Cheapest ADU to Build in Sacramento, CA

Accessory dwelling units (ADUs) are affordable, smaller homes built within the square footage of your existing backyard. Yet, many homeowners wonder how to make their ADU construction project even cheaper to align with a moderate budget.

Whether it’s choosing a more space-efficient design, allowing you to save on ADU maintenance, sourcing long-lasting materials to minimize future repairs, or using DIY or prefab methods, let’s explore different opportunities to cut costs for your new construction in Sacramento!

ADU Project and Possible Cost Savings

ADU cost consists of fixed costs and variable costs. Fixed costs don’t change based on the ADU size or complexity and encompass architecture and design costs, permit fees, expenses for connecting utilities, and site work expenses. Variable costs involve costs of building materials, labor, or extra features and amenities you chose to incorporate.

Let’s explore how to minimize or offset some of the construction costs during ADU development!

Save Costs by Implementing Effective Design

Have you heard that a smart design may solve a lot of issues? By building an ADU with consideration of money-saving design and construction solutions, homeowners may achieve very cost-effective construction.

Here, we have collected a few tips on how to create more affordable housing by choosing the right design for your backyard ADU:

1. Optimize your space and build smaller ADUs equipped with all amenities to utilize every inch of your property to its fullest;
2. Choose effective layouts that incorporate open-concept areas or multi-functional furniture to make small spaces look bigger;
3. Create good access to natural light for an inviting ambiance, better ventilation, and cost savings on heating and cooling;
4. Opt for materials that are both affordable and sturdy, balancing immediate savings with long-term benefits such as a long time of ADU service;
5. Utilize recycled or repurposed items for construction and finishes;
6. Repair old appliances or borrow them from other homeowners if used gently. Also, note that full-sized applications are usually paradoxically cheaper than downsized ones;
7. Employ insulation and features to boost water or energy efficiency.

Besides, in order to avoid your ADU losing its future value, make sure the living conditions are good for daily life. It will help to avoid spending money on repairs and remodeling to change lacking aspects. Likewise, create wide doorways for better access and freedom of movement; ensure privacy by separating visually or physically from your sleeping area or positioning your windows and doors strategically.

Existing Structures Use

Capitalizing on an existing structure is a way to add extra living space and not become broke! When you start an ADU construction project from scratch, you can save on several costly stages of building, like foundation, framing, installation of the roof, and so on. The less you need to do, the fewer materials and labor you have to pay for!

The best ways to repurpose existing structures or objects include the following:

• Garage conversions. You can build a garage conversion if your garage’s structural integrity is good. Your designer can determine if it’s possible to convert it or not. A converted garage allows you to cut costs significantly and use the same structure all over again.
• ADU above a garage. Putting an ADU above the garage is not only about saving space on your property but also about creating an affordable ADU. That’s because, like a garage conversion, it leverages the existing construction, requires fewer materials and labor compared to a standalone one, and boasts a quicker build time. But don’t forget to make sure your garage can support an ADU.
• Basement ADU. Another way to create an affordable ADU is to repurpose one of the unused rooms in your main house. To qualify as an accessory dwelling unit, your unit must be self-sufficient and include a sleeping area, a functional kitchen, and a bathroom. Also, it should not be smaller than 150 sq. ft.
• Shipping containers. Have you ever considered arranging a living space inside a shipping container? First, you need to estimate if the container is suitable for habitation, then insulate the walls, ceiling, and floor. Next, you plan where to place windows and doors and how to organize living areas, as well as utilities. This small space can work for you and is extremely budget-friendly.

After we have discussed cost-effective designs and ways to spare on existing unit utilization, let’s also explore ways to reduce the total cost by organizing a reasonably priced construction!

Cost-Effective Construction Process

Another way to cut the overall cost of the ADU project is to plan your expenditures wisely. Firstly, start with research and precise budgeting, deciding how much you are willing to spend on each part of the process.

Besides, if some of the accessory dwelling unit building stages do not require high skill or technicality, you can sometimes do them DIY. Or, you can order a complete prefab ADU construction that features way lower costs than a custom ADU due to its standardization and streamlined process.

In addition, to reduce costs, it’s a good idea to find a local contractor. Local builders specializing in ADUs have a thorough grasp of the zoning regulations, permitting procedures, and construction expenses specific to your locality. For instance, they can ensure compliance with building codes and ordinances established by local governments or choose ADU layouts that can save you tons of money (e.g., ADUs under 750 sq. ft. are exempt from impact fees in CA).

If you live in Sacramento, California, the team from A+ Construction & Remodeling is willing to handle your ADU project! We’ll help you choose the best-fitting ADU layout, design, and collection for your dream ADU with respect to the desired budget.

Accessory Dwelling Unit to offset expenses.

Besides learning about the ways to build an ADU in a more cost-effective way, it’s important to remember that tiny homes can compensate for the price you spent on them, which means they offer a great return on investment. This way, a homeowner can use an ADU as a rental property, bringing in generous rental income that covers your monthly expenses or gradually offset construction costs.

In addition to rental income, an ADU on your land has the great potential to increase your overall property value, resulting in a higher price on resale. That’s due to the fact that potential buyers may perceive an ADU house as an upgrade to the property, which is one of the factors that may allow the homeowner to gain good revenue.

Thus, in the best-case scenario, if you plan to sell your property sometime in the future, it makes sense to build an ADU, rent it out for several years, and when your ADU starts to pay off, market the whole property to another buyer, maximizing your gain!

Finance ADUs

Access to funds is a crucial aspect of the ADU project. We’re glad to inform you that there are different financial help choices available to homeowners so they can complete their ADU development objective.

One of the most lucrative financing options is government aid. Governments offer programs for the local homeowners to help them with ADU building. These initiatives may encompass subsidies, preferential-rate loan programs, or tax benefits aimed at promoting the development of ADUs.

One of the famous grant programs in California is the CalHFA ADU Grant Program, which offers up to $40,000 for ADU pre-development. Also, if you rent out an ADU, you may be eligible to deduct certain expenses related to the ADU as business expenses. As an example of a lucrative loan option that your bank may offer, we can name a home equity line of credit. You can access funds by borrowing against the equity in your home.

Surely, there are plenty more potentially profitable financial incentives for homeowners in California. Thus, when building an ADU, we recommend homeowners explore all opportunities and financial incentives in order not to miss out on their benefits!

Get an Estimate of Your Project From A+

The key to keeping your budget at bay is meticulous planning of expenditure items. Clear pricing and a deep understanding of every aspect of ADU building are points that lead to the most cost-effective solutions.

At A+, we offer services to examine and evaluate every aspect of the construction project. Our experienced specialists know what models of kitchen cabinets cost moderately and serve for many years without failure. We provide our clients with quality ADUs made from sturdy materials and equipped with energy-efficient features. Also, we order from trustworthy suppliers with whom we’ve been working for years, minimizing disruptions and waste.

Our ADUs are functional and eco-friendly, which not only benefits the environment but also saves you from massive impact fees. If you’ve decided to build an affordable ADU on your lot in California, reach out to learn more about our quote!

Frequently Asked Questions — FAQ

Are attached ADUs cheaper than detached ADUs?

Quite often, an attached ADU will be cheaper than a detached ADU due to a variety of reasons. The lower costs may be the result of factors such as shared walls or sometimes even foundations, which reduce material costs. Besides, attached ADUs often share utilities with the main house, resulting in savings from the lack of need to create new connections.

What makes a prefab ADU a more budget-friendly option?

A prefab ADU project is typically cheaper than custom ADU construction because workers manufacture ADUs in factory settings in a more streamlined way (thanks to assembly lines and specialized tools). Also, an off-site setting leads to a reduction of material waste, which also allows for maximizing savings. Moreover, pre-designed layouts and models use standardized components and materials, saving on extensive detailing.

Why are garage conversions cheaper than new-construction ADUs?

Since you already have a part of the construction in place for a garage conversion project, you don’t need to start entirely from step one. This means less construction work and fewer construction materials required for the full-ready unit development.

Is ADU more affordable housing than a traditional home?

Yes, an ADU is a smaller-scale home that has its own entrance and all amenities. The smaller home allows for sparing on its construction as well as on permit and impact fees. Besides, with more compact footage, your ADU consumes less energy and water than a full-fledged house, allowing homeowners to save on utility bills.

How much does a cheap ADU cost in California?

Generally, an ADU built in a budget-friendly manner in California may cost from $50,000 to $100,000. These are mainly conversions, prefab ADUs, or ADUs with a small footprint. If you don’t know where to find good financing options for your project, contact A+ specialists to assist in your ADU development dream!