Accessory Dwelling Units in Anchorage will Soon Become a Reality
by carlos matías
Amid the worst housing crisis in recent years in Anchorage, the Assembly amended the municipal land-use plan in 2023 and laid the groundwork for the residential development of ADUs, which was approved in April.
ADUs (short for Accessory Dwelling Units) are small, independent residential units that can be built on the same developed lot as a single-family home. These ADUs feature a kitchen, living room, and entrance, and serve as flexible housing for family members, guests, or for rental purposes.
ADUs provide private, close-by living spaces for elderly parents, adult children, or caregivers, making them multigenerational housing solutions.
In 2023, the Anchorage City Council amended its municipal land-use plan, but it wasn’t until last April that it approved this housing solution, which is more affordable than a conventional home.
Keep in mind that, in early 2025, the city had about 3,000 people who were homeless or actively waiting for housing, and many of them were living (or still live) in tents, RVs, or shelters. The city is suffering from a severe housing shortage, described as the worst in over a decade.
This has been a concern for the current municipal administration, which launched its “Ten Thousand Homes in Ten Years” plan. Now, tent encampments have decreased, according to March data. But there are still hundreds of homeless people, although in smaller and more scattered groups.
The number of available apartments has fallen by 2% in Anchorage, making it difficult for lower-income residents to access housing. In one of the latest calls for short-term rental assistance, more than 1,300 households applied. Of these, more than 800 were households with children.
There are different types of Accessory Dwelling Units (ADUs): Attached, which add space to the home or convert an existing attached space, such as a garage. Detached, built in a backyard or above a detached garage. Junior (JADU), small units of 500 square feet or less (about 46 square meters), fully integrated into the home, often using part of an existing bedroom or garage.
ADUs must have a full kitchen, bathroom, and exterior entrance, and cannot be sold separately from the main residence. With ADUs, homeowners can generate income while increasing their property’s value.
Building an ADU requires local permits. Construction costs vary depending on whether it is a renovation or a new freestanding structure, with options for traditional construction or prefabricated units. It is necessary to consult the Municipality’s regulations. The pre-approved Accessory Dwelling Unit (ADU) program facilitates construction by offering free pre-approved designs. The program aims to increase the housing supply by providing plans, design catalogs, and checklists to estimate construction costs and timelines.
