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A modern prefab ADU with solar panels in a Sacramento suburb, showcasing clear skies and a hint of the city skyline.

Is it cheaper to build an ADU in Sacramento in 2025?

Addition of ADU in Sacramento during 2025 brings substantial benefits because of rising housing expenses combined with space requirements. This study investigates the primary elements which impact ADU building prices by reviewing both site-specific variables and both types of units along with structural dimensions. The article introduces local government financial programs in addition to grants and loans which assist homeowners through their projects’ financial aspects. Having a clear comprehension of these factors enables smoother construction projects at affordable prices when building an ADU.

Isometric aerial view of a single-family home in California with an attached accessory dwelling unit (ADU).

How much does an ADU cost in California? (2025)

Increasingly homeowners throughout California decide to construct Accessory Dwelling Units due to their ability to optimize property space. Property owners who want to build either functional ADUs or rental units should understand all the associated expenses.
ADUs present three important benefits to homeowners through property value improvement and expanded living area and potential rental earnings. The rising urban demand requires knowledge about ADU construction costs to assist with financial planning.

A 3D rendering of a modern accessory dwelling unit in a Melrose, Massachusetts backyard.

ADU Options Explained: Room Conversion vs. Garage Conversion

Converting existing spaces into ADUs (Accessory Dwelling Units) with the help of an ADU architect can reduce costs and speed up the construction process. Converting rooms or garages offers more affordable solutions, with costs ranging from $40,000 to $150,000. Additionally, these options don’t require extra land space, making them ideal for smaller properties. Conversions can generate rental income and increase property value.