{"id":15908,"date":"2025-02-18T17:58:00","date_gmt":"2025-02-19T00:58:00","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=15908"},"modified":"2025-04-02T13:11:40","modified_gmt":"2025-04-02T20:11:40","slug":"how-much-does-an-adu-cost","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-much-does-an-adu-cost\/","title":{"rendered":"How Much Does It Cost to Build an ADU? (Types of ADUs Ranked from Cheapest to Most Expensive)\u00a0"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p class=\"wp-block-paragraph\">Building an accessory dwelling unit or ADU on your property will cost an average of $30,000 (and can reach up to $100,000 when all is said and done).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&rsquo;s important to understand that the following factors will affect cost:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Square footage&nbsp;<\/li>\n\n\n\n<li>The type of ADU<\/li>\n\n\n\n<li>Your location&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In this article, we&rsquo;ll break down <strong>six types of ADUs<\/strong> and the exact costs you can expect for each one.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>(Note: There&rsquo;s more to consider beyond building costs. An ADU project can be time-consuming, and the building process consists of several, often costly, steps. With this in mind, don&rsquo;t go into the project without knowing your stuff).&nbsp;<\/em><\/p>\n\n\n\n<h2 id=\"how-much-does-it-cost-to-build-adu\" class=\"wp-block-heading\">How Much Does It Cost To Build ADU?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>least expensive ADU <\/strong>to consider adding to your property is a<strong> tiny home<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ADU costs increase as you look <a href=\"https:\/\/www.neighbor.com\/storage-blog\/how-much-can-i-earn-by-renting-my-garage\/\">into garage conversions<\/a> and home additions. Overall, the <strong>detached ADU<\/strong> and the <strong>above garage ADU<\/strong> are the <strong>most expensive<\/strong> ADU types.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type of ADU<\/strong><\/td><td><strong>Average Construction Cost<\/strong><\/td><\/tr><tr><td><strong>Tiny Home<\/strong><\/td><td>$30k &ndash; $100k<\/td><\/tr><tr><td><strong>Garage Conversion ADU<\/strong><\/td><td>$50k &ndash; $100k<\/td><\/tr><tr><td><strong>Home Addition<\/strong><\/td><td>$80k &ndash; $200k (1 or 2-story)<\/td><\/tr><tr><td><strong>Attached ADU<\/strong><\/td><td>$100k &ndash; $250k<\/td><\/tr><tr><td><strong>Above-Garage ADU<\/strong><\/td><td>$150k &ndash; $300k<\/td><\/tr><tr><td><strong>Detached ADU<\/strong><\/td><td>$150k &ndash; $350k (or more)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Note:<\/em><\/strong><em> Costs can vary significantly based on location (e.g., labor rates in California vs. the Midwest), project complexity, and materials used.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img  decoding=\"async\"  width=\"831\"  height=\"1024\"  src=\"data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAz8AAAQAAQMAAAD1EHX2AAAAA1BMVEUAAP+KeNJXAAAAAXRSTlMAQObYZgAAAAlwSFlzAAAOxAAADsQBlSsOGwAAAH9JREFUeNrtwQENAAAAwqD3T20ON6AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAL4NpA8AAdOj6akAAAAASUVORK5CYII=\"  alt=\"\"  class=\"wp-image-16208 pk-lazyload\"  data-pk-sizes=\"auto\"  data-ls-sizes=\"(max-width: 831px) 100vw, 831px\"  data-pk-src=\"https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-831x1024.png\"  data-pk-srcset=\"https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-831x1024.png 831w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-243x300.png 243w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-768x947.png 768w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-380x468.png 380w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-550x678.png 550w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-800x986.png 800w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-760x937.png 760w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1-487x600.png 487w, https:\/\/www.neighbor.com\/storage-blog\/wp-content\/uploads\/2025\/02\/ADU-Cost-1.png 2048w\" ><\/figure>\n\n\n\n<h2 id=\"detached-adu\" class=\"wp-block-heading\">Detached ADU<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The detached ADU, also known as a &ldquo;backyard cottage&rdquo; or &ldquo;granny flat,&rdquo; is considered the <strong>most expensive type of ADU<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The average cost is so high because it is built as a completely separate unit from the primary residence. With a detached ADU, a new foundation has to be built, and it will have its own roof and utilities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Expect to pay <strong>at least $150,000 for a detached ADU<\/strong> and, at times, more than $300,000.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction Cost<\/strong><\/td><td>$150,000 &ndash; $350,000 (or more)<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$1000 &ndash; $3,500<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500k home&nbsp;<\/strong><\/td><td>$75,000 &ndash; $150,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$1,000 &ndash; $2,500+<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<html><body><div id=\"in_post\">\n    <a href=\"https:\/\/www.neighbor.com\/host\" onclick=\"rudderanalytics.track('press editorial cta button', {location: 'first in post', version: '2.0'}, () =&gt; { console.log('track call'); });\">\r\n  <div class=\"first-in-post-cta\">\r\n    <header>\r\n      <h2 id=\"can-we-pay-you-to-store-vehicles\">Can we pay you to store vehicles?<\/h2>\r\n    <\/header>\r\n    <section>\r\n      <div class=\"service-option\">\r\n        <div class=\"service-option-icon\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"60\" height=\"60\" viewbox=\"0 0 60 60\" fill=\"none\">\r\n            <path d=\"M26.7552 20.0573C26.2911 20.9853 26.2499 22.3578 26.2499 24.375H33.7499C33.7499 22.3577 33.7088 20.9853 33.2448 20.0573C33.0557 19.6792 32.8 19.3973 32.3888 19.1841C31.9442 18.9535 31.2108 18.75 30 18.75C28.7892 18.75 28.0558 18.9535 27.6112 19.1841C27.2 19.3973 26.9442 19.6792 26.7552 20.0573Z\" fill=\"#005EB8\"><\/path>\r\n            <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M28.0777 4.32887C29.3195 3.87732 30.6805 3.87732 31.9223 4.32887L48.7973 10.4652C51.0173 11.2725 52.5 13.3777 52.5 15.7462V33.1425C52.5 33.7407 52.4058 34.3605 52.1888 34.9629C47.861 46.9738 35.9939 53.5676 32.1164 55.464C30.7986 56.1086 29.2843 56.1505 27.9278 55.5549C23.9729 53.8185 12.0728 47.6941 7.77513 34.8948C7.58399 34.3255 7.5 33.7394 7.5 33.1762V15.7481C7.5 13.3807 8.98165 11.2729 11.2027 10.4652L28.0777 4.32887ZM22.4998 24.1662L22.4999 24.375C20.4289 24.375 18.75 26.054 18.75 28.125V35.625C18.75 37.6961 20.4289 39.375 22.5 39.375H37.5C39.5711 39.375 41.25 37.6961 41.25 35.625V28.125C41.25 26.0539 39.5711 24.375 37.5 24.375L37.5 24.166C37.5016 22.4546 37.5037 20.19 36.5989 18.3802C36.0848 17.352 35.2859 16.4621 34.115 15.855C32.9776 15.2652 31.6017 15 30 15C28.3983 15 27.0224 15.2652 25.885 15.855C24.7141 16.4621 23.9152 17.352 23.4011 18.3802C22.4961 20.1901 22.4982 22.4547 22.4998 24.1662Z\" fill=\"#005EB8\"><\/path>\r\n          <\/svg><\/div>\r\n        <h3 id=\"list-your-unused-space\">List your unused space<\/h3>\r\n        <p>People are earning $1,000s per year from their garages and outdoor space.<\/p>\r\n      <\/div>\r\n      <div class=\"service-option\">\r\n        <div class=\"service-option-icon\">\r\n          <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"60\" height=\"60\" viewbox=\"0 0 60 60\" fill=\"none\">\r\n            <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M13.125 9.375C11.0539 9.375 9.375 11.0539 9.375 13.125V46.875C9.375 48.9461 11.0539 50.625 13.125 50.625H46.875C48.9461 50.625 50.625 48.9461 50.625 46.875V13.125C50.625 11.0539 48.9461 9.375 46.875 9.375H13.125ZM28.125 16.875C28.125 15.8395 28.9645 15 30 15C31.0355 15 31.875 15.8395 31.875 16.875V20.625H35.625C36.6605 20.625 37.5 21.4645 37.5 22.5C37.5 23.5355 36.6605 24.375 35.625 24.375H26.25C25.2145 24.375 24.375 25.2145 24.375 26.25C24.375 27.2855 25.2145 28.125 26.25 28.125H33.75C36.8566 28.125 39.375 30.6434 39.375 33.75C39.375 36.8566 36.8566 39.375 33.75 39.375H31.875V43.125C31.875 44.1605 31.0355 45 30 45C28.9645 45 28.125 44.1605 28.125 43.125V39.375H22.5C21.4645 39.375 20.625 38.5355 20.625 37.5C20.625 36.4645 21.4645 35.625 22.5 35.625H33.75C34.7855 35.625 35.625 34.7855 35.625 33.75C35.625 32.7145 34.7855 31.875 33.75 31.875H26.25C23.1434 31.875 20.625 29.3566 20.625 26.25C20.625 23.1434 23.1434 20.625 26.25 20.625H28.125V16.875Z\" fill=\"#005EB8\"><\/path>\r\n          <\/svg>\r\n        <\/div>\r\n        <h3 id=\"approve-your-renters\">Approve your renters<\/h3>\r\n        <p>You're in control. Approve who rents and the hours of access.<\/p>\r\n      <\/div>\r\n      <div class=\"service-option\">\r\n        <div class=\"service-option-icon\">\r\n          <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"60\" height=\"60\" viewbox=\"0 0 60 60\" fill=\"none\">\r\n            <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M31.2776 51.9974L31.7666 51.5417C32.0789 51.2503 32.527 50.8317 33.0706 50.3224C34.1576 49.3041 35.6276 47.9224 37.158 46.4698C40.1682 43.6127 43.5576 40.3461 44.596 39.1282C46.7163 36.6414 48.1719 33.6468 48.8127 30.4251C49.5529 26.704 49.173 22.847 47.7211 19.3418C46.2692 15.8366 43.8105 12.8407 40.6559 10.7329C37.5015 8.62514 33.7942 7.5 30.0001 7.5C26.2061 7.5 22.4973 8.62504 19.3428 10.7329C16.1882 12.8407 13.7295 15.8366 12.2776 19.3418C10.8257 22.847 10.4458 26.704 11.186 30.4251C11.8268 33.6468 13.2824 36.6414 15.4027 39.1282C16.4411 40.3462 19.831 43.6128 22.8415 46.4698C24.3721 47.9224 25.8422 49.3042 26.9294 50.3225C27.4731 50.8318 27.9212 51.2504 28.2336 51.5418L28.723 51.9979C29.4428 52.6672 30.5579 52.6668 31.2776 51.9974ZM28.723 51.9979C28.723 51.9979 28.7232 51.998 30.0001 50.625L28.723 51.9979ZM30.0001 50.625L31.2776 51.9974C31.2776 51.9974 31.2771 51.9979 30.0001 50.625ZM30 32.8125C33.6243 32.8125 36.5625 29.8744 36.5625 26.25C36.5625 22.6256 33.6243 19.6875 30 19.6875C26.3756 19.6875 23.4375 22.6256 23.4375 26.25C23.4375 29.8744 26.3756 32.8125 30 32.8125Z\" fill=\"#005EB8\"><\/path>\r\n          <\/svg>\r\n        <\/div>\r\n        <h3 id=\"get-paid-monthly\">Get paid monthly<\/h3>\r\n        <p>Sit back and collect automatic payments each month.<\/p>\r\n      <\/div>\r\n    <\/section>\r\n    <footer>\r\n      <button>Learn more about hosting <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"24\" height=\"24\" viewbox=\"0 0 24 24\" fill=\"none\">\r\n          <path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M18.8304 5.17619L4.55227 11.6663H11.1779C11.8199 11.6663 12.3404 12.1867 12.3404 12.8288V19.4543L18.8304 5.17619ZM19.029 3.43822C20.0069 2.99374 21.0129 3.9997 20.5684 4.97757L13.0612 21.4935C12.5438 22.6316 10.8404 22.2627 10.8404 21.0124V13.1663H2.99417C1.74398 13.1663 1.37497 11.4628 2.51312 10.9455L19.029 3.43822Z\" fill=\"#EFF5F8\"><\/path>\r\n        <\/svg><\/button>\r\n    <\/footer>\r\n  <\/div>\r\n<\/a>\n  <\/div><\/body><\/html><h2 id=\"above-garage-adu\" class=\"wp-block-heading\">Above-Garage ADU<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With an above-garage ADU, <strong>you can expect to pay the same amount as you would when constructing an attached ADU<\/strong>. On the flip side, the total cost of an above garage accessory dwelling unit is considerably higher than a garage conversion.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The<strong> issues<\/strong> you may run into with the above garage ADU are generally <strong>structural-related<\/strong>, which can be costly.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Building above the garage requires the garage to be strong enough. In turn, you may have to pay for <strong>additional framing and or footing<\/strong>, which are necessary to support a second story. Sometimes, an<strong> external staircase<\/strong> is necessary to provide tenants access&ndash;which is yet another expense.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the size of your lot is limited, the above garage ADU is a good choice because it takes advantage of vertical space.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction Cost<\/strong><\/td><td>$150,000 &ndash; $300,000<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$400 &ndash; $1,200<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500k home<\/strong><\/td><td>$70,000 &ndash; $140,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$1,000 &ndash; $2,000+<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"attached-adu\" class=\"wp-block-heading\">Attached ADU<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An attached ADU shares at least one wall with your primary home. Thanks to this shared wall, ADU construction costs are slightly lower than those of a detached ADU. <em>Why?&nbsp;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With an attached ADU, you won&rsquo;t have to worry about building a separate foundation, separate plumbing system, or a separate HVAC system.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>permitting costs<\/strong> for an attached ADU are also <strong>lower<\/strong> because the structure is less complex than building something new.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction Cost<\/strong><\/td><td>$100,000 &ndash; $250,000<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$400 &ndash; $1,200<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500k home&nbsp;<\/strong><\/td><td>$60,000 &ndash; $120,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$800 &ndash; $2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"home-addition-pop-out-one-or-two-story\" class=\"wp-block-heading\">Home Addition (Pop-Out, One- or Two-Story)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A home addition extends the footprint of the primary residence. It&rsquo;s a little different than other ADUs as it truly takes advantage of the existing structure. <strong><em>Note: For it to be a true ADU, it has to have a private entrance, kitchen, and bathroom.&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Integrating a home addition with existing electrical, plumbing, and HVAC systems will help keep ADU pricing in check.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction Cost<\/strong><\/td><td>$80,000 &ndash; $200,000<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$400 &ndash; $1,000<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500K Home<\/strong><\/td><td>$60,000 &ndash; $130,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$800 &ndash; $2,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<html><body><div id=\"2_in_post\">\n    <a href=\"https:\/\/www.neighbor.com\/host\" onclick=\"rudderanalytics.track('press editorial cta button', {location: 'second in post', version: '2.0'}, () =&gt; { console.log('track call'); });\">\r\n  <div class=\"second-in-post-cta\">\r\n    <section>\r\n      <div class=\"service-option\">\r\n        <h2 id=\"earn-1000s-per-year-with-your-unused-space\">Earn $1,000s per year with your unused space<\/h2>\r\n        <button>Become a Neighbor host<\/button>\r\n      <\/div>\r\n    <\/section>\r\n  <\/div>\r\n<\/a>\n  <\/div><\/body><\/html><h2 id=\"garage-conversion-adu\" class=\"wp-block-heading\">Garage Conversion ADU<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A garage conversion ADU turns an existing garage into an <a href=\"https:\/\/www.neighbor.com\/storage-blog\/convert-garage-to-living-space\/\">additional living space<\/a>. <strong>When you look at price per square foot, the garage conversion ADU is typically one of the best options<\/strong>. It&rsquo;s a good investment for a property owner who needs more living space but wants to keep the overall cost down.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&rsquo;ll rake in savings because you don&rsquo;t have to build the outer &ldquo;shell&rdquo; of the ADU. In addition, <strong>building permits will come at a lower cost because of the simplicity of the project <\/strong>compared to other ADU options.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction Cost<\/strong><\/td><td>$50,000 &ndash; $100,000<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$300 &ndash; $800<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500k home<\/strong><\/td><td>$40,000 &ndash; $80,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$800 &ndash; $1,500<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"tiny-home-on-wheels-or-foundation\" class=\"wp-block-heading\">Tiny Home (On Wheels or Foundation)<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>tiny home<\/strong> can serve as a fully functional ADU. It often comes at a lower cost, thanks to the size. There are also options for prefabricated models that can be more affordable and require less site preparation<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, be aware that <strong>local regulations for tiny homes can be stricter<\/strong>, depending on whether it&rsquo;s on wheels or a foundation.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Cost Factor<\/strong><\/td><td><strong>Amount<\/strong><\/td><\/tr><tr><td><strong>Construction\/Installation Cost<\/strong><\/td><td>$30,000 &ndash; $100,000<\/td><\/tr><tr><td><strong>Annual Maintenance<\/strong><\/td><td>$200 &ndash; $600<\/td><\/tr><tr><td><strong>Potential Property Value Increase on a $500k home<\/strong><\/td><td>$25,000 &ndash; $60,000+ (approx.)<\/td><\/tr><tr><td><strong>Possible Monthly Rent<\/strong><\/td><td>$600 &ndash; $1,500<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"hidden-adu-costs-property-owners-often-overlook\" class=\"wp-block-heading\">Hidden ADU Costs Property Owners Often Overlook<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While you may be aware of fees for things like construction labor, many other costs associated with an ADU addition will impact your final price. Some of these include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Permit and Impact Fees<\/strong>: Local governments may charge fees for sewer, water, and school district impacts; pricing can range from <strong>$5,000 to $20,000.<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Architectural &amp; Engineering Plans<\/strong>: Custom ADUs require professional drawings and structural engineering to meet code. Hiring these kinds of professionals can cost you anywhere between <strong>$3000 and $15,000<\/strong>.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Utility Upgrades<\/strong>: If your existing water, sewer, or electrical system isn&rsquo;t sufficient, you may need to invest in upgrades that will range from <strong>$2000 to $10,000<\/strong> in additional costs.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Driveway &amp; Landscaping:<\/strong> You may need to extend driveways, add walkways, or install privacy fencing, which can cost anywhere from <strong>$2000 to $15,000<\/strong>.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Insurance Premiums<\/strong>: A second dwelling unit can increase your homeowner&rsquo;s insurance costs by anywhere from <strong>$500 to $2000 per year.<\/strong>&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Furnishings &amp; Appliances:<\/strong> If you plan to rent out furnished ADUs, factor in the cost of appliances, beds, couches, and d&eacute;cor.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financing Costs<\/strong>: If you take out a home equity line of credit (HELOC) or ADU construction loan, <strong>account for interest payments.<\/strong><\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unrented ADUs<\/strong>: If you are building an ADU as a rental property, remember there are times when you may<a href=\"https:\/\/www.neighbor.com\/storage-blog\/how-to-make-money-from-vacant-rental-properties\/\"> have vacancies<\/a>, which will translate to lost rental income. This is a chance to use a platform like Neighbor to rent out the ADU for storage space or <a href=\"https:\/\/www.neighbor.com\/storage-blog\/how-to-make-money-from-vacant-rental-properties\/\">take advantage of unused parking spots<\/a> to generate income during these times.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-long-would-it-take-for-an-adu-to-pay-for-itself\" class=\"wp-block-heading\">How Long Would It Take for an ADU to &ldquo;Pay for Itself&rdquo;?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Looking at the information above, you see that by the time you factor in design costs, construction maintenance, and more, an ADU doesn&rsquo;t necessarily pay for itself right away. Of course, the value of a property will be higher once the ADU is added, but it can take a long time for an ADU to <a href=\"https:\/\/www.neighbor.com\/storage-blog\/how-to-make-land-pay-for-itself\/\">completely pay for itself<\/a>. This table gives a very simple look at how this works and does not include the appreciation of property value.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Type of ADU<\/strong><\/td><td><strong>Avg. Build Cost<\/strong><\/td><td><strong>Est. Monthly Rent<\/strong><\/td><td><strong>Years to Pay Off (at 100% Occupancy)<\/strong><\/td><\/tr><tr><td><strong>Detached ADU<\/strong><\/td><td>$150k &ndash; $300k<\/td><td>$1,000 &ndash; $2,500<\/td><td>8 &ndash; 25 years<\/td><\/tr><tr><td><strong>Attached ADU<\/strong><\/td><td>$100k &ndash; $250k<\/td><td>$800 &ndash; $2,000<\/td><td>7 &ndash; 20 years<\/td><\/tr><tr><td><strong>Above-Garage ADU<\/strong><\/td><td>$150k &ndash; $300k<\/td><td>$1,000 &ndash; $2,000<\/td><td>10 &ndash; 25 years<\/td><\/tr><tr><td><strong>Garage Conversion ADU<\/strong><\/td><td>$50k &ndash; $100k<\/td><td>$800 &ndash; $1,500<\/td><td>3 &ndash; 10 years<\/td><\/tr><tr><td><strong>Home Addition ADU<\/strong><\/td><td>$80k &ndash; $200k<\/td><td>$800 &ndash; $2,000<\/td><td>5 &ndash; 15 years<\/td><\/tr><tr><td><strong>Tiny Home ADU<\/strong><\/td><td>$30k &ndash; $100k<\/td><td>$600 &ndash; $1,500<\/td><td>3 &ndash; 10 years<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"final-thoughts\" class=\"wp-block-heading\">Final Thoughts&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While ADUs can boost a property&rsquo;s value, they come at a significant cost. Remember that the space you use to build your ADU can also be <a href=\"https:\/\/www.neighbor.com\/storage-blog\/how-to-start-a-storage-unit-business-with-no-money\/\">used for storage or parking<\/a>. If you are simply looking for a way to generate rental income using your existing property, consider working with Neighbor.com. Neighbor is a leading peer-to-peer storage platform that will help you offset lost rental income or utilize space to make extra money.&nbsp;<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"Building an accessory dwelling unit or ADU on your property will cost an average of $30,000 (and can&hellip;\n","protected":false},"author":34,"featured_media":16093,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":""},"categories":[204],"tags":[],"class_list":["post-15908","post","type-post","status-publish","format-standard","has-post-thumbnail","category-real-estate-investing","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Much Does It Cost to Build an ADU? 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