Why are so many homeowners building an ADU on their property? After designing and building many ADUs, here are the most common reasons we’ve seen clients build an ADU. If you are interested in building an ADU on your property, click the Get Started button below.

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Increasing your Property Value

ADUs are a highly effective tool for increasing the value of your property. With an ADU, you can add up to an additional 1,200 square feet onto your property (this varies depending on the city). The investment typically makes sense if the cost per square foot to build is less than the sale price per square foot. In other words, if you can build for cheaper than you can sell it, it is worth considering from a purely mathematical standpoint. Many other variables need to be factored into the equation to determine the exact financial upside, but gauging the difference between build cost and sale cost is a good way to get started.

Flexibility of Use Overtime

In many scenarios, ADUs can have significantly more value than the base market rate of cost per square foot. A homeowner has many different income and/or lifestyle options with an ADU on the property. It gives them a wide range of flexibility for the future, each of which will have different levels of value for the buyer. Over time, the uses of an ADU can adapt and change with the different seasons. Some examples of those options are discussed below.

Rental Income

An Accessory Dwelling Unit is a great way to generate income and cover the monthly payments on your home mortgage. For prospective renters, an ADU is often more desirable than an apartment, thus demanding a higher rental rate. An ADU can offer more privacy, independence, and quieter living conditions that mimic many of the positive qualities of a single-family home. This typically means that the risk of vacancy can be quite low.

Aging Relatives

Building an Accessory Dwelling Unit for an aging relative can be beneficial both financially and personally as it would allow you to keep your relative close to home and save money on the cost of Assisted Living Facilities or Nursing Homes. The cost of Assisted Living Facilities and Nursing Homes is staggering, ranging from $5,250 - $13,630 per month, it is clear to see the savings potential from building an ADU for your relative. Aside from saving on the costs associated with Assisted Living and Nursing Homes, housing an aging relative in your ADU provides peace of mind, knowing they are nearby and being cared for properly. Some relatives may require additional live-in assistance, in which case one of Rost Architects’ two-bedroom ADU floor plans can provide a solution for creating space for a live-in caregiver. Additionally, Rost Architects’ Accessory Dwelling Units are designed with a high level of accessibility.

Workspace

A growing number of U.S. workers are choosing to work from home, avoiding a daily commute and saving on the cost of office space. An Accessory Dwelling Unit can provide a designated space to keep your work separate from your home, allowing you to focus your time as needed. Having an environment separate from your primary residence, where you are able to focus and allocate large chunks of time to deep work, can greatly improve productivity and mental clarity.

Home Gym

We’ve seen a growing interest in ADUs designed to serve as a home gym or wellness center. Interest in cold plunges, saunas, fitness equipment, and yoga areas in their ADUs is becoming more frequent. Building in space to facilitate personal health can be one of the best investments a person can make. In addition, it can help reduce the cost of gym memberships. Instead of paying a monthly membership, you can invest that money into an ADU and build equity in your own property.

If you’re not sure where to get started on exploring your Accessory Dwelling Unit project, click the get started button below to schedule a preliminary consultation with Rost Architects.

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