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For 2015, Vipp, the Danish industrial design company known for its iconic trash cans and all-black kitchens, introduces a 592-square-foot prefab unit called Shelter.

To give her renters extra privacy, Kelli added a privacy fence around the backyard and installed soundproofing between both dwellings.

The two-bedroom ADU features built-ins in every room

Perched above a lake on Australia’s verdant Mornington Peninsula, James and Imogen Tutton’s teak-clad house was designed by Karen Alcock of Melbourne-based MA Architects.

One of the main sustainable features of the home is its small size. “It’s a very small house with good insulation and natural ventilation,” says architect Line Solgaard. “Keeping the building small is one of the most important considerations for sustainability.”