By Eric Enns – CEO and President | October 21, 2024

If you’ve been following real estate trends over the past few years, you might have come across the term ADU and wondered, “What the heck is that?” ADU stands for Accessory Dwelling Unit, but it goes by many other names—like Granny Flat, Mother-in-Law Unit, Guest House, Man Cave, Pool House, or even She-Shack.

So, what exactly is an ADU? Essentially, it’s a smaller secondary dwelling on a property that already has a primary residence. These units are versatile and can serve a variety of purposes.

Garage converted into a custom ADU that serves as a guest house and bakery.

What Makes an ADU Special?

An ADU typically includes a kitchen and can be legally rented out, providing property owners with an additional income stream. Alternatively, it can be used as guest quarters for visitors or as living space for family members or friends.

Size-wise, ADUs generally range from 250 square feet and up. They can be simple, no-frills units or luxurious, spacious homes, depending on what suits the property best. The size of an ADU is often dictated by the dimensions of the primary dwelling, property setbacks, and lot coverage limits. Additionally, sewer or septic systems can also impose size restrictions.

Introducing JADUs

Another intriguing option for homeowners is the JADU, or Junior Accessory Dwelling Unit. Unlike traditional ADUs, JADUs are typically attached to the primary dwelling and come with a separate entrance. They are often converted from garages or similar spaces. JADUs may not always include a full kitchen and are generally smaller. These units are perfect for rentals, accommodating aging parents, or providing a child with some independence while remaining connected to the family.

Pricing and Trends

When it comes to pricing, the cost of building an ADU can vary significantly, ranging from $75,000 to $500,000 and beyond based on size and features. In our local market, most ADUs seem to average around 750 square feet, with costs hovering around $200,000 if they are not overly complex.

Pre-approved layout built to be a rental.

Conclusion

In summary, ADUs and JADUs offer flexible living options that can enhance your property’s value and functionality. Whether you’re looking to generate income, accommodate family, or create a personal retreat, these units are a worthwhile investment. If you’re considering adding one to your property, it’s essential to understand the local regulations and market trends to make the best decision for your needs. Happy building!