Be Neighbor Pattern

Be my Neighbor Appendix A

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