How much does it cost to add an ADU?
As is so often the case with the question of cost, it depends on what you want to create, the opportunities your property presents, and how much work you can do on your own. When calculating your budget, keep in mind that the costs of building an ADU will be offset in the future by the passive income stream, tax benefits and increase in the value of your home.
If you are planning to convert a detached garage that already has electrical and / or water hook-up, it will cost a lot less than a new build to add to your existing home. If you are starting out with no obvious candidate for conversion, you may want to consider a small turnkey home. There is an emerging market for options tailored to your space and needs.
The turnkey approach
There are turnkey approaches, such as buying a shed house or reused shipping container homes, which simply need to be connected to utilities. There are custom build options as well as luxury upgrades. You don’t have to sacrifice the “wow” factor of your home just because you don’t need a lot of space.
According to Home advisor, most people spend around $ 45,000 to buy a small house, but there are simple versions that cost as little as $ 8,000 and small houses with luxury upgrades that can cost as much as $ 150,000. This means that an average small home costs $ 150 per square foot, with high-end models ranging from $ 300 to $ 400 per square foot. If your mini-house will be a permanent structure, as opposed to a mobile unit, you will also need to factor in the cost of laying the foundation (around $ 4,500 to $ 9,000) and the cost of connecting the house to the house. water, sewers and energy sources.
The DIY approach
If you are reasonably skilled, you may be able to build your own house. A simple Google search will give you a wide variety of small house kits that you can buy online, including kitchen and bath. You can purchase kits ranging from blueprints and instructions to complete kits that include all of the blueprints and materials you will need. There are plenty of stories about resourceful people who have built their own houses for less than $ 1,000.
Garage or shed conversion
Many homeowners have small outdoor buildings, usually garages, on their property that they may be able to convert into ADUs. Converting existing space tends to be less expensive than undertaking new construction on your home.
As with a small house, there are a plethora of resources available online, along with blueprints and step-by-step instructions, should you choose to DIY it. If you are able to do a good deal of the work yourself, you will be able to save a considerable amount of money.
If you hire a contractor, you can expect to pay between $ 10,000 and $ 50,000. Much depends on the current condition of your garage, what you plan for the converted space, whether you plan to include a kitchen in the conversion, and how complex it is to hook up your garage to electrical utilities, water and sewer.
A word of warning, however, before choosing this option: If you live in an area where off-street parking is difficult to find, converting your garage may actually lower your home’s value. Talk to a real estate agent who knows about your neighborhood and ask their advice on swapping a parking space for a living space.
Addition to your home
Another way to add an ADU to your home is to install one on your current home. According to Home Advisor, you can expect to pay $ 21,259 – $ 71,851 for the new addition of an ADU. Why the range? Again, it all depends on what you want to accomplish. If you want to add a full living space, with kitchen and bathroom, it will probably cost you close to $ 100,000 or more. If you want to add a second floor at your current ranch, you can expect to pay between $ 200,000 and $ 400,000.
However, of the three options, new construction on your home is likely to increase your home’s value the most, if the addition is done right.