How Much Does It Cost To Build An ADU?

Accessory Dwelling Units- or ADUs- have become increasingly popular in recent years as a way to add extra living space or generate rental income on a property.

How Much Does It Cost To Build An ADU?

But just how much does it cost to build an ADU? The answer, of course, depends on a variety of factors. 

In this article, we’ll explore the different costs associated with building an ADU and provide you with a general idea of what you can expect to pay.

Whether you’re looking to build an ADU as a rental property or to provide extra space for your family, understanding the costs involved can help you make an informed decision about whether an ADU is right for you.

What Is An ADU?

An Accessory Dwelling Unit (ADU) is a small residential unit that is self-contained and can be found on the same lot as another main residence. 

ADUs can take many forms, including a standalone unit, an apartment above a garage, or a basement apartment.

ADUs typically include living areas, a kitchen (see also “How To Build An Outdoor Kitchen On A Budget“), and a bathroom, and are designed to provide a separate living space for family members or renters. 

ADUs can provide many benefits, including extra living space, rental income, and increased property value.

The Costs Of Building An ADU

The costs of building an ADU can vary widely depending on several factors, so let’s dive deeper into these factors.

Designs And Permits

Design and permits are essential components of building an ADU, with the process involving creating plans and specifications for the construction of the unit, which will be used by the builder or contractor during construction.

An architect or designer can assist with the design process, and will likely charge a fee for their services.

Permits are required for most ADU construction projects, and the cost of obtaining permits will depend on the location of the property and the specific requirements of the local government.

In some areas, the permitting process can be quite lengthy, which can add to the overall cost.

In general, the cost of design and permits for an ADU can range from several thousand dollars to tens of thousands of dollars, depending on the complexity of the project and the requirements of the local government. 

However, working with an experienced designer or architect and obtaining the necessary permits can help ensure that your ADU is built to code and meets all safety requirements, which can provide peace of mind and help protect the value of your property over time.

Site Preparation 

Site preparation is another important cost to consider when building an ADU (see also “How Much Does It Cost To Build A 1,500 Sq Ft Log Cabin?“).

This involves preparing the land where the ADU will be constructed, which can include grading, excavation, and the installation of utilities and drainage systems.

The cost of site preparation will depend on factors, such as the size and location of the ADU, the condition of the land, and the specific requirements of the local government. 

Much like with the design and permit aspects, site preparation can range from several thousand to tens of thousands of dollars.

How Much Does It Cost To Build An ADU?

If the land is sloped or requires extensive excavation, the cost of site preparation may be higher (see also “How To Landscape A Steep Slope On A Budget“).

As well as that, if utilities such as water, sewer, or electricity need to be installed or upgraded, this will add to the overall cost of site preparation.

Construction 

Construction is the largest cost when building an ADU and will include the size of the unit, the materials used, and the complexity of the design.

ADUs tend to be less expensive to build per square foot than traditional homes, but costs can still range from $150 to $300 per square foot or more.

This means that a 500-square-foot ADU could cost between $75,000 to $150,000 or more to construct, while a 1,200-square-foot ADU could cost between $180,000 to $360,000 or more.

The materials used in construction will also affect the cost.

For example, high-end finishes such as granite countertops or hardwood floors will be more expensive than more affordable options like laminate or vinyl flooring.

Plumbing And Electrical 

Plumbing and electrical costs are another important consideration when building an ADU, as these systems are essential for a comfortable and functional living space.

The cost will depend on the complexity of the design and the materials used.

Plumbing costs will include the installation of fixtures such as sinks, toilets, and showers, as well as the connection to water and sewer lines. 

Electrical costs will include the installation of wiring and fixtures such as lighting, outlets, and switches. 

Work with a licensed plumber and electrician who can provide an accurate estimate for the cost of plumbing and electrical work, and ensure that all work is done to code and meets safety requirements. 

Finishing

Finishing costs are another important consideration when building an ADU.

This includes the installation of finishes such as flooring, cabinets, countertops, paint, and trim.

Finishing costs will depend on the materials used and the overall design of the ADU.

For example, high-end finishes such as granite countertops or hardwood floors will be more expensive than more affordable options like laminate or vinyl flooring.

Other finishing costs to consider include the installation of appliances, such as a refrigerator, stove, and washer and dryer, as well as the cost of any necessary furnishings.

Final Thoughts

Building an ADU can be a great investment for homeowners looking to increase the value of their property, create additional rental income, or provide a separate living space for family members or guests. 

However, it’s important to carefully consider the costs involved in building an ADU- such as those we have mentioned in this article- to ensure that the project stays within your budget.

An ADU can truly be a rewarding investment, providing additional income and living space for you and your family. 

By carefully considering the costs involved and planning accordingly, you can ensure that your ADU project is a success!

Luke Powell
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