Across the country, and especially in lifestyle markets like Western North Carolina, buyers are increasingly searching for homes with second living quarters: in-law suites, basement apartments, garage apartments, guest cottages, ADUs (accessory dwelling units), and fully finished spaces over a detached garage.
These aren’t just “bonus rooms.” They’re flexible, self-contained spaces with their own entrance and often a kitchen or kitchenette, bathroom, and living/sleeping area. Think: tiny home meets guest suite, on the same property as the main house.
And demand is surging:
17% of all homebuyers purchased a multigenerational home between July 2023 and June 2024, the highest share ever recorded by the National Association of REALTORS®
- Generation X and younger Baby Boomers are leading the way, with about 21% of Gen X buyers and 15% of younger Boomers opting specifically for multigenerational setups.
Nationally, homes with functional ADUs have shown faster price growth and can command premium resale values, with industry estimates often in the 20–30% added value range for well-designed, permitted units.
In a market where affordability, flexibility, and long-term planning matter more than ever, second living quarters have gone from “would be nice” to “deal-maker.”
What Exactly Is a “Second Living Quarter”?
“Second living quarters” is a broad term, but most buyers are looking for some version of:
Accessory Dwelling Unit (ADU) – A separate living unit on the same lot as the main home. It can be attached (basement, over-garage, side addition) or detached (small cottage, studio, tiny home).
- In-Law or Multigenerational Suite – A portion of the main home designed for another household member: bedroom, bathroom, sometimes a kitchenette and private entrance.
- Guest or Rental Apartment – A finished basement or over-garage apartment with its own bath and living area, sometimes a full kitchen.
Researchers estimate there are at least 1.6 million ADUs in the United States, and that number is growing rapidly as cities and counties look for creative ways to add housing without sprawling development.
Why Buyers Want Homes with Second Living Quarters
1. Multigenerational Living with Privacy
The biggest shift driving this trend is multigenerational living.
According to NAR, cost savings, caring for aging parents, and having adult children move back home or delay moving out are top reasons buyers choose multigenerational homes.
A second living quarter allows:
- Aging parents to live nearby but maintain independence.
- Adult children to save for their own home while having their “own place.”
- Siblings or extended family to share one property without sacrificing privacy.
Instead of choosing between expensive senior living, student housing, or long commutes, families can pool resources and share one property, while still closing the door to enjoy peace and quiet.
2. Built-In Rental or House-Hacking Potential
A well-designed second living quarter is also an income-producing asset.
Depending on local rules and HOA/covenants, these spaces can sometimes be used as:
- Long-term rentals
- Mid-term rentals (travel nurses, remote workers, visiting professors)
- Space for a roommate with more privacy than a traditional shared home
Industry sources consistently note that ADUs can boost property value by 20–30% and create a separate rental income stream without the owner having to buy a second property.
For buyers concerned about today’s interest rates or long-term affordability, a second living quarter can be the difference between a home that feels tight every month and a home that mostly pays for itself.
3. Aging in Place & Future-Proofing
A second living quarter can also be your future Plan B (or C):
- Live in the main home now and let a parent, adult child, or tenant use the secondary space.
- Later, downsize into the second living quarter yourself and rent out the larger main home for income.
- Or bring in a caregiver, family member, or nurse who can live on-site but not underfoot.
This “future-proofing” is a big reason older buyers and pre-retirees are seeking multigenerational layouts now, even if they don’t need them yet.
4. Work-From-Home, Creative Studios, and Home-Based Businesses
Post-2020, many buyers aren’t just looking for an extra bedroom—they want a true separation between work and home.
Second living quarters are ideal for:
- Licensed therapists, coaches, or consultants seeing clients by appointment
- Artists, makers, and content creators needing a studio space
- Remote workers who want a quiet office that isn’t the kitchen table
- Wellness spaces: yoga studios, massage rooms, sound therapy, etc.
An ADU or studio-style apartment creates a professional, quiet zone without the overhead of commercial space or the commute across town.
5. Resale Appeal in a Tight Housing Market
Because the broader U.S. housing market is still millions of units undersupplied, homes that provide more functionality on one lot are especially valuable.
Recent analyses show that:
- Properties with ADUs and usable secondary units often sell faster
They can command a price premium compared to similar homes without that extra space
As more buyers become aware of multigenerational and house-hacking options, homes with second living quarters are likely to remain in demand—especially in destination markets and college or hospital towns.
Common Ways Buyers Use Second Living Quarters
Here are some of the most popular ways today’s buyers are using these spaces:
- In-law suite or parent cottage
Keep loved ones close while avoiding the high cost of assisted living. - Apartment for adult children
A gentle “launch pad” for kids finishing school, starting careers, or regrouping after life changes. - Income unit
Long-term tenant, traveling nurse, remote worker, or a trusted local renter (subject to local rules). - Guest retreat
A comfortable, self-contained space for visiting family and friends—no air mattresses required. - Home office or studio
Truly separate work and home life while still staying on-site. - Caregiver housing
A private suite for a live-in caregiver or health aide when needed. - Future downsizing option
Live in the main home now, move into the smaller unit later, and rent out the primary home.
Things Buyers Should Pay Attention to
Because second living quarters can involve zoning and permitting, it’s important to understand how the space is recognized legally and what you can (and can’t) do with it.
Key questions to ask:
- Was the second living quarter permitted?
Confirm with local records or ask for documentation. - How is it classified?
ADU, guest suite, “second living quarters,” or just finished space with no legal kitchen? What do local zoning and HOA rules allow?
Some areas limit short-term rentals, multiple kitchens, or extra units.- Is there a separate entrance and safe access?
Important for privacy, safety, and future rental use.
Because every city, county, and neighborhood can have different rules, working with a local agent who understands both the real estate side and the regulatory side is critical.
Featured Asheville-Area Listings with Second Living Quarters
