Are ADUs in California a Good Investment?

According to data from the California Department of Housing and Community Development, part of the State Real Estate Division (SERD) at the California Department of Finance, many homeowners in California are interested in building ADUs on their properties. SERD’s annual Housing Survey found 2.5 million homeowners said they’d consider building ADUs, and more than a million already have them. Of the homeowners who said they’d consider building an ADU, 74 percent said they’d do so because it could help them get extra income from renting out rooms, while another 69 percent said it would be an investment that produces returns later when they sell their homes.

Building an ADU in California can be a great investment, providing both extra income and added living space. If you’re thinking about building an ADU, it’s important to know your reasons for doing so. The pros from Forever Builders, the full home and kitchen remodelers San Diego homeowners trust for exceptional craftsmanship and outstanding service, discuss some factors to consider before deciding if it’s worth it to build an ADU in California.


The cost of building an ADU in California depends on the size and features you want to include. The cost will also depend on whether you hire a contractor to build it for you or you do it yourself. Keep in mind that there may also be additional costs such as permits, fees, and utility connections.

Zoning Regulations

Before building an ADU, it’s important to check the zoning regulations in your area. Some cities and counties have specific rules and regulations regarding the size, location, and use of ADUs. Check with your local government to see what the requirements are before you start the building process.


Building an ADU is an investment, and it’s important to consider the rent you can charge for the unit. In California, the average monthly rent for an ADU ranges from $1,000 to $2,000. This can be a great source of extra income, especially if you live in a high-demand area.

Increased Property Value

Building an ADU can also increase the value of your property. According to Zillow, homes with ADUs have higher values than those without them. This means when it’s time to sell your home, you could get a higher price for it.

Lifestyle Benefits

Building an ADU can provide many lifestyle benefits, such as extra living space for family members or guests, a space for a home office or gym, or even a rental unit for extra income.

Potential Downsides

While there are many benefits to building an ADU, there are also potential downsides to consider. For example, the building process can be lengthy and complicated, and there may be unexpected costs along the way. Additionally, if you plan to rent out the unit, you’ll need to be prepared to handle the responsibilities of being a landlord.

Building an ADU in California can be a great investment, providing extra income and added living space. However, it’s important to consider the costs, zoning regulations, rentability, increased property value, and lifestyle benefits before deciding if it’s worth it. If you’re ready to take on the challenge, building an ADU can be a rewarding experience that will provide benefits for years to come.

When you’re ready to add an ADU to your home, make sure to hire the best contractors in the business. The team from Forever Builders are the experts in home renovation San Diego homeowners can trust to provide the most affordable home remodeling services and ensure their visions become reality. From design to completion, we’ll help you create the home you’ve always wanted, meeting all your expectations while keeping your costs within budget. To find out more about our outstanding remodeling services, give one of our friendly team members a call today at (833) 243-5624.

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