Issue 21
If you are helping a buyer find a great property in which to build an ADU, one feature that should be at the top of your property search checklist is an alley. The presence of an alley can transform what might be a complicated project into a streamlined opportunity with the potential for higher rents or higher price point if condoization is desired. While primary residences fronting streets follow conventional development patterns, ADUs with alley access offer unique advantages that can save construction costs, promote design flexibility, offer functional privacy, and build long-term property value.
THE COST EQUATION
Alley access fundamentally changes the economics of ADU construction. When a property has rear alley access, costs can be reduced due to construction access. There are several examples that we can look at:
Access Costs
Imagine two properties – one with a primary residence at the front that spans almost the full width of the property, with maybe 10’ on one side. All equipment and building materials have to fit through that space if that is the only access. That means if a larger excavator is needed, but that more-efficient one won’t fit, then the less-efficient, smaller one would be used which could drive up costs. Maneuverability is king when it comes to construction!
Material Access
Construction requires material deliveries and waste removal. Residences without alley access force all this activity through residential streets, annoying neighbors and potentially damaging landscaping. Alley access keeps construction chaos in the back, maintaining front-yard aesthetics and neighborhood goodwill.
Modular or Pre-Fab Access
Considering a modular or pre-fabricated unit? Access via an alley could make things a lot easier!
Utilities
Depending on how utilities are laid out (as a real estate professional, you should know how to access this information – ask your city planning professionals if you need help), it may be easier to access from an alley and in fact, in an alley may be where these utilities are located. That is ideal rather than having them trenched through front yards and under driveways with no need to cut through established landscaping or pay premium prices for boring under concrete. Not all cities or even neighborhoods have infrastructure laid out in alleys versus in the street, so this warrants investigation.
Parking and Driveways
Although some cities are doing away with parking requirements for ADUs, and in some cases the new ADU may be close enough to transit to not require parking in the first place, some municipalities require off-street parking for new dwelling units. Alley-accessed ADUs naturally accommodate parking in the rear which can preserve valuable building square footage.
Want to learn more about little design tweaks that can make a big difference in terms of price for both a listing AND potential rent income?
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- Designing and Building an ADU
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DESIGN FREEDOM AND PRIVACY
The spatial dynamics of alley access create additional design opportunities for ADUs including:
