Lack of affordable housing is causing the rising trend of smaller homes. According to Fortune, half of all households in the country can’t afford a normal starter home. Hence the resurgence of cottage courts (a.k.a. bungalow courts) as a charming and practical solution—a type of small-scale community housing that promotes neighborly connections and efficient land use.
The post focuses on offering creative and cost-effective ideas for building cottage courts that can serve as affordable rentals. Use it as a checklist or as an inspiration.
You can take any of our accessory dwelling unit plans to get started. Our ADU Viewer is a great tool to show your neighbors they should have no privacy concerns.
The five ideas that will be covered in the post include:
Let us start by discussing common challenges that prevent a cottage court model from becoming a solution to missing middle housing.
Before we deal with the pool of ideas, let us talk about common challenges.
Building cottage courts presents unique challenges, especially when trying to keep them affordable. Some common issues are zoning, infrastructure, financing, cost-efficiency, privacy concerns, and long-term maintenance.
Zoning laws in many areas may not allow for the development of cottage courts, particularly in residential zones that require larger lot sizes or prohibit multiple units on a single parcel.
Before designing your cottage court, research local zoning regulations. Think creatively – sometimes it is better to subdivide first before designing a cottage court.
If you see any roadblocks, consider applying for variances. Lobbying your city council for zoning changes that support small, clustered housing developments is also encouraged.
Providing adequate infrastructure (roads, sewage, water, and electricity) for multiple units on a single lot can be expensive, particularly in areas without existing utilities.
To face the issue straight on, cluster the units closely to minimize the infrastructure needed and consider green infrastructure solutions like shared septic systems or solar power. Always have a backup plan for expensive requirements like fire sprinklers and driveways.
Parking requirements can be challenging for cottage courts. Here is how cottage courts typically address parking requirements:
If the lot has limited street frontage, think about optimizing the number of parking spaces for residents and occasional guests early on.
Securing financing for a cottage court can take time, as lenders may be unfamiliar with this type of development and view it as a higher risk.
Work with lenders who specialize in small-scale or nontraditional housing developments and explore alternative funding options, such as local credit unions, community land trusts, or cooperative ownership models.
If you are looking for financing, you need a lender who speaks the right language and knows construction costs.
Meet an experienced mortgage broker who has done hundreds of loans across California from her base in SoCal
You may need a mortgage officer who understands Bay Area real estate as a lender and prefab construction as a builder.
If affordability is the goal, keeping costs low while maintaining quality can be tough, especially with rising construction costs and land prices.
Use permit-ready plans and cost-effective prefab construction methods to keep land costs down.
Cottage courts are inherently dense developments, which can lead to concerns about privacy and overcrowding among residents.
To balance density and privacy, design the layout carefully to ensure each unit has adequate privacy, using landscaping, fencing, and thoughtful placement of windows and doors. This is also one reason we are not suggesting using modular construction—this construction type is less easy to customize.
Managing multiple rental units on a single property can be complex, especially when it comes to maintenance, tenant relations, and communal space upkeep.
Establish clear management structures and responsibilities from the outset, whether through a property management company, homeowners’ association, or another entity.
Addressing these challenges early on can help ensure a cottage court development is successful, sustainable, and affordable.
Communal outdoor areas in a cottage court, such as shared gardens, picnic areas, or fire pits, foster a sense of community while keeping costs low.
Design the cottage court around a central shared green space that serves as a communal gathering area, a perfect spot for a neighborhood party. This shared public space can include features such as a fire pit, seating areas, and gardens. Think about what could be done here at Halloween or Christmas.
The cottages should be arranged to face this space, encouraging interaction among residents. This layout not only fosters community but also enhances the development’s aesthetic appeal. The design can incorporate native plants and landscaping to minimize maintenance and support local biodiversity. Successful cottage courts emphasize a strong indoor-outdoor connection through large windows and French doors, landscaping, and patios.
Concentrate on creating an optimal site layout that maximizes the use of available land and keeps the community happy:
Using sustainable materials in cottage court construction is an emotional benefit and a cost-saving tip.
These choices can reduce long-term maintenance costs and appeal to eco-conscious renters.
To create eco-friendly cottages, use sustainable building practices and materials. This could include using locally sourced materials, energy-efficient designs, and renewable energy sources such as solar panels. Each cottage can be designed with green roofs or rainwater harvesting systems to promote sustainability. Additionally, implementing shared facilities for laundry, storage areas, gardening, and recycling can reduce the overall environmental footprint of the cottage court while encouraging community participation in sustainability efforts.
For passive solar design, cottages should be oriented to maximize southern exposure for natural heating in winter and use roof overhangs and awnings to provide shade in summer.
Proper insulation helps maintain comfortable indoor temperatures year-round. In winter, it prevents heat loss, keeping cottages warm. In summer, it reduces heat gain, keeping interiors cool.
This means smaller, more efficient HVAC systems ( a short-term benefit to builders) and lower utility costs for residents (a long-term benefit).
Insulation costs less than 2% of the overall construction budget but plays a huge role in long-term cost efficiency: It prevents conditioned air from escaping, reduces the workload on HVAC equipment, and thus extends the lifespan of heating and cooling systems. It is not to be ignored.
Proper insulation, when combined with air sealing measures, goes even further: it minimizes air leakage and drafts, prevents moisture issues (which means no mold), and improves overall comfort for residents.
We typically use high-efficiency heat pumps for heating and cooling with programmable or smart thermostats in each unit. While radiant floor heating across the whole unit may be excessive, consider it for bathrooms for improved comfort and efficiency (with a timer).
Do not forget about energy-efficient lighting and appliances
Even a tiny, affordable home must meet energy efficiency requirements, which these days means installing a heat recovery ventilation system (a.k.a. ERV) to maintain air quality while conserving energy.
There are no requirements for PV systems on smaller homes, but if you are considering installing carports, their roof may be a perfect spot for solar panels.
When designed right, little cottages feel spacious and functional despite their size.
Every line item matters when you are thinking return on investment (ROI). Here is what helps:
We do not need to say that offering different cottage sizes is super important to cater to a range of renters, from singles to small families. A mix of sizes can increase the marketability of the rental units and be a great solution for first-time homebuyers if you are building for-sale units.
One thing is a must, though: maintain a cohesive look for the entire court.
Incorporate a variety of unit sizes and configurations to cater to different demographics, such as singles, couples, and small families. They can be starter homes and homes for those who are retiring and downsizing. For example, some cottages could be designed as studios and one-bedroom units, while others could have three bedrooms. This flexibility allows for a diverse community and can adapt to changing family needs over time. The units can also feature innovative storage solutions and multi-functional spaces to maximize usability within smaller footprints.
Offer a mix of unit sizes (typically 500-800 sq ft) to cater to different needs.
Maximize livable space within compact footprints.
Include porches or patios to extend living areas and connect to the shared courtyard.
You may think that a traditional cottage style would be the most appropriate architectural style for a cottage court, but let us consider two other options: contemporary and Spanish (or Mediterranean, if you will).
A contemporary-style cottage court would blend modern architectural elements with the traditional cottage court layout.
By integrating these contemporary design elements, a cottage court can offer modern, sustainable living spaces while preserving the community-oriented atmosphere that defines this type of development.
A cottage court designed in Spanish style would incorporate elements of traditional Spanish architecture while maintaining the compact layout of cottage courts.
With these Spanish-inspired elements, a cottage court can achieve a charming, Mediterranean-inspired atmosphere of sun-drenched family vacations while maintaining a cozy, community feel.
Height Limit Provisions:
One must recognize the potential impact of pocket neighborhoods on creating affordable and attractive rental properties. Why not create a beautiful place that gives the ambiance of a permanent family vacation?
There are several key benefits to living in a cottage court compared to a traditional neighborhood:
These benefits make cottage courts attractive for those seeking a balance between community living and private home ownership, especially in urban or transitional areas.
Use our ADU Viewer to explore these ideas in your projects, and contact us for more information on building a cottage court. We are looking forward to it!
