If you own a home in Los Angeles, an Accessory Dwelling Unit (ADU) might be the smartest investment you can make right now. With LA’s housing demand at an all-time high and new state laws making ADU permits easier to get, more homeowners are building ADUs to generate rental income, house family members, or dramatically increase their property value.
What Is an ADU?
An ADU — also called a granny flat, in-law suite, or backyard home — is a secondary residential unit on your property. It can be detached (a separate structure), attached (connected to your main home), or a garage conversion. Junior ADUs (JADUs) are smaller units created within the existing footprint of your home.
Why Build an ADU in Los Angeles?
There are several compelling reasons LA homeowners are rushing to build ADUs:
- Rental income: A well-built ADU in LA can generate $1,800–$3,500/month in rental income depending on size and location.
- Property value: ADUs typically add $200,000–$400,000+ in property value in the LA market.
- Family housing: Keep aging parents or adult children close while maintaining privacy.
- Streamlined permitting: California AB 2221 and SB 897 have significantly reduced ADU permit wait times and fees.
How Much Does an ADU Cost in Los Angeles?
Costs vary depending on size, type, and finishes — but here’s a general range for LA:
- Garage conversion ADU: $80,000 – $150,000
- Attached ADU: $150,000 – $250,000
- Detached ADU (new build): $200,000 – $400,000+
- JADU (Junior ADU): $30,000 – $80,000
What Does the ADU Process Look Like?
At Ivory Home Builders, we handle the entire ADU process from start to finish:
- Site evaluation & feasibility: We assess your property and determine what ADU types are allowed under current LA zoning.
- Design & plans: Our team creates architectural drawings tailored to your goals and budget.
- Permit application: We handle all city permit submissions and follow-ups — one of the most complex parts of the process.
- Construction: Licensed crews handle foundation, framing, MEP (mechanical, electrical, plumbing), insulation, and finishes.
- Final inspection: We walk the project through final city inspection to get your certificate of occupancy.
Ready to Build an ADU in Los Angeles?
Ivory Home Builders Inc. has built ADUs across Los Angeles — from Inglewood and Hawthorne to Manhattan Beach and El Segundo. We’re a licensed, insured general contractor with the experience to deliver your project on time and on budget.
Call us today for a free ADU consultation and estimate. We’ll walk your property, explain your options, and give you a realistic picture of costs, timeline, and return on investment.