Homeowners who want to add more value to their properties are turning to an evolving trend: building a second home in their own back yards. With housing costs higher than ever, some housing experts believe that additional dwelling units (ADUs) are a viable answer to the current housing shortage. The only problem is overcoming outdated building codes, but that’s improving rapidly.

ADU is an umbrella term that covers granny flats, guest houses, cabanas, carriage houses, tiny homes, and garage apartments, to name a few. ADUs can be attached to the main house, converted from garages, attics or basements, or built as stand-alone homes from the ground up or by using manufactured housing kits.

These scaled-back homes are typically much smaller in square footage than the main house, yet they feature full amenities. A popular layout might offer a living and dining room, kitchen or kitchenette, one or two bedrooms each with a full bath, laundry room, closets, storage, and a patio or porch. For privacy, ADUs always have separate entrances, making them ideal for an aging parent or retiree, college student, or young couple.

As an investment, an ADU is cost-effective, as the homeowner already owns the land and is able to recover construction or conversion costs more quickly. An ADU can add as much as 30% more value to a given property.

To learn if your property is suitable for an ADU, contact your local government’s zoning and building permit department, or visit sites such as AccessoryDwellings.org.

Mortgage interest rates are hovering at the highest levels in over 23 years, causing mortgage demand to sink to a 27-year low. Waiting for home prices to come down has had little success for homebuyers due to an unprecedented imbalance in housing supply. What can you and other homebuyers do to increase your buying power?

One advantage of higher interest rates is that they can make you money in other investments until you’re ready to buy your home. Start with a debt consolidation loan to pay off high-interest credit cards. Do some research to learn where it’s best to park some cash in savings, the term of the investment(s), and penalties for early withdrawals, if applicable.

High-yield savings accounts. Most savings accounts have variable annual percentage yields (APYs), which means the return is linked to Federal Reserve overnight funds rate changes. Currently, you can get yields between 4.00% and 5.00% APYs while a traditional savings account is 0.50% or less.

Certificate of deposit (CD) accounts. The average 12-month CD is about 1.49%, still much higher than a typical savings account. But many online financial institutions are paying 4.5% to 5% APY, reports CBS.

Corporate bonds. To raise capital, some corporations issue debt securities which means you’re loaning money to the company in return for regular income payments and the return of your initial capital when the bond reaches maturity. The benefits are lower risk for investment-grade corporate bonds, lower volatility, and greater diversification that’s not tied to the stock market.