4 Reasons to Build an ADU in Los Angeles

September 28, 2021

Many people are looking for affordable housing, and the choice to build an ADU (accessory dwelling unit) is a great option. ADUs are typically small homes that can be built in backyards or on lots near existing houses. These units are also much more affordable to maintain when compared to single-family houses. They can be kept at a lower temperature when not in use and do not require anything like the same upkeep that traditional housing does—there is no lawn or roofing needed.

Build an ADU

These smaller units allow homeowners to generate income while still living in their larger homes. If you're thinking about having a contractor build an ADU in your backyard, here are 4 reasons why it might be right for you:

1. ADUs are More Affordable Than Traditional Single-Family Housing

The cost of designing and building a new single-family home has gone up dramatically over the last few years while the cost of building an ADU hasn't increased much. The median price for a newly built single-family home in the US was $345,800 in July 2016, according to Census data. In comparison, a typical ADU project can be built anywhere from $75,000 to $360,000, with pricing depending on various factors.

There are a number of factors that can affect the cost of an ADU. For example, the size and location of the property, the design, and the complexity of construction, whether any existing structures need to be demolished, and if any permitting will be necessary. The cost for materials also varies from place to place depending on availability and accessibility.

2. ADUs Can Generate Additional Income for Homeowners

A common problem that homeowners face is how to generate income when they're living in their own house and stop working outside of it like everyone else does after they retire.

ADUs are a great source of rental income for homeowners who want to ensure their living expenses can be paid while still allowing them to stay in their house or move into it without having to go through the process of selling it first and then buying another one.

If you live alone, an ADU is also a good way to help pay the mortgage, especially if you have a lot of equity in your home. This is also perfect for empty nesters who want to downsize their house but still work part-time or start another business that requires them to be at home more often than not.

If you're an investor with several rental properties and need to find another one in a hurry, building an ADU is also a perfect option because there are several ways to generate income with it:

  • Renting it out on Airbnb or other short-term rental sites like HomeAway and VRBO;
  • Renting the unit to long-term boarders who want to live near a family member or close friends;
  • Additionally, Renting it out as a full-time rental.

The possibilities are endless and the opportunities for generating income with your ADU exist throughout most of the year, not just during summer vacations when many homeowners choose to rent their homes through short-term rentals sites like Airbnb.

3. ADUs Offer Additional Security

When you own a single-family house, the only people who can access your home are those with keys or by breaking in through doors and windows. With an ADU on your property, however, you will have additional security because there is another entry point to the unit which makes it harder for would-be burglars to access the property.

4. Build an ADU to Enjoy Additional Living Space

If you live in a small house or an apartment, then having your own ADU in your own LA backyard can be life-changing because it will give you additional living space that is completely independent of the rest of the property. Additional living space is also perfect for homeowners who like to host guests or need a place where they can retreat during the day if needed.

It's also great for those with growing families who want their kids, teens, and even adult children to have an additional area of the house that they can call their own and use as a guest room or home office.

Final Thoughts

The city of Los Angeles has a housing crisis. With so many people living in poverty, the need for accessible and affordable housing is imminent. Fortunately, there are some new solutions that have been popping up over the last few years to help alleviate this problem. One such solution is to build an ADU in Los Angeles; these are referred to as second units built onto existing properties with separate entrances from the main house on a lot.

An ADU can be designed as an independent unit complete with its own kitchen, bathroom, and bedroom; but they also make great multi-generational dwellings when created adjacent to each other (i.e., the 2nd-floor apartment above the detached garage). This type of structure does not require any additional land use permits and can be built onto existing properties, it is a relatively quick and inexpensive solution to the housing problem.

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