What’s New in New Construction? ADUs, Barndominiums and the Multifamily Boom | Guiding You Forward
The construction lending landscape is evolving rapidly, and recent changes are opening new doors for homeowners and investors alike. In our latest podcast episode, we explore the rise of ADUs and barndominiums and the strategic shift toward multifamily developments that's transforming neighborhoods nationwide. These trends reflect broader changes in how we think about housing, affordability and maximizing property value.
In a recent episode of the Mountain America Credit Union Guiding You Forward podcast, host Tasia Briggs sat down with mortgage experts Matt McRoberts and Kim Moore to explore the latest trends reshaping the housing market. From innovative dwelling solutions to creative financing options, the conversation revealed how builders and lenders are adapting to meet evolving homeowner needs and market demands.
In this episode you’ll discover:
- How lending on ADUs has evolved.
- The benefits of a barndominium.
- The draw of the multifamily unit.
Accessory dwelling units (ADUs) are no longer just a trendy housing solution—they're now a viable financing option. Matt explains how lenders have evolved their approach to mother-in-law units and other income-producing additions when it comes to construction loans. Potential rental income can be used to help borrowers qualify for higher loan amounts by improving their debt-to-income ratios. Want to know how this could impact your next construction project? The full episode breaks down exactly how these loans work.
Move over traditional stick-built homes—barndominiums are having a moment. These steel-structure homes offer massive garage spaces that can accommodate everything from pickleball courts to RVs, all while maintaining the appearance of a conventional home. "They're more of a barn-type structure,” Matt notes, “and part of the home is built and finished as a regular home, but then you usually have massive garages." However, there's a catch involving appraisals and comparables that potential builders need to understand before breaking ground.
The trend of replacing single-family homes with multiunit developments is transforming neighborhoods across the country. Kim highlights the strategic thinking behind this shift. "The builders want to make the most … out of that property, especially in high-demand areas," she explains. This approach benefits everyone—from landowners getting premium prices for their lots to younger buyers accessing more affordable homeownership options.
Watch the full podcast episode to get all the details on these construction trends and discover how they may impact your next housing decision.
