ADU Construction Market in California

Budgeting for an ADU in California primarily depends on the type of construction. Garage conversions are the most cost-effective starting point, typically around $150k, whereas custom detached units can easily exceed $350k. Your location and finish materials will drive these costs up or down. We recommend gathering multiple quotes to get a realistic picture for your specific property.

Homeowners in premium markets like Los Angeles or the Bay Area should anticipate higher baseline costs. Prefab ADUs are excellent for keeping timelines and budgets fixed. If you need to keep costs low, look into converting an existing structure. Several state-wide financing programs can help bridge the gap.

When planning your ADU unit, you have two cost-effective options: prefab ADU construction or garage conversion ADU. Prefab ADU solutions offer faster construction times and predictable ADU unit cost, making them ideal for homeowners who want a streamlined process. These factory-built ADU units can be installed in as little as 3-6 months, significantly reducing your overall ADU cost.

Alternatively, garage conversion ADU projects utilize existing structures, dramatically lowering your ADU unit cost. A garage conversion ADU typically costs 40-60% less than new construction, making it an attractive option for budget-conscious homeowners. Both prefab ADU and garage conversion ADU options can generate significant rental income, helping offset your initial ADU cost investment.