Accessory Dwelling Units (ADUs) present a unique opportunity for homeowners to increase their property value and income potential while creating flexibility for family, loved ones, or caregivers. However, realizing this potential is not as simple as it appears. The investment in an ADU has various hidden costs that can significantly impact the feasibility and profitability of the project.

ADUs come in two common forms: attached or detached, each with its own set of considerations. Attached ADUs are typically built as an addition or carve-out of a primary residence. They share one or more walls but maintain separate entrances. Detached ADUs, as the name suggests, are independent structures built on the property. They neither share walls nor reduce the usable existing space of the primary home. When designed properly, they can increase the living space and value of the property without diminishing privacy or quality of life.