The cost for an accessory dwelling unit (ADU) in Los Angeles can range from $50,000 to $400,000 or more.
There are a number of factors that can impact ADU costs in Los Angeles, and we’ll take a look at those factors as well as how to reduce costs. We’ll also focus on the long-term financial benefits of owning an ADU in L.A. Let’s dive in!
As we mentioned, the average cost to build an ADU in Los Angeles can range from $50,000 to over $400,000. This all depends on a number of factors like the overall size, materials used, design, location, and more. Here’s a breakdown of varying levels of build as well as the cost ranges we typically see.
Basic-Level ADU Build: On average, $50,000 - $150,000
Overview: A basic build will typically include a straightforward design and low-cost materials such as vinyl flooring, entry-level cabinetry, and more affordable appliances. There is typically limited customization and minimal upgrades.
Mid-Level ADU Build: $150,000–$250,000
Example: If you’re interested in a mid-level build, you’ll typically find a more enhanced finish and design with upgraded features including quartz countertops, hardwood floors, and upgraded appliances.
High-Level ADU Build: $250,000–$400,000
Example: At the other end of the spectrum, you’ll likely see full custom designs and the best finishes, including marble countertops, top of the line appliances, and upgraded fixtures.
Let’s look into how the costs are distributed for different factors:
Construction: 60–70% (includes framing, roofing, and structural elements)
Permits: 5–10% (building permits, utility connection fees, and inspections)
Design and Engineering: 10–15% (architectural plans and structural engineering)
Materials: 15–20% (flooring, cabinets, countertops, and finishes)
Labor: 20–30% (contractor fees, plumbing, and electrical work)
Utilities: 10–15% (installation or extension of plumbing, gas, and electrical systems)
Landscaping and Miscellaneous: 5–10% (site prep, driveways, and other details)
The cost for an ADU also depends on the square foot of land you own. Here are the typical costs for the following sites:
The factors influencing the cost of an ADU in Los Angeles include the type of ADU you choose, the size and design, the quality of materials and finishes, and any additional appliances or fixtures you add.
These factors will impact how much you’ll spend on your new ADU in Los Angeles. Let’s go through each to help you plan your budget.
The type of ADU you choose will affect the overall construction budget. There are several options of ADU you can choose from:
Tip: If your goal is to save on construction cost and labor expenses, prefabricated ADUs might be the way to go.
The size and design of your ADU are about 10-15% of your total budget. Larger units can take up more of your budget, while smaller units require less. Here are the different sizes and design options you can look for:
Tip: Look for professionals who can help with designs that balance functionality and affordability to help control costs.
Material choice is one of the biggest impacts to the overall cost of the project. Material costs can range widely, from $10,000 to $50,000 or more. Standard materials can cost anywhere between $10,000 -$15,000 on average, which likely includes laminate countertops and vinyl flooring. Premium materials include marble counters and custom cabinetry and may cost above $50,000.
Tip: Use mid-range materials for durability without overspending.
The appliances and additional fixtures you add to your ADU are completely optional. However, they can improve both the functionality and aesthetics of your ADU. Basic appliances and fixtures, such as standard sinks and faucets, cost $2,000–$5,000. High-end fixtures like smart refrigerators or premium lighting can cost over $20,000.
Tip: Invest in energy-efficient appliances to lower long-term utility bills.
Utilities are also a big expense when constructing an ADU. These are usually fixed depending on the specific area or company you are for, but typically range from:
Tip: Work with experienced professionals like our ADU builders in Los Angeles to ensure utility installations meet local codes.
The conditions and location of the site you choose can also be a major part of your cost to build an ADU. Grading and site preparation for sloped lots or uneven terrains can cost $5,000–$15,000. Sites with limited access to equipment and materials may require additional labor and machinery, adding $10,000 or more. Removing old structures like a garage costs $1,000–$10,000, depending on the size and complexity of the removal.
Tip: Conduct a detailed site survey early in the process before building an ADU to identify potential challenges and costs.
You need to make sure you get the necessary permits and pay the regulatory fees to make your ADU legally compliant with Los Angeles codes. The costs for permits are as follows:
Tip: To avoid delays, make sure you research local requirements and factor ADU permit cost early into your budget.
Our team can handle every aspect of your ADU construction with expertise, from design to electrical to plumbing to installations and more. Our quality work delivers great results. In Los Angeles, labor costs typically range from $50,000-$100,000 depending on the scope and complexity of the project.
Tip: Invest in experienced professionals. This guarantees a smooth renovation and outstanding outcomes.
To reduce the cost of building an ADU, you can go for cost-effective materials, optimize the design to make it more cost-efficient, or work with experienced professionals who can provide a more cost-effective layout with minimal wastage or errors. A detailed overview of reducing the cost of building an ADU is as follows:
You need to hire a contractor to build your ADU for the following reasons:
Local building codes and Zoning regulations affect ADU costs by determining the design, placement, and compliance requirements of ADUs. These codes and regulations make sure that your ADU is safe and compatible with the neighborhood, but they can increase the costs through fees, design adjustments, or additional permits.
Here are some local codes and regulations you must be compliant with and the costs associated:
The long-term financial benefits of owning an ADU include rental income, property value increase, and potential tax advantages. An ADU can generate consistent monthly income that can cover the initial investment within a few years. It also boosts property value, making your home more appealing to buyers in the future. You can also get tax deductions related to maintenance, depreciation, or interest on loans used for ADU construction.
Here are some common questions about ADU construction costs in Los Angeles.
The average ADU cost in Los Angeles is $150,000, with a range from $50,000 to $400,000 depending on size, type, and materials. The factors that influence these costs are site conditions, labor, and utility connections.
Yes, prefabricated ADUs can save money by reducing labor and construction time, with costs ranging from $70,000 to $150,000. However, transportation and site preparation may add to the overall expense.
The time to build an ADU in Los Angeles is approximately 6–12 months, depending on size and complexity. However, it can take more time due to permitting, weather, or material availability.
Yes, you can finance the construction of an ADU through home equity loans, personal loans, or ADU-specific financing programs. These options provide flexibility in managing construction expenses.
Yes, there are grants available for building an ADU in Los Angeles, such as the CalHFA ADU Grant Program, which offers up to $40,000. You can also look into other local programs that may provide funding assistance.
Yes, ADUs can add value to your property by increasing livable space and rental income potential. They also make homes more attractive to buyers by boosting the resale value of your home.
A 2-bedroom ADU in California typically costs between $200,000 and $350,000 but depends on size and materials. Custom designs and premium finishes may increase the price even further.
Yes, you can build a 2-story ADU in Los Angeles if it complies with height and zoning regulations. You may need to go for additional structural engineering and permits for such designs.
Khaled Dasher, CEO and founder of Avenue Remodeling, is a visionary entrepreneur and general contractor specializing in luxury property development, from sophisticated single-family homes to high-end pools and multifamily projects.