Davey McEathron Architecture recently completed a stylish modern accessory dwelling unit for brothers, Eric and Patrick in Austin, Texas.

Affordability in East Austin

accessory dwelling unit in Austin

The brothers are recent college graduates who wanted to live in a hip part of East Austin, but rising real estate costs had made things less affordable.

They decided the only way it made sense was to buy a house with a large lot where building a granny flat was an option.

The property they bought is in an older Austin neighborhood going through rapid changes.

Renting Their Property

granny flat in austin texas

By building the granny flat in the back, they were able to keep the historic charm of the main house and create a modern open floor plan in the rear of the property.

They had intended to live in the main house, but they fell in love with the accessory dwelling unit.

They ultimately completed a light remodel of the original house and rented that and moved into the accessory dwelling unit themselves.

Struggling with… Trees?

Davey McEathron and Elliott Petterson of Davey McEathron Architecture helped them with everything from the feasibility of the project, which was a real challenge because of a large tree in the backyard, to the design and supervision of the construction.

helped them with everything from the feasibility of the project, which was a real challenge because of a large tree in the backyard, to the design and supervision of the construction.

granny flat in austin texas

When asked what the most challenging thing about architecture is, Davey responded emphatically, “Trees!” He went on to explain, “Austin is very protective of their trees and working around them or removing them is difficult or impossible in most cases.”

In the end, Davey came up with a clever engineering solution. They built a cantilevered slab foundation over the ½ critical root zone of the tree, so as not to harm the tree or its roots, which satisfied the City of Austin.

Accessory Dwelling Units in Austin Can Be Sold Separately.

Eric and Patrick spent $300,000 on their 1,000 square foot accessory dwelling unit in Eastern Austin, which might seem like a lot until you realize it can be subdivided and sold as a stand-alone home.

That’s right.

Lots with ADU’s can be subdivided and sold separately in Austin, Texas.

Before you get too excited, keep in mind, selling an accessory dwelling unit separately is illegal in most states, including California and Oregon.

Austin is Growing & Developers are Cashing In

granny flat in austin texas

Selling an ADU separately has created an interesting dynamic in a city that’s grown by 37.7% over the last decade.

Many developers are taking advantage of this opportunity and buying properties to develop a second property and then sell them both.

This might seem like a bad thing, but it’s a complex issue.

Davey explained, “It creates more affordable options in the market. I might not be able to buy a 2,300 square foot house, but an 800 square foot accessory dwelling unit is in my budget.”

It also opens up more inventory in highly desirable neighborhoods by increasing the supply available.

Ultimately, it comes down to an urban density issue.

Davey says, “We need to encourage density in the urban core – allowing people to walk, ride bikes, or take public transportation, instead of pushing people out to the suburbs and making our highways even more congested.”

Regulations in Austin

On November 19, 2015, the City council approved some significant changes to accessory dwelling development that relaxed restrictions and made it easier for homeowners to explore this savvy investment option. Read all about the rules and regulations in Austin, Texas.