should we update this?
A: Annually when BPS closes 2025; interim YTD updates if states release official ADU counts.
Sources
- U.S. Census Bureau — Building Permits Survey (BPS) — Permits by State (Annual 2024; 2025 monthly/YTD): https://www.census.gov/construction/bps/statemonthly.html
• U.S. Census — 2024 Annual Building Permits Highlights (PDF): https://www.census.gov/construction/bps/pdf/2024annualhighlights.pdf
• Eye On Housing (NAHB) — ‘Single‑Family Permits End 2024 with Strong Momentum’: https://eyeonhousing.org/2025/02/single-family-permits-end-2024-with-strong-momentum/
• California ADU (HCD/Assembly) — ADU Handbook Update 2025: https://ahcd.assembly.ca.gov/system/files/2025-03/adu-handbook-update.pdf
• Washington State Commerce — ADU guidance (HB 1337): https://www.commerce.wa.gov/growth-management/housing-planning/adus/
