adu construction cost

The ADU construction cost is one of the things that many homeowners in Los Angeles consider. It’s either they know about the overall cost or they know the cost and they can’t afford it. However, we all know that anything that involves building construction requires an investment. Thus, instead of focusing on the cost of constructing an accessory dwelling unit (ADU), you should consider whether or not it’s all worth it. 


What is the ADU Construction Cost? 

The median cost of an ADU is $150,000. But it can cost less than $100,000 or it can go higher than $250,000. It all depends on the location. If you think you can’t afford it yet, you should know that there are financing options available. 


You can pay a portion of the construction in cash while you loan money from a bank to help you pay for the remaining cost. You may also ask for money from your friends and relatives. But you need to remember that constructing an ADU can help you generate income. 


Can You Rent Out an ADU? 

One of the reasons many Los Angeles homeowners want to construct an ADU in their properties is that they can use it to help in generating additional income every month. In California, half of new ADUs are income-generating rental units while an insignificant portion of ADUs don’t generate income. That’s why even if you spend more than $100,000 constructing an ADU, you still have an ROI after a few months or years. In that case, it’s all worth it to start this plan. 


Does It Add Value to Your Property? 

You would think that it’s a huge expense. But as mentioned, it’s actually worth it because it can add value to your property. It’s especially true if you’re renting it out. 


Even if you’re not planning to rent it out, it can still add value when it’s time to sell your property. An ADU can boost your property’s value so you get a better offer. However, it still depends on the type of ADU you build. 

adu construction cost

Will People Rent Out Your ADU? 

ADUs are increasingly popular. Many people are looking for an ADU rental because it’s cheaper than renting an apartment, house, or condo. It’s one reason ADU rentals are filling like hotcakes. Many homeowners in LA are generating a significant amount of money. Hence, it’s well worth the investment. 


The income-generating from your ADU unit can cover your utility costs. It will pay for itself in a few years. But of course, it will depend on market fluctuations. The bottom line is that an ADU can provide you with an investment opportunity. It’s a beneficial construction project that you might want to seriously consider. 


However, if you’re not sure how to start, you should consult with our ADU experts. Los Angeles Retrofit and Construction, Inc. has been building ADUs for many years. We specialize in ADU construction and home remodeling. To inquire about the estimated ADU construction cost on your property, please contact us here: (818) 975-8323


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