07/24/2026
Where does the money go when building an ADU?
Before your ADU ever generates rental income, there are several important stages that make up the total project investment. Understanding where your budget goes can help you plan smarter and avoid surprises along the way.
Here is a rough breakdown of a typical detached ADU construction budget:
đď¸ Site Work & Foundation | 24%
Preparing the site and creating a strong foundation are some of the first major investments in an ADU project. This stage includes preparing the area, excavation, grading, and the foundation needed to support the new structure.
đ Framing & Shell | 22%
The structure begins to take shape during this phase. Framing, roofing, exterior walls, windows, and other elements that create the building envelope are part of bringing the design to life.
⥠Plumbing, Electrical & HVAC | 20%
The systems that make your ADU comfortable and functional are a major part of the budget. This includes water lines, electrical systems, heating, cooling, and ventilation.
đ¨ Interior Finishes | 22%
The details that turn a structure into a home happen here. Flooring, cabinets, countertops, fixtures, paint, and other finishing touches create the final living space.
đ Permits, Fees & Design | 12%
Before construction begins, planning and approvals are essential. Design work, engineering, permits, and required fees help ensure the project meets local requirements and moves forward properly.
Every ADU project is different. Costs can vary depending on your property, design choices, site conditions, and local requirements. Understanding the process and planning ahead are key steps toward a successful build.
Thinking about adding an ADU to your property? Start by understanding what's possible.
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