Why Aren’t More People Building ADUs in NYC Yet?
You’ve probably strolled past a Brooklyn brownstone or a single-family house in Queens and thought, “That backyard is huge.” Or maybe you have a finished basement that’s currently just storing old holiday decorations.
What if you could legally turn that area into an entirely new apartment - one you could rent out, let a family member live in, or even move into yourself while renting your main home?
That’s the magic of an Accessory Dwelling Unit (ADU). And yet… you don’t see your neighbors rushing to build one.
So what’s going on?
If these are such great housing opportunities, why isn’t all of New York City talking about, searching for, and building these small-space miracles?
That’s because they have only become a viable legal option in the past few months.
NYC Finally Said “Yes” to ADUs
For decades, the city was known as the City of No when it came to creative housing ideas.
Basements? Often illegal.
Backyard cottages? Forget about it.
That changed in late 2024, when the City of Yes housing plan was adopted, officially legalizing ADUs across most of New York City.
It’s a huge shift: the city now allows legal basement and cellar apartments, attic conversions in one-family houses, and even newly-built backyard cottages, all on the same property as your primary residence.
The goal is simple:
More housing opportunities mean safer, up-to-code homes and a more affordable city overall.
So, What’s Stopping You (and Everyone Else)?
Just because the city opened the door doesn’t mean it’s easy to walk through.
To start, the law applies only to owners of one- and two-family homes, and you must live on the property as your primary residence at the time of ADU Certificate of Occupancy issuance. This isn’t a loophole for investors to build mini rental empires; it’s designed for homeowners who want to add a unit while staying put.
There are also physical and zoning restrictions:
Maximum size of 800 square feet
Limited in historic districts or high-risk flood zones
Must be within 100 feet of the curb
Must have two exits for safety compliance
We’re still in the early stages of a major cultural and logistical shift. For most of NYC’s history, these conversions were at best a gray area, and at worst, a code violation nightmare.
It will take time for homeowners to build confidence in the process and for a specialized network of ADU-focused architects and contractors to emerge.
Final Thoughts
So why isn’t everyone looking for ADUs in NYC yet?
Because the rules are new, the process is unfamiliar, and trust still needs to be built. If you’re reading this, you’re already ahead of the curve. Your “useless” basement or that empty space in your backyard could soon become part of the solution to New York’s housing future, and that’s a pretty exciting place to be.