The Ultimate Guide to Building an ADU: Costs, Benefits & Process
Building from Scratch: The Power of Ground-Up construction
December 26, 2023Boston provides ADU grants!
March 10, 2025What is an ADU (Additional Dwelling Unit)?
An Additional Dwelling Unit (ADU) is a small, self-contained living space built on the same property as a primary residence. ADUs can be attached (converted from an existing space or added to the main home) or detached (a separate structure in the backyard).
With rising housing costs and increased demand for flexible living spaces, ADUs have become a smart investment for homeowners looking to generate rental income, provide housing for family members, or increase property value.
Why Build an ADU? The Benefits
✔ Rental Income – Homeowners can rent out their ADU for passive income, helping offset mortgage payments or retirement savings.
✔ Increased Property Value – A well-built ADU can significantly boost home resale value.
✔ Housing Flexibility – Use it for aging parents, college students, or guests, offering privacy and independence while staying close.
✔ Cost-Effective Living Solution – Compared to buying a new home, ADUs offer an affordable way to create more livable space.
✔ Sustainable & Efficient – Many ADUs are built with eco-friendly materials and designs, making them energy-efficient and sustainable.
The ADU Building Process
Building an ADU requires careful planning, permits, and budgeting. Here’s a step-by-step guide to help you navigate the process:
1. Research Local ADU Regulations. We are experts!
Before starting, check with your local city or county planning department to understand ADU zoning laws, size restrictions, and setback requirements. We are experts and can help ensure the project will be building code compliant.
2. Determine Your Budget
The cost of building an ADU varies based on location, size, and design. Here’s a breakdown:
- Attached ADU: Costs range between $75,000 – $100,000.
- Detached ADU: Construction costs typically range from $250,000 – $350,000.
3. Hire an ADU Specialist. Thats us!
Working with an experienced contractor such as us to create a design ensures that we maximize space and efficiency. A specialist ensures compliance with local building codes and can help secure permits faster.
4. Secure Permits and Approvals. We handle this process!
Permits vary by location, but typical requirements include:
- Zoning permits
- Building and safety inspections
- Utility connections for water, sewer, and electricity
5. Design and Construction
Once approved, construction begins. This phase includes foundation work, framing, roofing, insulation, plumbing, and electrical installation. Expect the entire process to take between 4 to 12 months depending on complexity.
6. Final Inspections & Move-In
After construction, the ADU undergoes a final inspection to ensure safety and compliance. Once approved, it’s ready for occupancy!
Is an ADU a Good Investment?
Yes! ADUs can yield strong financial returns. Here’s how:
💰 Rental Income: Depending on location, an ADU can generate between $1,500 to $3,500 per month in rental income.
📈 Property Value Increase: Studies show that homes with ADUs sell for 20-30% more than those without.
🏡 Multi-Generational Living: An ADU provides an affordable way for families to stay together while maintaining independence.
Final Thoughts: Should You Build an ADU?
If you’re looking for a cost-effective way to add living space, generate rental income, and increase home value, an ADU is a smart investment. By understanding the costs, process, and potential returns, you can make an informed decision that benefits your family and financial future.
Need Expert Help? Contact us today to discuss your ADU project and get a free consultation!
