How Much Does It Cost To Build An ADU in California?

The cost to build an ADU in California ranges from $100K to $250K. The total cost depends on many factors like the size of the ADU, location of the property, quality of material used in the ADU, and timeline. In this article, we have summarized the whole process to help you make a decision.

Backyard cottages and in-law apartments are on many homeowners’ minds as housing becomes more crucial than ever. Many California counties have passed legislation that encourages the construction of ADUs. A backyard home could be the perfect solution if you need a dedicated home office, a place for Mom, or extra rental income.

To find out the actual costs, we did a survey and asked about the total cost from ADU owners in California. We have included some of the actual costs from the recent survey and self-reported construction cost data from ADU owners. Permit costs, design costs, utility connection costs, and all construction costs are included in the self-reported costs. The costs also include the house owner’s estimation of their sweat equity contribution. However, landscaping and furniture costs are not included.

Average cost to build an ADU in California

Types of ADUsCost Range in California
Accessory Dwelling Unit ( ADU ) 250 sq. ft< $100K
Accessory Dwelling Unit ( ADU ) 350 sq. ft$100K – $125K
Accessory Dwelling Unit ( ADU ) 400 sq. ft$100K – $130K
Accessory Dwelling Unit ( ADU ) 448 sq. ft$125K – $150K
Accessory Dwelling Unit ( ADU ) 500 sq. ft$125K – $150K
Accessory Dwelling Unit ( ADU ) 525 sq. ft$125K – $150K
Accessory Dwelling Unit ( ADU ) 550 sq. ft$130K – $160K
Accessory Dwelling Unit ( ADU ) 600 sq. ftAround $150K
Accessory Dwelling Unit ( ADU ) 650 sq. ft$150K – $200K
Accessory Dwelling Unit ( ADU ) 700 sq. ft$175K – $200K
Accessory Dwelling Unit ( ADU ) 750 sq. ft$175K – $200K

According to the California Department of Housing and Community Development, Accessory Dwelling Units (ADUs) had been recognized through many names: granny flats, in-regulation devices, outside cottages, secondary devices, and more. They are secondary devices constructed at the equal belongings as the present home. ADUs are secondary houses on a residential property. They are usually compact (like a tiny house or cottage), however, they have got their very own kitchen, residing area, bedroom, and entrance. It has become very famous in the Bay Area, and maximum California neighborhoods are actually permitting ADUs to be constructed on residential properties.

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Benefits of building an ADU in California

Given the numerous advantages that an ADU can provide, it’s easy to see why they’re becoming increasingly popular. Homeowners are realizing that these smaller, secondary units, which share a lot of space with their primary residence, can improve their lives by providing additional usable square footage.

Extra-source of Income

The main feature of an ADU is that it is a separate living space from the main house, making it ideal for renting out. A clear separation of residences gives the tenant and landlord the privacy they want while still allowing easy access to either party or property when needed.

ADU rentals can provide a consistent and significant stream of income that can be used to cover the cost of construction while also providing additional income in the future. Paying down the debt used to finance the construction of an ADU with rental income is an attractive course for homeowners in major California city markets where median one-bedroom rents range from $1,800 to $2,830.

More Space

If you choose not to rent out your unit, there are numerous other use cases depending on your needs like a dedicated office. In the midst of the ongoing pandemic, many homeowners turned their ADU into an office. It will give you a safe space to zoom in and have office meetings without any disturbance.

Guest House

An ADU can also be used as guest accommodations. If you have friends or family who live in different parts of the country or they have come to stay the night, you know how expensive it can be to rent hotels. By being able to provide your guest with a place to stay that’s readily available, trips can be coordinated with greater ease and comfortability.

Space for Loved ones

ADU can be the best space to host your adult child or parents by giving them an independent space and making them comfortable.

Increased Property Value

When it comes time to sell your home, a prospective buyer or real estate agent will recognize the benefits and extra space as ADU and value them proportionately. In California, return on investment could be as high as 88 percent for a detached ADU, as estimated by a Los Angeles-based ADU design/ build company.

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