How Much Value Does an ADU Add to Property Value?


One of the highest-selling market trends in the real estate business today is the Accessory Dwelling Unit (ADU). Generally speaking, accessory dwelling units are additions or conversions built to any residential home to function as an extra self-contained living or work area on the property.

ADU designs vary significantly from different areas and even by their type. Also, ADU construction requires a property valuation process since any addition to your residential property affects its worth. This factor often makes homeowners curious about one thing: how much value does an (ADU) Accessory Dwelling Unit add to the property?

In just a few, we’ll dig into how adding an ADU unit increases property value. First, let’s take a look at the various types of accessory dwelling units and their benefits.

The 3 Different Types of Accessory Dwelling Units

Three of the most common types of accessory dwelling unit construction and design in Los Angeles are the following:

Attached Unit Conversion

An attached accessory dwelling unit is joint on a residential building, often on an existing family home. It expands the size of the primary home while offering flexible solutions for the applications to be added to the unit. One of the best benefits of having an attached dwelling is the increased living space for a growing family. An efficient design and planning process can indeed be advantageous for the whole property. Many homeowners convert the existing attached garage space.

Detached Garage Conversion

Some ADU’s are also constructed by converting an existing detached garage. They are separate from the primary home but on the same lot.

This ADU type offers other benefits that an attached conversion can’t. Most importantly, detached conversions are often designed for additional privacy.

Second Floor Conversion

You can also convert an attic space or add a 2nd floor to a garage in order to create a 2nd floor or two story ADU. A second-floor conversion can be more complex than adding a detached accessory dwelling unit. However, it can always be made possible with expert design, planning, and construction. 


One thing ADUs have in common is the design efficiency to make them affordable for homeowners. Innovative building aspects are considered to maximize the property’s functionality and increase its value in the process. Therefore, if you choose to add an addition to your primary home, you should get help from an experienced real estate agent or builder. Adding a converted ADU  to your primary residential building is also different from purchasing a “made-to-order” accessory dwelling unit. 

Benefits of Accessory Dwelling Units

Building profitable residential properties incorporated with an attached dwelling unit has been around for decades. The concept of ADUs used to be new for many people. But because of its financial benefits, ADUs became one of the top investment methods in the real estate industry. Although ADU conversion involves affordable housing development considerations, it provides an immense result in business profit. Here are some of its top benefits:


An accessory dwelling unit is also considered a self-contained unit due to the fact it typically comes with complete applications according to its purpose. Perhaps, it could have a living area, bedroom, kitchen, and bathroom. Some ADUs are converted for fully-functional office spaces. This makes them an excellent choice for rental property, especially apartments or co-working hubs.

Quick Turnaround

The procedure of altering a single-family dwelling into a multi-unit dwelling by changing the zoning from single-family to multi-family status, or multi-unit commercial zoning, takes a little longer than converting the adjacent single-family property.

Converting an accessory dwelling unit requires primary construction systems. It might include having sufficient room on the lot for equipment access to the area where the ADU will be placed, adequate footings on the property, and more. Once these requirements are met, you’ll be looking at a much faster turnaround for the results you want.

Affordable Budget

One of the main reasons people opt for these types of construction options is because they offer a cheaper alternative to traditional solutions.

When looking at traditional housing construction plans, there are not that many applications that you can add to a residential building that makes it stand out unless you’re willing to shell out a lot of cash.

Maximizes Property Space

Another significant benefit of having one of these accessory dwelling units is that the property landscape will be greatly reduced and converted to more valuable space. These ADUs will also give you the option to build a deck or other additional structure.

Converting An ADU To Your Primary Home Increase Property Value

Profitable Asset

For rental properties, self-contained ADUs add to the property value. These applications are fully-furnished and generally very hard to replace due to their efficient function in the property. The features can easily attract possible future buyers and renters, which totally works to your advantage.

How Much Value Does An (ADU) Accessory Dwelling Unit Add?

ADUs, notably detached conversions, can increase property value by 20-30%. You can even flip them professionally! The addition itself can help the property reach up to double its original value, considering the building costs, and gain a quick return of investment.

In Conclusion

Accessory dwelling units can add value to your property while creating additional living space for your family. It provides more flexibility for using the space you already have available in your home and provides a second place to raise the children if necessary. On a similar note, a detached ADU offers an opportunity to profit from your investment in the building costs. You can charge monthly rental for extra income with a fully-furnished and functional ADU. Whether you plan to rent it out or simply want to expand your property’s range of performance and value, adding an ADU is indeed an excellent option for a profitable investment.

Now you understand how adding an accessory dwelling unit to your home can increase your property value. Talk with your realtor about how you can start planning for an ADU conversion that’s best suited for your property. And when it comes to the designing and construction processes, be sure to work with qualified ADU contractors to explore all of your best options. They can walk you through the process to make sure your new extension is built to code.

If you plan to add an accessory dwelling unit to your home, ensure optimum results with the right assistance! Angelus Construction specializes in ADU Construction in Los Angeles. Our approach is reliable, easy to work with, and provides you the most expert service for your ADU construction. Contact us today for a free consultation about a project you have in mind!

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