Iowa Tiny Home and ADU laws are prohibitive. Is that about to change?

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Building a Tiny Home in Iowa or an ADU (Accessory Dwelling Unit) sounds straightforward, but Iowa law makes it anything but simple—a new bill may rectify that. Depending on which city you live in, current laws and regulations may be entirely different. According to Mike Stuart, founder of Tiny Homes of Iowa, this complexity is drives costs, impacting a particular group of Iowans seeking low-cost housing.

Shockingly, younger buyers aren’t interested in low-cost tiny homes. With high housing prices, Iowans entering their 70s are wanting to downsize and stay in their community or near their family, but options aren’t available due to builders and cities prioritizing more square footage.

Building tiny homes or ADUs can be a great solution, but presents legal and regulatory challenges. That’s why a new Iowa bill under consideration may force cities to allow ADUs.

The Future of Tiny Homes and ADUs in Iowa

Stuart, owner of Tiny Homes of Iowa, is helping to drive ADU law changes in Iowa. Host Justin Brady asks about increasing interest in Accessory Dwelling Units (ADUs) and their potential impact on housing across the state. While cities like Des Moines, Iowa City, and Cedar Rapids have begun to embrace ADUs, many other communities remain hesitant due to outdated regulations and zoning laws.

Stuart explains the differences between tiny homes and ADUs and why tiny homes. Tiny homes are likely to stay illegal as a primary residence in Iowa but ADUs may be given the green light, and are being considered as a solution for multigenerational living, retirees looking to downsize, and rental income opportunities. A proposed bill, HSB 162, aims to remove barriers and simplify the process for homeowners who want to add an ADU to their property.

Why ADUs Matter: A Solution for Aging and Affordability

A major factor driving interest in ADUs is the need for housing options for aging family members. Many homeowners are searching for ways to keep their parents close while avoiding the high costs of assisted living. Retirees are living longer theses days and also want to maintain independence. ADUs provide an opportunity for that independence, are a low-cost option, and can be located close to family and any Iowa community. This is why organizations like the AARP are pushing for the bill and helping lawmakers on language.

“ AARP came up with the standardized language back in 2000 to start helping these cities and towns do this,” said Stuart. “Now it’s gone through a second revision and they’re helping these cities come to the standard language that makes sense for the state.”

There is also growing interest in using ADUs as rental units, given Iowa’s ongoing affordable housing shortage. However, in many cities, homeowners are required to reside in either the ADU or the primary residence if they want to rent out the other space.

Regulations, Resistance, and ADUs in Iowa

Despite the demand, many cities remain resistant to allowing ADUs due to restrictive zoning laws. Some of these regulations were written decades ago, long before ADUs were a widespread consideration. “After World War II, and up and through the 80s, they made them illegal. “I think it was probably because they just wanted to control how many houses, you know, they have so much infrastructure,” said Stuart.

The proposed legislation would establish statewide guidelines, allowing homeowners to build ADUs without needing extensive planning and zoning approvals, as long as they follow existing building codes.

Stuart highlights how other states, such as California, have already embraced ADUs to combat rising housing costs, “50 percent of the building permits are for ADUs in California,” he said. He believes Iowa could benefit from similar policies, especially as housing demand continues to shift.

For those interested in learning more, Stuart suggests resources like AARP’s ‘ABCs of ADUs’ guide and encourages listeners to visit TinyHomesofIowa.com to explore Iowa’s evolving ADU landscape.