For many families, keeping aging parents close can feel like the most practical and compassionate choice, until the bills start piling up. That's been the reality for Linda Barton, a 55-year-old Texan outside Houston who moved her mother and stepfather into a backyard tiny home, only to find daily care still comes with a steep price tag.
Here's what to know
After deciding that long drives and a lack of room in their own home made other options unworkable, Barton and her husband bought a $37,000 tiny home for her mother and stepfather, Business Insider reported.
They spent months getting the unit ready with electricity, a septic hookup, a ramp, and other indoor essentials. They also added a second tiny home for Barton's father-in-law that cost $43,000.
Living on the same property has made it easier for the family to stay connected and organize help, but it hasn't eased the financial pressure. Barton said employing caregivers for all three parents still costs less than assisted living. Still, Barton said she's "drowning" in caregiving costs because Medicare and hospice have provided little relief.
As long-term care costs rise, some families are opting for accessory dwelling units, trailers, or converted sheds instead of nursing homes. Business Insider cited CareScout data showing that the annual cost of a private nursing-home room rose from $111,000 in 2022 to $130,000 in 2025.
The sticker shock can be substantial. ADU construction often runs about $100,000 to $300,000 before adding architect fees, utility connections, and permits.
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More background
High housing prices have made multigenerational setups especially attractive in some places. In California, Rachael Reiner, director of pre-construction and project management at the Bay Area ADU company Villa, said 75% of the company's 2026 sales came from multigenerational households, many tied to caregiving.
For some families, the appeal isn't only financial. Shalini Karnani Bonjour, 50, said her family chose to build an ADU in the Coachella Valley so her mother could live nearby while maintaining some independence. "The whole process has been difficult because there are so many things to manage. You're trying to keep the project affordable, keep your neighbors happy, and stay on track."
Specialists say backyard homes are not a universal answer. Mildred Warner, a professor of city and regional planning at Cornell University who has studied ADUs, said, "ADUs are helpful for certain situations where the care need isn't that great, or where somebody in the house has time to provide that greater care. There are other situations where it makes more sense to have people in older-adult apartment complexes."
What's being done?
Some lawmakers are trying to reduce the barriers to building ADUs. In North Carolina, Rep. Vernetta Alston co-sponsored a bill that would require local municipalities to allow at least one ADU on single-family lots, in part to give families more care options.
In Raleigh, Alison George had a guest house renovated for her mother before her Alzheimer's advanced; her mother moved into memory care in 2021 and into a Medicaid facility by 2025.
In Long Island, Lena Koropey built an ADU in her backyard for her mother with later-stage Alzheimer's. "Having everyone on the same property is enormously valuable," Koropey said. "You can't really put a price on that sense of community, the bond of family, or the ability to support one another."
Where can I learn more?
Keeping older relatives nearby can also mean bigger housing decisions and rising household bills.
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