Adding an ADU can be a smart choice for Sacramento homeowners to boost property value, create rental income, or provide extra room for family. Based on insights from local ADU builders, this article covers everything that goes into the cost of building an ADU in Sacramento, from construction expenses to permits and design choices.
Average Cost of Building an ADU in Sacramento, CA
The cost to build an ADU in California can vary widely depending on the region, but in Sacramento, for a simple, smaller ADU, you might be looking at around $100,000 to $150,000. Mid-range ADUs generally cost between $200,000 and $300,000. For high-end, custom ADUs, you’re looking at $300,000 or more.
Planning and Permits
- Architectural Plans and Design: Around $6,000 for a basic design; $14,000+ for custom designs.
- Land Survey: Typically costs $500 to $1,500 to mark boundaries and avoid potential dispute with neighbors.
- Building Permits: Cost ranges from $3,000 to $11,000 in Sacramento, covering plan reviews and inspections.
- Impact Fees: Additional fees for ADUs over 750 sq. ft. can be from $1,500 to $5,000.
Site Preparation and Foundation
- Site Prep: Leveling or clearing the plot costs $2,000 to $10,000.
- Foundation: A simple concrete slab foundation typically runs $5,000 to $15,000.
Structural Build
- Framing: Walls, roofing, and basic structure cost $20,000 to $40,000 for a small ADU; larger units may cost $50,000+.
- Exterior Finish: Siding and other exterior finishes add $10,000 to $20,000.
Utilities and Systems
- Plumbing: Installing water lines and connecting to the sewer costs $5,000 to $15,000, especially if trenching is needed.
- Electrical: Wiring, outlets, and lighting cost $3,000 to $8,000; a separate electrical panel adds more.
- HVAC: Ductless mini-split systems, a popular choice for ADUs, range from $3,000 to $7,000.
Interior Finishes
- Drywall and Insulation: Budget $5,000 to $10,000, depending on size and insulation needs.
- Flooring: Vinyl or laminate costs $2,000 to $6,000; hardwood costs more.
- Cabinetry and Countertops: Basic cabinets and counters are $5,000 to $10,000; custom options add more.
Appliances and Fixtures
- Appliances: A standard set of stove, refrigerator, and microwave costs $2,000 to $5,000.
- Bathroom and Kitchen Fixtures: Sinks, faucets, etc., add another $1,000 to $3,000.
Utility Connections
- Water and Sewer: Extending lines from the main house costs $5,000 to $10,000.
- Electricity: Connecting to the main house generally falls between $2,000 and $5,000.
Final Touches
- Landscaping: Adds $1,000 to $5,000, depending on area size and materials.
- Driveway or Walkway: Simple options cost $1,000 to $3,000.
To get an accurate estimate of ADU construction costs for your specific project, it is best to contact a reliable general contractor with proven local experience.
Why ADU Cost Per Square Foot Varies
- Materials and Finishes: Basic materials keep costs around $200 per sq. ft., while high-end materials, like hardwood flooring, push costs closer to $400 to $500 per sq. ft.
- Type of ADU: Garage Conversions range from $150 to $250 per sq. ft., and a detached ADU costs $300 to $500 per sq. ft., due to the need for a new foundation and exterior walls.
- Location-Specific Costs: in the San Francisco Bay Area, Los Angeles County, and Orange County, the price per square foot can be 10-20% higher than in lower-cost regions like Central Valley or Inland Empire.
Example:
If you’re building a 600-square-foot detached ADU with mid-range finishes in Sacramento, expect to pay around $250 to $350 per square foot. This means a total cost of $150,000 to $210,000.
How Much Value Does an ADU Add?
Property Value Boost: An ADU can add 20-30% of its construction cost to your property’s overall value. For example, if you spend $150,000 on building an ADU, it might add around $30,000 to $45,000 in value. This boost can vary based on factors like location, ADU quality, and local demand.
Rental Income Potential: In Sacramento, ADUs can rent for $1,000 to $2,000 per month, depending on size and amenities. This extra income can offset the cost of construction.
Market Appeal: ADUs are highly desirable in California, where housing shortages make additional living spaces a valuable asset. Potential buyers often see an ADU as a major plus, whether for rental income, a guest suite, or family use.
Grant Programs for ADU Construction
1. CalHFA ADU Grant Program
The California Housing Finance Agency offers grants up to $40,000 to reimburse pre-development and non-recurring closing costs associated with ADU construction.
As of December 28, 2023, the latest round of funding has been fully allocated. Homeowners should monitor CalHFA's website for updates on future funding rounds.
2. Sacramento County's Shelf Ready ADU Program
Sacramento County provides a selection of pre-approved detached ADU plans free of charge to residents in unincorporated areas. These plans are currently available through the county's official website.
3. City of Sacramento's ADU Resource Center
The City of Sacramento offers an online resource center providing information and tools to assist homeowners in planning, building, and operating an ADU. While not a direct financial grant, it offers valuable resources to help reduce costs.
FAQ
Does an ADU Increase Property Tax?
In California, the existing structure’s tax base remains the same, but the ADU’s value adds to the overall assessment. The exact amount of your property tax increase depends on the cost of the ADU. As the property tax rates are generally around 1% of assessed value, for a $150,000 ADU, you could expect an additional $1,500 per year in property taxes.
Can I use a home equity loan to finance an ADU?
Many homeowners in California use home equity loans or lines of credit to finance ADU construction. These loans are popular because they often have lower interest rates than personal loans, and they allow you to tap into the equity you’ve already built in your home.
What is the maintenance cost for an ADU?
Maintenance costs generally run about 1-2% of the ADU’s value per year. For a $150,000 ADU, expect around $1,500 to $3,000 annually for repairs, upkeep, and general maintenance.