ADUs are no cheap investment. That is why you should be aware of ADU cost along with ADU value. These two factors may be a big deciding point in whether or not you are able to successfully build an ADU.

Cost Of ADU Development

There are four main ADU development costs:

  • Design and planning
  • City fees
  • Construction labor and material
  • Finish materials

These four sections will determine how much your ADU will cost you overall. Most of them can be cut down to be more affordable except the city fees section. City fees are a pretty flat rate for everyone within the city. The only variation you will see here is if you decide to build one in a different city.

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Costs Of Each Main Section

Design and Planning usually cost around $6,000.00 to $14,000.00. City fees are usually about $3,000.00 to $11,000.00. Your construction labor and materials will be around $250.00 to $300.00 per square foot for new construction and finish materials will be around $50.00 to $75.00 per square foot.

Total ADU Cost

Therefore the total ADU costs of a new construction 499 SQ ft would be around $161,700 – $201,125. This is very open to change depending on the size of the ADU and your design preferences. Also, the type of ADU you choose can save you quite a bit of money. For example, doing a garage conversion instead of new development would put you down in the $90,000 – 119,000 range.

Value of ADU Development

ADU development can be quite valuable to you, your community, and your environment. For starters, you will be increasing the value of your home significantly by adding an ADU. Not to mention you could be gaining extra income from renting out your new ADU too.

Your community will benefit from the ADU if you rent it out by having an affordable housing option. Since ADUs are so small, they don’t have as many bills associated with them. As a result, they can be rented out at a much more affordable price.

Finally, the environment will benefit as well by having a sustainable, small impact house for someone to live within.