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How Should I Budget an ADU?

When it comes to building an ADU it is important to consider the size of the project. Your Accessory Dwelling Unit can be used for various purposes, and the choices will also depend upon the size of your budget. The first question is whether you want to use an existing structure or whether you want to expand into the backyard? The great news is that there are a range of options for various budgets, and there are immense benefits to building an ADU on your property in Los Angeles.

CHOOSE YOUR TYPE OF CONSTRUCTION

If you choose to work with the existing structure, the next question is to the specific type of construction. Do you want to build up from what you already have, to keep all of the existing walls, or even to create a second storey? Would you prefer to expand on the first level, and if so, what will that look like with regards to your backyard? With a free ARM Builders consultation we can show you various options that will fit both your budget and your goals for the project, and help you select the architect engineering plans that are best suited for your property.

WHAT KIND OF FINISHES WOULD YOU LIKE WITH YOUR BUILDING MATERIALS?

The next stage in the budget process is to start choosing what kind of finishes you would like in your ADU. Are you going for a glass-and-steel high-end stylish look? Is your ADU intended to be an additional home for your family, a granny flat, an AirBnB or even low-cost housing for tenants who have a separate entrance? “Begin with the end in mind” as the proverb goes, and this is never more true than with a building project. Lower-cost materials are not necessarily bad, but it is very helpful to know why you are building your ADU, how you would like it built, and who you think will be using it. There is a middle ground where you can get decent materials at mid-price range. Whatever your intended purpose, ARM Builders always recommend you build with the highest possible quality building materials so that your project meets building code, is a safe place to live, and has both longevity and long-term flexibility.

WHAT IS THE ULTIMATE USE FOR YOUR ADU OR JADU?

Whether you are going for an Accessory Dwelling Unit (ADU) or a Junior Accessory Dwelling Unit (JADU), it is important to know who you think will be using it. You may choose to save money and not install a washer/dryer if there will only be short-term tenants, like with an AirBnB, but we do recommend keeping your options open if you think that you might want to change its usage later on, perhaps for a long-term residence. This is always cheaper to plan at the outset rather than trying to retroactively plumb in appliances once the ADU has been built, and we are happy to provide you with all of the necessary information you will need to make your decision.

ADU BUILDING COSTS PER SQUARE FOOT

It is helpful to get an approximate idea of building costs, and these are broad figures which can vary plus or minus 15%. If you are converting an existing unit then it will cost approximately $200 per sq ft. Expanding the first level (ground level) costs around $250 per sq ft. Building a second storey or expanding higher will cost closer to $300 per sq ft.

The important thing to remember is that an ADU can substantially increase the value of your property in Los Angeles, so if you are thinking of getting a conversion done, it is better to act sooner rather than later. Get in touch today for your free consultation with ARM Builders.

CHECKLIST: Long-term plans for your ADU – use the existing structure or build new? Choose your type of construction – expand your ADU? What kind of finishes would you like with your building materials? What is the ultimate use for your ADU or JADU? ADU building costs per square foot.

Contact ARM Builders for your free ADU quote!

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Whether you're looking for rental income, space for family, or a way to maximize what your property can do — an ADU is one of the most valuable projects a Los Angeles homeowner can take on. Let's talk about yours.

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ARM Builders, Inc. · CSLB Lic. #915352 · 877.755.1350 · armbuildersinc.com