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Business & Finances

Is Building an ADU Worth the Money?

Did you know that there are close to 1.4 million ADUs in the United States of America? Many homeowners find the appeal of building an ADU irresistible but there are a number of things that you’ll want to consider before you move forward with building one of your own, such as the ADU cost.

You’re likely aware that you’ll need some money to cover the cost to build ADU on your property, but you need a good idea of how much does it cost to build an ADU. This will help you to make sure that it fits within your budget.

If you’re not sure about how much does an ADU cost then you’re in luck. You’ve come to the perfect place to learn all about the ADU building cost as well as the cost to convert garage to ADU. Keep reading this article to learn more today.

What Does an ADU Cost?

Before you get any price estimates on ADU building cost, it is a good idea that you make sure that you’re allowed to build an ADU on your property. Once you’ve received the green light to proceed you can start looking into the cost of building an ADU.

There are a number of variables that affect how much your ADU will cost to build. The size and the building materials play a big role in the cost of your ADU. One thing to keep in mind is that it will cost you less to expand onto your existing home than it will to build a separate area with an ADU.

The average cost of building an ADU on your property is around $200 to $300 for every square foot of the structure. If this is out of your budget then you should consider getting ADU financing to make your dream ADU a reality. With those numbers, the math spells everything out.

If you want to build a 1,000 square foot ADU then you’re looking at spending around $200,000. A great way to make building your ADU more affordable is to consider the cost to convert garage to ADU. This is easier since the garage is a structure that is already built and ready to go.

The only cheaper route to take for an ADU is to convert your home’s basement into an ADU. Make sure that you check out your state and local laws to ensure that your building of an ADU isn’t against the law. This is important to know before you start investing thousands of dollars into the project.

Benefits of Building an ADU

There are a number of great benefits that you’ll gain when you choose to build an ADU on your property. There is a reason why they’re growing in popularity at a rapid rate across the United States of America.

Here is a closer look at the benefits that you’ll gain when you move forward with the cost to build ADU at your home.

Passive Income

Building an ADU on your property is a wonderful way to make some passive income that you can use to supplement your primary source of income. If you’ve always wanted to own a rental property but didn’t want to make the big investment to get one then an ADU is the perfect compromise.

You already own the land that you’ll build it on which means it will be much cheaper than starting a construction project on land that you had to purchase. Make sure that your ADU has a kitchen, bedroom, and bathroom so that it has everything that it needs in order to accommodate a renter.

It is up to you to decide if you want to rent it out on a short-term basis through services like Airbnb or Vrbo, or if you’d rather find a monthly tenant that plans to stay there on a long-term basis. Either option is a great way to make a hefty amount of passive income each year.

Boosts Your Property Value

Another big benefit that you’ll gain from adding an ADU to your property is a massive boost to your property’s value on the market. This is a big deal if you plan to sell your home at any point in the future. This is one of the most popular reasons that people give for building an ADU on their property.

You can even focus on converting your home’s garage into a separate living area rather than starting new construction on an ADU. This is a great option if you’re working with a tight budget.

Most people that are in the market to purchase a home will pay a good deal more to get one that has an ADU that comes with it. Keep that in mind if you’re on the fence about getting an ADU and you’re worrying about ADU cost.

Guest House

If you have family that lives out of town then your ADU is the perfect place for them to stay when they come to visit. It is great because it allows them to be close without disrupting your daily routines during their stay. It also gives them a greater level of privacy when they’re staying with you.

Low-Cost Housing for Elderly Family Members

Another big reason that people choose to take on the ADU cost to add one to their home is as a place for an elderly relative to live. This is much cheaper and easier than finding a nursing home or assisted living center and it allows your elderly relative to stay close to family.

At the same time, it allows them their independence and ability to live on their own.

Start Researching the ADU Cost for Your New ADU

One of the big things that you’ll need to know when you’re looking at how much does an ADU cost is your reasoning for building the ADU. Besides that, the most important thing that you’ll need to know before you start building is the total ADU cost. Make sure that you understand the cost of the building materials you want to use as well as the size of the ADU when determining cost.

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