ADUs (accessory dwelling units) have grown in popularity as a way to add more living space to a home, and open up the possibility of multi-generational living or renting. But does adding an ADU to your property also increase the value of your home? Let’s explore.

What is an ADU?

First, a quick summary of what an ADU is. An accessory dwelling unit (ADU) is an independent residential unit located on the same property as a single-family home. You may have also heard them referred to as “granny flats,” “mother-in-law suites,” or “garden cottages.” 

In order to be considered and ADU, the dwelling must contain a bedroom or living space, its own kitchen (with large appliances), and a bathroom. It also must have its own separate and lockable entrance door. 

a graphic showcasing the different types of ADUs: interior attached (basement or attic), attached ADU (addition), and detached ADU.

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Do ADUs Add Value to a Home?

The short version: yes. An ADU adds additional living space, which increases the value of that home.

How Much an ADU Increases the Value of Your Home

As of 2021, data showed that a home with an ADU is priced 35% higher on average than a home without one. (source) 

With rising interest in ADUs and the need for more livable space only continuing to increase as the population does, it’s a fair assumption that this trend will continue. Adding an ADU provides functionality now, and a likely increase in value when you look to sell.

How Much Does an ADU Cost?

When discussing the value of an ADU, you also need to consider the costs required. Which unfortunately, can be difficult to do as there’s a wide range. The cost of an ADU will depend on your city, the size of the ADU, if it’s attached or detached and a number of other factors that inevitably crop up during the building process. This means that ADUs can range from as low as $20,000 to as high as $500,000, depending on the scope. 

Another factor to consider is how you will use the ADU. You may recoup costs required to build by charging rent. Or, if you intend to use it for family members, you may also see less money spent building an ADU than spent paying for a residential care facility.

The best way to get an estimated cost for a potential ADU project is to request a project estimate from an experienced contractor.

Accessory Dwelling Unit Builders in Minnesota

Considering adding an ADU to your property? There are a lot of factors in play: zoning requirements, building codes, form and function, budget, and timeline. Our expert home remodelers at Titus Contracting are your advocates throughout the entire design and remodeling process. We take pride in our work from start to finish, and at the end of the project, you’ll have your perfect ADU.

Call for a design consultation today at 952-746-7817 or contact us online for a project estimate.

Download Now: Discover ADUsADU eBook Cover Mockup 3D

Your Guide to Unlocking Your Home’s Potential

Love your home, but need more livable space? Accessory dwelling units (ADUs) may be your answer. These additions combine the best elements of apartment and tiny home living, to create independent spaces on your property.

Accessory dwelling units are perfect for:

  • Grandparents/parents who need their own space
  • College-age and young adult children living at home
  • Adding a fully rentable unit to your property, for extra revenue

Discover the power of ADUs with our free guide.

Get the Guide

Titus Contracting is a full-service remodeling company offering commercial and residential construction. We have an office in Burnsville, Minnesota and work throughout the Twin Cities.