How Building an ADU Increases Your Property Value

If you’re considering ways to increase the value of your home, building an Accessory Dwelling Unit (ADU) might be the smartest move you can make. ADUs aren’t just extra living spaces—they’re value-boosting assets that attract buyers, generate income, and enhance your property’s appeal.

1. Higher Property Appraisal

An ADU adds square footage, functionality, and rental potential to your property, all of which contribute to a higher market appraisal. Depending on the size and quality of the unit, an ADU can increase your home’s value by 20-30%.

2. Appeals to More Buyers

Homes with ADUs are in high demand. Buyers are attracted to properties that offer extra living spaces for family members or potential rental income, giving your home a competitive edge in the market.

3. Rental Income as a Selling Point

An existing ADU allows buyers to immediately generate rental income after purchase. This is highly appealing to investors and buyers looking for ways to offset mortgage costs.

4. Boosts ROI Over Time

While building an ADU requires an upfront investment, the long-term return is significant. Between increased property value and passive income, an ADU pays for itself and continues to generate value year after year.

Conclusion:

An ADU isn’t just a home improvement—it’s a wealth-building strategy. If you’re looking to enhance your property’s value and market appeal, investing in an ADU is a decision that delivers lasting benefits.