How ADU Add Value For Home And Increase Income For Homeowners

An accessory dwelling unit (ADU) is the most reasonable alternative to increase the value of the home while you are weighing your available options. However, despite the countless possibilities and specifics at play, one question frequently arises in response to this situation. To what extent does adding an ADU boost your property’s value?

Suppose you don’t work with a professional company that can assist you in planning out every detail, including the design work, permits, and even patch-in quotes from local contracting firms. In that case, this is a difficult question to answer with a concrete number. If you do work with a professional company, however, you should be able to get an accurate estimate. Our company, Superb Engineer, is equipped with all of the necessary expert resources to assist you in design and construction administration phase.


What exactly is an ADU?

A secondary living area that is either attached to or erected on the property of an existing residence is referred to as an accessory dwelling unit (ADU). They can either be rented out to make a profit or utilized to gain additional living space.

In this piece, we will touch on three primary categories of accessory dwelling units (ADUs), namely attached, detached, and interior conversions. 

ADU (Attached)

• Garage conversion (if the garage is connected to the house)• Additions to the second story (they can be made to either the main home or the attached garage)• “Mother-in-law suite” is one of the brand-new extensions to the main house.

Detached ADU

• Garage conversion (when the garage is separate from the house)• A “backyard cottage” or “granny flat” that has been newly built from the ground up is referred to as “new construction.”

Interior ADU

• Remodeling of the inside of the basement apartment and the attic 


How Much Does It Expense to Include an ADU in a House?

It is challenging to provide a broad estimate of the cost of constructing an ADU. There is a wide variety of options for accessory dwelling units (ADUs), and each one calls for a very different degree of maintenance and upkeep.

To give one illustration, the cost of transforming your garage into another room in your home might range anywhere from $30,000 to over $60,000. While, the cost of constructing a brand-new addition to the house might range anywhere from $50,000 to $100,000 or even higher. In extremely unusual circumstances, the overall cost of constructing a backyard cottage from the ground up has been reported to reach a staggering sum of 360 thousand dollars.

Even though the construction phase of the project will account for the vast majority of the total cost, you should not forget to factor in the costs associated with the design phase, the planning phase, acquiring the necessary permits, the costs associated with hiring a surveyor, and any other costs associated with getting everything in order before you begin building.

Consultation with an ADU design company like ours is the best (and easiest) method to obtain a concrete handle on what you should expect to pay for adding an accessory dwelling unit. We have worked in the industry for a significant amount of time, and as a result, we are very familiar with the procedure.

It Is Capable of Producing Rent Income

The most typical motivation for homeowners to build an ADU is to supplement their income with rental revenue.

Extra income is not anything to be ashamed of, regardless of whether you are having trouble paying your mortgage or are doing well financially. In point of fact, detached ADUs can be rather lucrative, to the point where the rent collected can cover the mortgage and any additional housing expenses. Because of this, while you are paying off your loan, you will essentially be able to live rent-free!

This is the case if you have the space to construct an apartment with two bedrooms and two bathrooms. This would not only make it much simpler for you to rent out the space, but it would also boost the potential cash that you could receive from renting it out. Suppose you hire an architect who is qualified for the task and has the necessary experience. In that case, it shouldn’t cost significantly more than a standard studio apartment with a single bedroom and bathroom. This is the most highly advised course of action since you can obtain an additional income of up to $3,000 per month, depending on where you live.

The addition of an ADU to your property will increase its value.

ADUs not only bring in extra money every month but also raise the value of your house when it comes time to sell it!

A well-constructed detached accessory dwelling unit (ADU), for example, has the potential to raise the value of the house by a stunning 20-30 percent. That’s astonishing! Even more astounding is that your ADU may provide you with a practically instant return; we have witnessed some projects contribute twice as much to the property’s value as the costs associated with developing them.

Having said that, it is essential that, when planning and constructing your ADU, you keep the remainder of your property in mind at all times. If the new room doesn’t seem to go in with the rest of the house or has an uncomfortable appearance compared to the other features, the value of your property may go down. 

On the other hand, if your accessory dwelling unit (ADU) was constructed in a chic method and blends in with your primary residence and the surrounding area, it will have a fantastic impact on your property’s subsequent valuation. Additionally, if your house is the only one on the street that has an accessory dwelling unit (ADU), the value of your property will rise proportionally.

An accessory dwelling unit can be an investment opportunity.

Not only would the addition of an ADU to your house improve its value, but it will also provide you with additional monthly income. It is possible to sell it independently from the rest of your property!

ADUs are an excellent choice for first-time real estate investors who do not yet have the financial wherewithal to venture into the “open waters” of the real estate market, represented by multi-family homes, condominiums, and other expensive types of properties.


Overall, the value that an accessory dwelling unit (ADU) may bring to your life is virtually unbounded. Everything hinges on your motivation for taking on the job and the results you anticipate achieving as a result of your efforts. You don’t need to worry about anything when it comes to ADU projects because Superb Engineer is capable of designing and constructing them with our partner general contractor team.

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