Navigating the housing market in Los Angeles proved to be a challenge for one law school graduate, who found herself living in a space akin to the size of a modest bedroom.

After completing her studies, she moved into a 230-square-foot accessory dwelling unit (ADU) built by her parents. This decision was driven by the daunting real estate prices in the city, making it difficult for her to establish herself independently.

Reflecting on her situation, she shared with the LA Times, “At 28, I was uncertain about where I wanted to settle in Los Angeles.” Having been raised in the close-knit community of Pasadena, she appreciated the opportunity her parents provided. “Living in this small house in the backyard allowed me to explore the city thoroughly and find a place that felt right, instead of hastily grabbing the first available option like many of my peers. It was right after the bar exam, and the stress was overwhelming.”

In a city where the average home costs a staggering $878,851, according to Zillow, the ADU offered a more affordable alternative. The construction of the unit cost her parents, Warren Wellen, 65, and Tina LaMonica, 64, approximately $125,000, covering expenses such as permits, construction, and essential systems, LaMonica explained to the LA Times.

The family’s journey began when they purchased their main residence for $650,000 in September 2001. Nearly two decades later, they added the ADU to support their daughter. Today, the value of their primary home has soared to around $2.5 million, a price point they acknowledge would be beyond their means if they were buying now.

Sophie’s parents bought the main house for $650,000 in September 2001 and built the ADU which would accommodate Sophie about 20 years later. Their main house is now worth about $2.5 million, a sum they said they could “never” afford now.

The original purpose of the mini-house was to be a music studio for Wellen, who is a musician in the alternative rock band Brahms’ Third Racket.

“It was intended to be a creative space, not a home,” LaMonica told the LA Times.

But Sophie’s parents were pushed to put her there to accommodate her debt-reduction goals.

“She wasn’t working right away, and like many new grads, she had student debt and credit card debt from getting through school,” LaMonica said. “Market rent in the Los Angeles area wasn’t realistic, even with a job offer lined up. So, the studio became her first home. It gave her stability and independence during a major transition.”

The ADU now houses Sophie’s sister, 27-year-old Ruby. The compact unit has black-and-white checkerboard floors, white walls, a Murphy bed that turns into a love seat, a kitchenette and bathroom.

The tiny home, square-shaped with a gable roof, sits feet away from their parents’ backyard pool and has a pink-and-blue framed window with a backyard view. A desk set and a chair sit near the window.

Sophie described it as a “cozy and nice” space that she eventually occupied with her boyfriend, her dog, and his two cats.

“It was a full house,” Sophie told the LA Times. “And yes, they were indoor cats! But we made it work. Finding a rental was hard. I couldn’t really afford a nice apartment in L.A. I had to save up and wait until my boyfriend got here so we had two incomes.”

Sophie moved out of the ADU for a $4,500 two-bedroom in Hancock Park, and her sister, Ruby, moved in. Ruby also couldn’t afford to live in LA.

“She works in Torrance and can’t afford to rent an apartment close to her job,” LaMonica said. “The ADU gives her a chance to live affordably, stay safe and be near family, while building financial footing on her own terms.”

The two daughters’ parents said the ADU was akin to a “lifeline.”

In a place like Los Angeles,” she said. “The tiny ADU turned into a flexible and essential lifeline for our family, not just once but twice.”

Sophie said the overwhelming cost of the city makes any life decision difficult.

“We’re both lawyers at private law firms and doing well, but I still don’t feel like I could have a child right now and give them the life I want. It’s hard to make big life decisions in L.A., especially if you have student debt. It was really nice to have dinner with my parents every once in a while. They didn’t want William and I to leave,” she said.

Californians are fleeing because of the state’s high housing costs with the housing affordability crisis finding its epicenter in SoCal and the Bay Area. California has lost residents to other states for more than two decades. One of chief reasons? Housing costs.

The South Pasadena family’s ADU could be a creative solution for families to avoid the state’s high housing costs. But the average cost to build one remains high — people who want to build one should expect to shell out six figures.

California offers grants at times to soften the cost of building an ADU.