Tiny homes have become a hot commodity for the real estate industry in the past couple of years. Now, within that burgeoning category, there’s another subset emerging -- the "granny pod.”

Jane Baldwin is on the move and making a big change. The 67-year-old raised a family in Wyoming. But now her son is raising his family in Oakland, California and she wants to be close, but not too close.

"That wouldn't work long-term, living with my son under the same roof,” Baldwin said.

So instead, Baldwin 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 kind of assisted care, but there isn't enough assisted living to meet the demand.

So, architects have discovered a new niche business -- granny pods.

"If people can age in place and age at home, it's much healthier and the family's happier. But it can be very expensive,” said Life Planning Partners’ Carolyn McLanahan. “Granny pods can cost anywhere from $150,000 to $250,000.”

Depending on how the size of the granny pod and your city ordinance, you may need a permit to have one on your property.