New York City’s Backyard Revolution: Tiny Homes on the Horizon

New York City is gearing up for a big change that could reshape neighborhoods and create more places to live. Homeowners may soon be allowed to build extra dwellings—like tiny backyard homes or basement apartments—on their property. This is part of Mayor Eric Adams’ “City of Yes” plan to make housing more affordable and accessible.

Cities across the country are using accessory dwelling units (ADUs) to address housing shortages, and NYC is catching up. These smaller homes fit neatly into backyards, garages, and attics, creating more options for renters and extra income for homeowners.

More than a dozen states have legalized ADUs, and cities like Los Angeles and Seattle are already leading the way. California, for example, saw ADUs account for 20% of new housing last year. These units are popular because they add housing without dramatically changing the look of neighborhoods.

In New York, the “City of Yes” plan aims to create about 20,000 ADUs over 15 years. While this number is less than the original goal of 40,000, it’s still a significant step forward.

Not everyone is excited about this idea. Some council members in less dense areas, like parts of Queens, argue that ADUs could disrupt the character of their neighborhoods or lower property values. Because of these concerns, some restrictions remain, limiting ADU development in areas zoned for single-family homes.

A Helping Hand for Homeowners

To make things easier, the city plans to: