How Much Should An ADU Cost?

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    Building an ADU is a costly, yet rewarding endeavor. The problem is that you run into a number of contractors that will try to overcharge you or not work out your budget correctly if you don’t have a lot of knowledge on the subject. So, how much should an ADU cost?

    ADU Construction Estimates

    A free ADU construction estimate is not going to give you the full picture of what everything is going to cost you. You need to consult with a professional ADU contractor and ensure they take everything into account before believing their estimate.

    You should take the time to research yourself what everything is going to cost including:

    • Regulations and codes
    • Design
    • Plans and permits
    • Materials
    • Scope of work
    • Time frames

    Your ADU contractor should be able to walk you through step by step what you will need to do to construct your ADU. From there, they should be able to build you a fully comprehensible budget that takes into account possible setbacks.

    ADU Construction Costs

    The size, type, and design preference all influence the total cost of your ADU. It is like building a house. Not every house is going to cost the same.

    Therefore, the exact cost of your ADU can be drastically different than someone else’s. To give you a ballpark idea though, the average total cost of a 499 squarefoot ADU with a single bedroom and bathroom is around $113,000-138,500.

    ADU Financing

    These large numbers can scare some people off from building an ADU. However, it is important to note that there are a number of ways to finance your ADU, and that you could potentially make money off of your ADU by renting it out.

    The five most common ways people finance their ADU is with:

    • Existing cash they have saved up
    • Support from family or friends
    • Cash-out refinance loan
    • Home equity loan
    • Renovation loan

    You don’t have to pay for your whole ADU out of pocket. Plus, if you work with a professional ADU constructor, you should be able to find ways to make the project more affordable for you.