One answer to the local housing shortage – and a new source of income – might be right in your backyard.
More than 50 homeowners, real estate professionals, and city staff members recently attended a daylong boot camp focused on accessory dwelling units, or ADUs. It was organized by longtime “small, infill developer” Nathan Biller, who recently launched
MI Backyard Build, a venture that helps homeowners navigate the process of designing, obtaining permits for, and constructing ADUs.
Mayor David LaGrand called the session a strong example of how citizen initiative can align with city priorities.
“Nathan took the initiative. He cares. He’s a citizen who really cares about this issue,” LaGrand says. “He’s a good model resident who got excited and started working on it himself.”
Grand Rapids faces a widening housing gap, as the median household income no longer covers the cost of the median house. Officials view ADUs — smaller units such as carriage houses, basement apartments, or backyard cottages — as one way to add affordable options.
A simpler process
ADUs have been legal but difficult to build. Homeowners needed neighborhood approval, hearings, and special permits. As a result, only eight were built in a decade.
In April 2024, the City Commission revised the ordinance to allow ADUs by right.
The revision also allows ADUs on lots that are not occupied by the owner, which eases financing and increases the permitted height. Commissioner Jon O’Connor led that effort, supported by then-Mayor Rosalynn Bliss and Planning Director Kristin Turkelson.
The impact was immediate: as many ADUs were permitted in the following year as in the previous 10. Two of those belong to Biller.
“Removing information barriers is a huge thing,” LaGrand says. “Until you have a critical mass, people don’t really believe it’s possible. That’s what Nathan’s boot camp did well — he brought people together, demystified the process, and showed proof of concept.”
Biller’s journey into housing began in 2009 when he bought his first house near Grand Valley State University. With four empty bedrooms, he rented them out on Craigslist. The income covered his mortgage and sparked a career in real estate.
During the housing crash, Biller purchased and renovated homes on the city’s West Side. He later moved into new construction, and by 2017, had shifted exclusively to duplexes when single-family homes stopped being financially viable.
“I’ve always been entrepreneurial, but I’ve also been hands-on,” Biller says. “When the city started talking about ADUs, I realized this was a way not just for me, but for lots of people to be part of the solution.”
MI Backyard Build was born from that realization.
“We help homeowners turn their underused backyards into income-generating housing through accessory dwelling units,” Biller says. “We guide homeowners through the entire process: education, design, construction, and property management.”
‘Uber for backyards’
He explains it with a familiar analogy. “Think of ADUs as Uber for backyards,” Biller says. “Just like rideshare turned underused cars into income, ADUs unlock spare yard space to create both housing and financial security.
“Whether someone wants to help their aging parents live independently, move into it themselves, or generate rental income, ADUs are this incredible, underutilized tool that can solve multiple problems.”
Biller is also pitching the idea beyond City Hall. He is one of the competitors in the
Start Garden 100 entrepreneurship competition on Sept. 17 and aims to secure a spot in the top 10, which comes with a $20,000 prize to grow the business.
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Alex Sheffer of Firebolt PhotosMayor David LaGrand kicks off the daylong boot camp on accessory dwelling units (ADUs).
“This is an idea that can scale,” Biller says. “If I can prove it works in Grand Rapids, I can help homeowners in other cities unlock the same potential.”
The August bootcamp offers one measure of impact. Forty-one people registered, and nearly all attended. Nine speakers, including three city planners, shared expertise. By day’s end, several participants expressed confidence about moving forward with projects.
“The goal was simple: come in not knowing much, leave feeling confident,” Biller says. “And that happened.”
Biller kept the cost under $100, compared to $350 for a similar event in Denver. He also certified the training for continuing education credits for real estate professionals, making it both accessible and a professional development.
Financial benefits
The financial case for ADUs may be their strongest selling point.
Housing is considered affordable if it costs no more than 30 percent of household income. In Grand Rapids, the median selling price of a house is $300,000, making it affordable for an annual household income of about $83,000. However, the median household income in Grand Rapids is only about $65,500.
“The median household income in Grand Rapids can’t afford the median house,” Biller says.
“But if you spend about $65,000 to convert a basement or attic into a unit and can rent it for $1,000 a month, suddenly the math changes. A median-income household can now afford that home.”
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Alex Sheffer of Firebolt PhotosOver 50 homeowners, real estate pros, and city staff joined a daylong boot camp on accessory dwelling units (ADUs).
Detached backyard cottages cost more but can also generate more income. The key, Biller says, is that ADUs cover costs and provide returns. Unlike larger developments, they do not require subsidies or grants.
Barriers remain. In West Michigan, resistance to renters is common.
“There’s this idea in NIMBY circles that renters are lesser (than owner-occupants),” Biller says. “That mindset is a problem. We need to see renters as neighbors, not threats.”
LaGrand echoes the point.
“In Heritage Hill, people have rented out carriage houses for 100 years,” the mayor says. “And renters, in my experience, enrich your life. Some of my closest friendships began with people renting from me.”
Experts caution that ADUs alone cannot close the housing gap. They are typically one unit at a time, and scaling requires thousands. Still, as LaGrand notes, they can be a catalyst.
“We’ll know we’ve succeeded when we have more than 1,000 ADUs in town,” he says.
An opportunity for change
Biller credits Ryan Kilpatrick, a West Michigan housing consultant, with encouraging him to think bigger. Kilpatrick
wrote in a blog, “There is an incredible business opportunity in this space for a young self-starter with good people skills, an eye for design, and connections to reliable contractors.”
“Aside from being young, it sounded like he was describing me!” Biller says.
Kilpatrick, owner and CEO of
Flywheel Companies and lead consultant for Housing Next, an organization that works to encourage housing development at all price points, says he sees “extraordinary potential” in this business model.
“I don't expect that a large share of homeowners will choose to add a second home to their properties,” he says, “but even if only 1% or 2% of all homeowners take advantage of this option, it could result in thousands of additional housing opportunities in the region. That's a big enough impact to make a few bets on.”
Kilpatrick says he was impressed by the boot camp and the engagement of those who attended.
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Alex Sheffer of Firebolt PhotosNathan Biller speaks at the first ADU boot camp hosted by his new company, MI Backyard Build, drawing more than 50 homeowners, real estate professionals and city staff.
“My hope is that Nathan is helping to build a small army of contractors and developers who can help local homeowners navigate the process of adding a backyard cottage or mother-in-law suite,” he says.
LaGrand sees Biller’s story as a model of civic engagement. “He’s a fellow traveler,” the mayor says. “A concerned citizen who got excited, dug deep, and turned it into something real.”
Biller plans to host more boot camps and expand MI Backyard Build’s services. The city is tracking demand closely, while Biller looks toward scaling.
“Everybody says we have a housing shortage. Everybody wants someone else to solve it,” Biller says. “But we can do this one backyard at a time. It’s not glamorous, but it works.”
Housing shortages are complex. ADUs will not solve them alone, but early results in Grand Rapids show they can be part of the answer. Policy reform opened the door; citizen initiative and entrepreneurial energy are now pushing it wider.
“It started with me as a guy trying to make the numbers work on my first house,” Biller says. “Now it’s a business helping others unlock their own backyards. If enough of us do that, we can change the housing map of Grand Rapids — and maybe set an example for other cities too.”
Photos courtesy of Alex Sheffer of Firebolt Photos.