A major housing change is making waves across Cape Cod, and it’s one that could bring big benefits to homeowners. Thanks to new state legislation, adding a secondary living space, known as an Accessory Dwelling Unit (ADU), just got easier.
If you’ve ever dreamed of adding a rental apartment, in-law suite, or flexible guest cottage to your property, now might be the time to act.
Here’s what to know about this housing trend, what the new Massachusetts law allows, and how Encore helps homeowners bring it to life.
What Is an ADU?
Accessory Dwelling Unit or ADU, is a small, self-contained living space located on the same lot as a primary residence. It can take many forms:
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A converted basement or attic inside your home
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An addition with a separate entrance
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A backyard cottage or garage conversion
As of February 2025, Massachusetts law now allows ADUs up to 900 square feet to be built by right in single-family zoning districts. That change gives homeowners more flexibility without the need for a special permit or zoning variance.
Why ADUs Are Gaining Momentum?
Creates Space for Family
Whether it’s an aging parent, a returning college grad, or extended family visiting for the summer, an ADU provides independence with connection.
Adds Long-Term Value
Well-designed ADUs can boost property value and expand how your home functions now and for future buyers. They are also an appealing rental option in Cape Cod’s competitive housing market.
Supports Aging in Place
For those looking to downsize without leaving their neighborhood, moving into a smaller ADU and renting out the main house is a smart way to stay rooted in the community.
Provides Extra Income
ADUs create an opportunity for rental income that can help offset property taxes, maintenance, and more without sacrificing privacy.
A Few Things to Keep in Mind
While the new law makes ADUs more accessible, building one still requires careful planning. You’ll want to consider:
Location and Layout
Where on your lot does it make the most sense to build? Whether detached or attached, the layout should enhance your property’s flow, not disrupt it.
Permitting and Septic
Although zoning is now streamlined, you may still need site plan review, septic evaluations (especially for detached units), and coordination with local departments.
Design that Fits
An ADU shouldn’t look like an afterthought. The best designs complement your main home both in scale and style. That’s where Encore’s design and build process makes a difference.
Small Footprint, Big Opportunity
ADUs don’t need to be large to have a meaningful impact. A compact design with natural light, thoughtful storage, and energy-efficient features can feel just as comfortable as a larger home. Some ideas we love:
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Backyard guest cottage with its own patio
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Garage conversion turned into a private studio
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One-bedroom addition with an open-concept living area
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Walk-out basement transformation for long-term stays
At Encore, we’ve helped homeowners across the Cape make the most of their space, often with creative, right-sized solutions like these.
What Makes an ADU Work?
Here are a few questions to guide your planning:
Who will use the space and how?
Whether it’s for rental, guests, or multigenerational living, the intended use shapes the layout, entry access, and interior finishes.
What level of privacy is important?
Separate entrances, sound insulation, and thoughtful landscaping can make even shared-lot living feel peaceful and private.
How can it adapt over time?
Good ADU design considers both today’s needs and tomorrow’s possibilities, like converting a rental into a home office or aging-in-place suite.
Q&A: Common Questions About ADUs
Do I need a large lot to build an ADU?
Not necessarily. Many Cape Cod homes can accommodate an ADU within an existing structure or on a modest backyard footprint. Our team can assess your property and walk you through the options.
Can I rent the unit out?
Yes. Long-term rentals are allowed without any requirement that the tenant be related to the homeowner. Local rules may vary on short-term rentals, so it’s worth checking with your town.
Will I need to update my septic system?
In some cases, yes, especially for detached units. Title V requirements still apply. Encore works with local engineers to make sure everything is compliant from the start.
How long does it take to build?
Timelines vary by project, but most ADUs take 4 to 6 months from design to completion. With by-right zoning in place, permitting is often faster than before.
Let’s Start the Conversation
Thinking about creating a rental suite, downsizing on your own property, or simply making your home work harder for you? The new ADU law makes it easier, and Encore is here to help every step of the way.
We take the time to understand your property, your needs, and your long-term goals. Then we design and build a space that fits beautifully.
Let’s explore what’s possible right in your own backyard.
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