{"id":15910,"date":"2025-02-19T16:22:20","date_gmt":"2025-02-19T23:22:20","guid":{"rendered":"https:\/\/www.neighbor.com\/storage-blog\/?p=15910"},"modified":"2025-04-02T13:06:14","modified_gmt":"2025-04-02T20:06:14","slug":"how-much-does-an-adu-increase-property-value","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-much-does-an-adu-increase-property-value\/","title":{"rendered":"How Much Does an ADU Increase Property Value? (ADU Types with the Highest ROI)\u00a0"},"content":{"rendered":"\n

The accessory dwelling unit market was valued at 3.3 billion in 2023<\/a> and is projected to reach $10.6 billion by 2030.<\/strong> Property owners continue to use accessory dwelling units (ADUs) to generate rental income, accommodate multi-generational living, and add value to their primary residence. <\/p>\n\n\n\n

If you have recently constructed an accessory dwelling unit (or you’re in the process of building one), it’s essential to understand the impact this ADU will have on your total property value. In a worst-case scenario, your upfront costs could exceed the potential property value increase–in which case, the ADU will never <\/em>pay for itself<\/em><\/a>. <\/em><\/p>\n\n\n\n

On average, an ADU project can cost up to nearly $200,000<\/strong>, but is the total impact on property value proportional to those upfront costs? <\/em>We’ve got those answers and more. <\/p>\n\n\n\n

In this article, we’ve compiled a list of the common ADU types and provided insight into their return on investment potential. <\/p>\n\n\n\n

ADU’s With The Highest ROI <\/h2>\n\n\n\n

The garage conversion is one of the more affordable ADU project options you can choose. As you’ll notice in the table below, all costs will vary based on location and even the difficulty of the project. <\/p>\n\n\n\n

The garage conversion offers a higher return on investment<\/strong> thanks to its manageable cost and the significant value it can add to your home. <\/p>\n\n\n\n

While attached ADUs and above-garage ADUs provide cost savings by leveraging existing structures, detached ADUs offer the most privacy and rent potential<\/a> but require new foundations and separate utilities, increasing costs. <\/p>\n\n\n\n

Tiny home ADUs<\/a> are the least expensive option but have zoning restrictions and limited resale appeal, which can impact their ROI. No matter the ADU type, location, demand, and construction difficulty, it will ultimately influence costs and the overall return on investment.<\/p>\n\n\n\n

Rank<\/strong><\/td>ADU Type<\/strong><\/td>Approx. Cost Range<\/strong><\/td>Average Size (Square Foot)<\/strong><\/td>ROI Potential<\/strong><\/td>Estimated Value Increase<\/strong><\/td><\/tr>
1<\/strong><\/td>Garage Conversion ADU<\/strong><\/td>$50,000 – $100,000<\/td>300 – 600<\/td>High (60–80%+)<\/td>$80,000 – $180,000<\/td><\/tr>
2<\/strong><\/td>Attached ADU<\/strong><\/td>$100,000 – $250,000<\/td>400 – 800<\/td>High (60–70%+)<\/td>$130,000 – $340,000<\/td><\/tr>
3<\/strong><\/td>In-Law Suite<\/strong><\/td>$60,000 – $150,000<\/td>350 – 700<\/td>Moderate to High<\/td>$100,000 – $255,000<\/td><\/tr>
4<\/strong><\/td>Above-Garage ADU<\/strong><\/td>$150,000 – $300,000<\/td>400 – 800<\/td>Moderate to High<\/td>$180,000 – $425,000<\/td><\/tr>
5<\/strong><\/td>Detached ADU<\/strong><\/td>$150,000 – $350,000 (or more)<\/td>400 – 1,200<\/td>Moderate (50–70%)<\/td>$225,000 – $510,000<\/td><\/tr>
6<\/strong><\/td>Tiny Home<\/strong><\/td>$30,000 – $100,000<\/td>100 – 400<\/td>Moderate<\/td>$55,000 – $170,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Source 1<\/em><\/a>, <\/em>Source 2<\/em><\/a>, <\/em>Source 3<\/em><\/a>, <\/em>Source 4<\/em><\/a> <\/em><\/p>\n\n\n\n

\n \r\n
\r\n
\r\n

Can we pay you to store vehicles?<\/h2>\r\n <\/header>\r\n
\r\n
\r\n
\r\n <\/path>\r\n <\/path>\r\n <\/svg><\/div>\r\n

List your unused space<\/h3>\r\n

People are earning $1,000s per year from their garages and outdoor space.<\/p>\r\n <\/div>\r\n

\r\n
\r\n \r\n <\/path>\r\n <\/svg>\r\n <\/div>\r\n

Approve your renters<\/h3>\r\n

You're in control. Approve who rents and the hours of access.<\/p>\r\n <\/div>\r\n

\r\n
\r\n \r\n <\/path>\r\n <\/svg>\r\n <\/div>\r\n

Get paid monthly<\/h3>\r\n

Sit back and collect automatic payments each month.<\/p>\r\n <\/div>\r\n <\/section>\r\n