. >> reporter: 67-year-old jane baldwin is on the move, making a big change. how's your health?my health is perfect i've gotten my second hip replaced. >> reporter: baldwin raised a family in wyoming but now her son is raising his own family in oecd, california, and she wants to be close to help but not too close. >> that wouldn't work long-term, living with my son under the same roof. >> reporter: instead, she built a tiny, 400-square-foot house in her son's backyard, nicknamed a granny pod. the census bureau predicts one in five americans will be over the age of 65 by the year 2030 and most of them will eventually need some sort of assisted care. there isn't enough assisted living to meet demand. >> have you figured out where everything's going to go. >> not at all. >> reporter: so architects have discovered a new niche business, granny pods. $250,000 is still cheap for bay area housing. laws in six states now specifically allow granny pods but in many be temporary structures. this one is a permanent one and because they're so expensive, if it's only temporary, it may not be f