The cost of building an ADU in Los Angeles will vary greatly between people due to the different size and design choices. Depending on what type of ADU you choose to build will also greatly affect your building costs.
Different Costs of Building ADUs
When looking through an ADU guide to determine if building one is right for you, costs will probably be a major factor. You need to take into consideration the three main areas of expense.
Permit Expenses
Permit expenses don’t just include the cost of the permit. They also include the cost of the designing and planning that goes into acquiring the permit. These costs will of course vary by size of the ADU you plan to build because larger structures take more time to plan out.
On average though, they are between $8,000 and $15,000.
City Fees
In LA there will be city fees that will need to be paid. On average, these are between $4,000 to $8,000.
Construction
ADU Construction includes both the cost of the laborers, as well as all the materials that go into it. On average, this is about $200-$250 per square foot.
Total Costs of Building ADUs
The cost of converting your garage into an ADU can fall anywhere between $60,000 and $100,000. It all depends on the size and interior design aspects whether you fall on the higher or lower end of this range.
If you’re considering building an ADU from the ground up, it can cost anywhere between $100,000 to $400,000. This is such a large range because of:
- Access
- Location
- Number of stories
- The size
Generally, though, it will cost around $300 – $400 per square foot.
Financing an ADU
As you can see, an ADU can be quite expensive. Luckily, there are a few different ways to pay for one.
- Cash-out refinance loan
- Existing cash savings
- Home equity loan
- Renovation loan
With all these different loan options, you should be able to find one that will work well for you. If you decide to rent out your ADU when it’s completed, you can use that rental money to pay back your loans.