Business Insider·4 min read·medium

They couldn't afford nursing homes for their parents. They built them a tiny home instead.

They couldn't afford nursing homes for their parents. They built them a tiny home instead.
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Families are increasingly turning to Accessory Dwelling Units (ADUs) as a cost-effective alternative to traditional nursing homes for aging relatives. While these tiny homes provide proximity and support, families often face significant financial strain due to the high costs of private caregiving.

Why it matters

The rising cost of elder care is forcing families to innovate with housing solutions, highlighting gaps in public health support and insurance coverage.

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Jimmy Barton lives in a tiny home purchased by Justin Barton and daughter-in-law Linda Barton. Joseph Bui for BI ADUs are popular for multigenerational living, offering affordable alternatives to nursing homes. Building ADUs can be complex and costly, but they provide family support and community proximity. "Having everyone on the same property is enormously valuable," one source told Business Insider. Over the last few years, Linda Barton watched as her mom and stepdad progressively shifted from active 80-year-olds to, in her words, "children." Her mom with dementia became unable to take care of herself, while her stepfather, whose health has also declined, "acts like he's 6 years old." The commute to see them, which was an hour each way from work, wore her down, and she didn't want them to move in with her because of space constraints. She did the next best thing: move them into her yard.

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