Backyard Cottages in NYC — Are They Possible Yet?
When you think of backyard cottages, you might imagine a fairytale scene somewhere in the English countryside. New York City? Not so much.
But as of late 2025, backyard cottages are finally becoming a reality. After years of zoning restrictions and red tape, detached Accessory Dwelling Units (ADUs) - yes, actual standalone homes in your backyard - are now legally possible in many parts of New York City.
In fact, if you live in Queens, you can now build a small house on your property. In Staten Island, you can even construct a detached studio in your backyard. That unused space can now become a fully habitable, rentable unit.
So, what are you actually allowed to build, and where? Here’s what you need to know before you start drawing up plans.
The Legal Breakthrough
For decades, detached backyard ADUs were illegal in NYC. Cellars? Sometimes.
Lofts? Maybe, if you had the right permits. But a brand-new cottage in your yard? Never allowed.
That all changed with the introduction of Appendix U to the NYC Building Code under Local Law 127 of 2024, which officially brought ADU regulations to life in 2025.
Now, owners of one- and two-family houses can apply to build backyard cottages, as well as basement and attic units.
This isn’t a pilot program or a future concept-it’s live, official, and active. The city is already accepting applications.
Where Can You Build One?
If you’re in the right zoning district, you can start the process as soon as you secure your permits.
Backyard cottages are not permitted in the following areas:
Historic districts
R1-2A, R2A, or R3A low-density zoning districts outside the Greater Transit Zone
The Special Bay Ridge District
DEP flood zones
If you own a one- or two-family home outside these restricted zones—especially in most of Brooklyn, Queens, the Bronx, and Staten Island—you’re likely eligible.
Tip: Check your zoning map first. Both the Department of Buildings (DOB) and the Department of Housing Preservation and Development (HPD) have online tools to help determine your eligibility.
Size, Height, and Yard Rules
How big can a backyard cottage be?
Under the 2025 regulations, detached ADUs can be no larger than 800 square feet, perfect for a studio or cozy one-bedroom unit.
They also cannot occupy more than 33% of your required rear yard area. For example, if your required rear yard is 20 feet, your backyard cottage can only encroach 6’ 8” into the required rear yard area.
In terms of height, backyard ADUs must comply with the NYC Zoning Resolution, typically allowing for one-story or one-and-a-half-story designs (often with a loft).
Safety, Permits, and the Paperwork Gauntlet
All ADU plans must be prepared and stamped by a Registered Design Professional (RDP) - either a licensed architect or engineer.
Your project must meet NYC Building Code, including Appendix U, and NYC Zoning regulations.
Additionally, if your ADU entrance isn’t visible from the street, you must post a sign reading “ADU” in at least five-inch-high red letters for emergency responders.
Utilities must also meet city standards. That means separate or fully integrated electrical, plumbing, and HVAC systems—no shortcuts or extension cords.
Should You Build an ADU?
A backyard ADU in NYC can serve multiple purposes:
A comfortable home for aging parents,
A private space for your adult child,
A rental unit generating $1,500–$3,500 per month, or
Your dream home office with a nap loft
Better yet, New York State is offering forgivable loans and grants for ADU construction through programs like the Plus One ADU Initiative, and NYC’s “ADU for You” initiative for providing homeowner resources is in progress, making the dream more accessible than ever.