As ADU’s grow in popularity, many people are wondering if they should take the time to build one themselves. However, like with all new things, there is that fear that it may not be as great as it seems. Thus leading us to the question, is an ADU a good investment?
How Much Does An ADU Cost?
The first thing everyone wants to know before making an investment is how much it is going to initially cost them. ADU development costs can vary drastically based on your specific space requirements and the type of ADU you are building.
There are four different types of ADU’s grow that you can build.
- Garage ADU
- Detached ADU
- Attached ADU
- Internal ADU
As you can probably guess, a garage conversion or even an internal ADU is going to cost much less than a detached ADU that has to be built from the ground up. To give you a general idea though, a 499 square foot, 1 bedroom, 1 bathroom, ADU will cost in total between $113,300-$138,250.
Benefits of Investing In An ADU
There are a multitude of benefits associated with building an ADU. A few of them include:
- Housing for family members that may be struggling
- Affordable housing opportunities for low income community members
- Income opportunities for you
If you have a parent who is aging and wants to maintain their independence but be somewhere where you can keep an eye on them, ADU’s are the perfect solution. If you are looking for some extra income, ADU’s are also great because you can rent them out and have them pay for themselves. Also, if you are looking to help solve the housing problem in your community, you can rent out your tiny home at prices low income families can afford.
Is An ADU Worth It?
The benefits outweigh the costs of an ADU. Especially if you plan to rent the ADU out, it could pay for itself plus give you extra income. Just be sure that you have a good understanding about everything that goes into building an ADU and you will be fine.
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