On a crisp Saturday morning in Ditmas Park, the low buzz of power tools mingles with the scent of fresh bagels as construction crews frame what looks, at first glance, like an upscale shed. But this compact structure is a sign of the times: a newly permitted accessory dwelling unit, or ADU, rising in a backyard where tulips bloomed just last spring.

With the city’s rental market still tight this fall, homeowners across Brooklyn and Queens are seizing on recently relaxed zoning rules to build ADUs—granny flats, backyard cottages, and converted garages—either to house family or generate income. For 62-year-old architect Lila Moreno, the decision to downsize from her three-story rowhouse and move into a sleek, sunlit ADU behind her own property was as much about autonomy as economics. “I walk my grandson to PS 217 every morning and still have privacy,” she says, sipping coffee on her tiny porch. The main house, meanwhile, brings in $4,200 a month, a cushion against rising property taxes and utility bills.

This season, applications for ADU permits have tripled in parts of the outer boroughs, according to the Department of Buildings. Contractors report a waitlist well into December, fueled by multigenerational families and older homeowners seeking flexibility as the school year kicks off and new tenants hunt for affordable options. “It’s a new chapter for these historic neighborhoods,” says developer Eli Cohen, who specializes in backyard units in Astoria. “People want to stay rooted, but adapt.”

The trend isn’t just about profit. At a City Council hearing last Tuesday, housing advocates pointed to ADUs as a lifeline for seniors hoping to age in place and for young families squeezed by soaring rents. A pilot program launching later this month in the Bronx will streamline approvals and offer low-interest loans for eligible homeowners, aiming to add hundreds of legal apartments before the year’s end.

As autumn sunlight slants through the maples in Carroll Gardens, more New Yorkers are eyeing their own yards and basements with new possibility. For Moreno and her neighbors, the ADU isn’t just a practical solution—it’s a small, hopeful answer to the city’s perennial question: how to make home work, right now.

Frequently Asked Questions

What are accessory dwelling units (ADUs) and why are they becoming popular in New York City?

Accessory dwelling units (ADUs) are small secondary homes like backyard flats or converted garages, and they’re becoming popular in NYC due to relaxed zoning rules, housing shortages, and the need for multigenerational living.

How much has the number of ADU permit applications increased in Brooklyn and Queens?

ADU permit applications have tripled in parts of Brooklyn and Queens this fall, according to the Department of Buildings.

How are homeowners using ADUs to generate income?

Homeowners like Lila Moreno are moving into ADUs on their property and renting out their main houses, in her case for $4,200 per month.

What support is available for homeowners wanting to build ADUs in New York City?

A pilot program launching in the Bronx will streamline ADU approvals and provide low-interest loans for eligible homeowners.

Why are ADUs seen as beneficial beyond generating rental income?

ADUs are viewed as a lifeline for seniors who want to age in place and for young families struggling with high rents.

Editorial Transparency. A first draft of this story was produced with AI-assisted writing tools, then reviewed for accuracy and tone by the named editor before publication. More on our process: Editorial Policy.