Set Up a Free Consultation
ADU Cost Guide
What Does it Cost to Build an ADU?
An ADU or Accessory Dwelling Unit may be on your mind if you’re considering adding another building to your property, either for additional space for loved ones or as an extra source of income. The cost of these projects are wide ranging depending on how complicated your situation may be and how much customization is involved, but there are some general guidelines out there.
Cost Factors to Keep in Mind
Remembering that this ADU is going on your existing property, there are a lot of different factors that come into determining costs:
- If you think of an average ADU ranging from 600 to 1,200 square feet, you can estimate costs between $150-$400+ per square foot, depending on the size and specific options.
- An over-the-garage conversion might cost in the $80,000 to $150,000 range since the foundation, roof, and framing are already in place.
- Building an addition onto your house, my comparison, might cost more in the $100,000 to $200,000 range.
- A detached ADU, meaning a building that is not physically connected to your primary residence could potentially cost $150,000 to $300,000+ depending on the options and costs like trenching utilities or pouring a new foundation.
Be sure to remember, an ADU is a building meant to be lived in, just like any other residence, so all of the expenses of the building project add up quickly, such as:
- Outside – grading the land, laying a foundation, extending utilities
- All of the work done by experts inside the structure – the insulation, drywall, HVAC, plumbing, and electrical work done by specialized contractors.
- Anything custom – like custom floors, kitchens, and customized interior framing.
- And... the labor costs, permits, and fees for the contractors, engineers, architects, and municipalities.
Is Building an ADU on my Property Worth the Cost?
Absolutely, because of two very specific words in your question --- “your property.”
Remember, an ADU is going on the property that you already own in addition to your primary residence. That means you’re not buying more land, which cuts the price down compared to a regular “from scratch” build, and you can use the existing equity in your home and property to help finance the ADU project.
When you put the different methodologies side by side, there’s more than just the financial cost of the build to consider as well. Would an ADU mean that your parents could live right next door? Or are you going to use the ADU for income as a rental property? Building an ADU is also going to greatly increase your property value, which will then (again) increase your equity as well.
The Bottom Line
If you’re considering an ADU project, for whatever reason, you need to plan thoroughly and extensively to avoid hiccups and problems. Rules, permits, and zoning vary greatly from city to city and state to state, so you need to be sure that such a build is even allowed where you live. You also need a licensed general contractor who is experienced with draw schedules, inspections, and the timelines that the lenders will require.
On the bright side, the equity that you’ve already built into your home and property could be just the thing to jumpstart your dream of caretaking a loved one, downsizing your own home without leaving the community you love, or creating consistent long-term rental income.
It’s a lot to think about, and a lot to talk about. Luckily, we’ve got just the guy that you need to answer all of your questions.
Book a Free Consultation
If you're trying to figure out what an ADU project might actually cost for your specific property and situation, let's work through it together. Book a free consultation with RJ Jaramillo. He’ll break it down in simple terms to avoid surprises and put you on the path that is the best fit for your particular needs.
DISCLAIMER
Costs, zoning requirements, and construction conditions vary widely by location. Always review your specific plans with a qualified professional before making decisions.
The cost of an ADU project is not necessarily as cut and dry as you might think.
Unlock your property's potential with our flexible loan options. Use your existing equity to build a ADU.