ADU California: How Much Value Is Added to a Home?
Did you know that having a granny flat on your property can increase your home’s value by 30%?
While this figure may be different in different parts of the world, adding an ADU in California is one of the best ways to add space and value to your property.
ADUs can come in a wide range of shapes and sizes. This is why it’s important to look through the various options to find the right ADU for your home.
Interested in learning about ADUs? You’re in the right place. Here’s everything you need to know about what an ADU is and how much value it can add to your home.
What Is an ADU?
An ADU is an accessory dwelling unit. This is the term given to a small secondary home located on your property. These homes have full amenities, including a bathroom, kitchen, storage, and sleeping area.
These dwelling units can be a great way to expand your home and increase the value of your property. ADUs can serve multiple purposes, making them a great long-term investment for you and your family.
Accessory dwelling units can also be a cost-effective way to add more usable space to your home. This can also come in handy if you have kids that are growing up and may need a little more space.
While there are many benefits of building an ADU in California, the underlying fact is that they are incredibly diverse. This makes ADUs one of the best ways to upgrade and invest in your home.
What Kinds of ADUs Are There?
Accessory dwelling units come in all shapes and sizes. These units can also be personalized to fit the exact style, design, and space you have available. Here are some of the most popular and useful kinds of ADUs you can add to your home.
Granny Flat
Homeowners around the world actively look for homes with granny flats on the property. This is because many families will often want to have loved ones and grandparents live nearby. Granny flats or backyard apartments will allow them to live comfortably with you while still retaining their privacy.
New homeowners have also noted that homes with granny flats in them sell for significantly higher prices. This means that adding a granny flat to your home is more than likely going to increase its value if you plan to sell it later on.
Guest House
Even if you don’t think you will need extra space for the family to live with you full time, an ADU can be useful as a guest house. This is perfect for whenever you may have guests over to spend the night. This can be a great improvement from a simple guest room as it gives your guests a lot more privacy and comfort.
Investment Property
Accessory dwelling units can also be a great investment. While these units do increase your property value, they can also help you bring in passive income. This can be a great investment later in life as it can help increase your income during retirement.
As an investment, your ADU can be a passive source of income. This means that it can consistently generate an income for your family without you having to do anything besides general admin and maintenance.
What Can an ADU Be Used For?
An accessory dwelling unit can be used in a variety of different ways. While this makes it a great investment, it also adds a lot of value to your home. Here are some of the most practical and useful ways you can use an ADU.
Extra Storage
An ADU can be the perfect storage solution for your home. This can help declutter your garage and keep the entire home neat and tidy. ADUs can be built as playhouses for your kids as well. This is a great way to store all their toys and give them a designated space to play, that is helpful day to day, but tremendously flexible when other housing needs bubble up in your life.In-Law Suites
One of the most common uses for ADUs is for in-law suites. These dwellings are specifically designed as backyard apartments to provide your in-laws with their own space and privacy whenever they come over to stay long-term. A common occurrence for families welcoming new children.
This can help save you quite a bit of money if you normally book your family members into local guest houses and hotels. Or get you out of a bind if you don’t have enough room or comfortable space for long-term guests.
Space For Children
Building an ADU is a great long-term investment. If you have children, an ADU can come in handy for when they are children and as they grow up.
As your children grow, they may want more privacy at home, or need help getting off of the group (more and more common in California) This is where an ADU can come in handy as it can be converted into a small apartment. Allowing them to have their own space can also help give them a little taste of what it’s like to live on their own.
Passive Income
Adding an accessory dwelling unit to your property can also provide you with an additional source of income. This can be a useful form of passive income for you and your family, especially when you decide to retire later on in life.
This is one of the major reasons why ADUs can increase your property value as potential buyers see the income-generating potential.
Home Office
With more people working from home than ever before, you may be thinking about investing in a home office. When considering a home office, it’s always important to keep your workplace separate from the rest of your home.
This is why an ADU can be the perfect solution. You can customize the space to be the perfect home office and even include a lounge and meeting room for clients that want to come over. This is also a great way to keep things professional when working from home.
Private Guest Space
Having space for guests to come over is one of the best aspects of being a homeowner. Building an ADU on your property will allow them to stay the night as well. This is a significant upgrade from a standard guest room as it gives your guests more privacy.
Your ADU can also be used for entertaining guests. Since you can personalize the space, you can extend it to include additional rooms and even a patio for outdoor entertainment.
Benefits of Building an ADU in Your California Home
ADUs are versatile and practical additions to your home. These dwellings can range in size, style, and design to match your home perfectly. Thinking of investing in an ADU? Here are some of the benefits of building an ADU on your property.
Have Space for Older Family Members
Many older adults would prefer to stay with family instead of moving into a retirement home. While we all may love having our elderly with us, there may not be space. This is why building an accessory dwelling unit can be so beneficial.
An ADU can help keep your loved ones close by while maintaining their privacy and comfort. This can also be a perfect solution for live-in caretakers and aids that would need to move in as well.
Save Money
Booking family members and house guests into hotels for frequent, long-term stays can get very expensive. This is why having the extra space on your property can come in handy. Especially if you have grandparents staying for weeks (or months) at a time, your ADU can end up saving you so much money that it effectively pays for itself. Not to mention the long-term added value.
Increase Your Property Value
New homeowners understand the value and utility of an ADU on the property. Regardless of its use, it’s well reported that homes with ADUs sell for much more than standard homes. While this increase can vary from state to state, you can expect a 20% to 30% increase in property value. Even more in California depending on the quality of your ADU.
Great Long-Term Investment
Investing in an accessory dwelling unit is not a small investment. While the overall cost depends on your property, jurisdiction, design and finishes, this is still a solid investment to make. Investing in an ADU can directly impact the value of your property in a big way.
Even if you don’t plan to sell your home anytime soon, the added space can be considered an investment property. This can end up being a great source of passive income for you and your family later on in life.
Design the ADU for Your Home
Many people don’t want additional buildings on their property because they think the buildings will stand out. However, this is not always the case.
When designing your ADU, you can have complete control over the size, style, and layout of the space. This means that you can personalize every aspect of the building to fit your property perfectly. Whether it’s the exterior finishes or interior quality, you can design the space as an extension of your home.
How Much Land Do You Need for a Backyard ADU?
This is a tough question to answer and almost entirely dependent on the challenges associated with your individual property. Each jurisdiction and neighborhood has different requirements as it pertains to your project, not to mention the specifics of your lot. To get a good answer, reach out to an ADU specialist. A professional will be able to validate what you can and can’t do on your property with a minimal investment.
How Much Do ADUs Cost?
The cost of building an ADU will vary depending on the size, style, quality, and location of your project.. While this is a smaller dwelling, there will still need to be plumbing and electric work done on the building before it’s ready for you to move in. After all, whenever you’re building a new home, the most expensive square footage is always the kitchen and bathroom.
While the expenses can add up, a great ADU company should offer options and let you personalize the space to fit your style and budget. This means that you get control and can help create the perfect ADU for your property.
How Much Value Can an ADU Add to Your Home?
As mentioned above, new homeowners actively seek out properties with ADUs on them. This is because they see the value of an ADU. While the value may differ from state to state, many reports indicate that properties with ADUs sell for 20% to 30% more than standard homes. This also doesn’t include the construction cost which in several cases in the Bay Area has been a 1-to-1 investment for Acton ADU.
This means that you can effectively increase your property value by 25% on top of the cost of the construction when you invest in adding an ADU in your backyard that is of similar quality to an Acton ADU. While adding a backyard dwelling brings financial value, it can add utility to your entire property.
ADUs can instantly become guest houses, in-law suites, home offices, or playrooms. This makes them one of the most practical and versatile investments you can make at home.
Consider Building an ADU in California Today
A detached accessory dwelling unit is a great way to add utility and value to your home. Whether you are looking to add extra space for your family or a way to generate passive income for retirement, building an ADU in California is one of the best solutions. At Action ADU, we specialize in crafting personalized accessory dwelling units. If you have any questions and want to learn more, feel free to contact us today.
