Also known as accessory dwelling units (ADUs), these small, standalone units, typically 600 to 1,200 square feet, are gaining popularity as housing costs rise.

A bipartisan bill introduced by Congressmen Sam Liccardo and Andrew Garbarino would create government-backed loans to help homeowners build ADUs on their property, reducing the risk for lenders by guaranteeing part of the loan in case of default.

Backed by both parties and major industry groups, the bill comes as the US faces a shortage of 4 million homes. Many homeowners use ADUs to house family members or generate rental income. Builders are also incorporating them into new developments.

Tiny and modular homes are also helping in disaster recovery. After wildfires in California and Hawaii, companies like ICON and Hapi Homes provided quick, cost-effective rebuilding options using 3D-printed units.

Supporters see ADUs as a practical, fast-track solution to help ease the national housing crisis.