Be Neighbor Pattern

Be my Neighbor Appendices

Financing ADUs and Legislation Across the Country

Evaluating long term benefits and potential financing options is key to successful ADU construction. Likewise, evaluating legislation across the country provides a policy roadmap for municipalities.

Financing

Average Costs of ADU Construction

Size (sq ft)TypeTotalCost per sq ft
676Detached new construction$180,833$305
676Basement ADU$185,833$265
556Attached ADU$154,400$300
504Garage Conversion$142,000$297
978Detached new construction above a garage$217,717$212

Source: Backdoor Revolution: The Definitive Guide to ADU Development. Table does not include design and permitting costs

ADU Cost: $250,000

Resulting monthly costs

30 year mortgage at 4% interest$1,194
Property taxes at 1% of added value$208
Additional insurance$50
Maintenance and upkeep$50
Total monthly cost$1,502

ADU Cost: $150,000

Resulting monthly costs

30 year mortgage at 4% interest$716
Property taxes at 1% of added value$125
Additional insurance$50
Maintenance and upkeep$50
Total monthly cost$941

Legislation Across the Country