Think your ADU project is out of reach? We have good news.
Often, a homeowner who is adding an ADU will also want to do more. They may want a storage building. Or a kitchen remodel. Or a second ADU. Or all of the above.
Wanting more makes sense. After all, your home is where you spend your life. It’s important to get it right.
That's what one family was thinking when they came to New Avenue with their wish list. They knew exactly what they wanted for their home: A 650-square-foot ADU, a 250-square-foot storage building, and a kitchen remodel.
These are all smart upgrades to a home. But when they looked at the ballpark figures, they worried they might not get everything they wanted.
Here are some typical costs for an ADU, a new storage building, and a kitchen remodel:
650-square-foot ADU: approximately $420,000
250-square-foot storage building: approximately $48,000
Kitchen remodel: starting at $90,000
This family’s concern was that they could only budget $360,000 for the entire project. But we see that as more of a challenge than a problem. Since we are absolutely fanatical about making lives better, we came up with a few ideas:
Approach #1: Do the ADU first, and let it pay for the whole project.
This one’s our favorite because it’s basically a have-your-cake-and-eat-it-too situation. If you’re planning to rent out your ADU, you have a big advantage in paying off your project. Your rental income can pay for the ADU, freeing up funds to tackle the rest of your wish list sooner. Then, once your project is paid off, you can continue renting the ADU for more income or enjoy it for personal use.
Approach #2: Combine wish-list items.
This is where you can get creative. The family that wanted a storage building and an ADU could build an ADU with storage attached. Or they could build the ADU and use part of it (a loft, for example) for storage until they were ready to build the full storage building.
Approach #3: Reduce sizes for a lower-cost option.
A 250-square-foot ADU is still awesome; it’s just awesome on a smaller scale. Even smaller accessory dwellings are in high demand among renters, and they’re incredibly useful. In the same vein, a large storage shed can be just as effective as a full storage building, and it can last just as long. This would be a great approach for a homeowner who doesn’t want to rent out their ADU.
Our advice for any budget
If you have a lot of work that you want done, the first step is to get a design proposal. You can look at actual project costs and get a ballpark figure, but you won’t know exactly what your project will cost until you meet with a designer and get a full design proposal.
That full design proposal will allow you to better plan your project. Once you have precise costs, you can decide whether to go ahead with the whole thing or modify your plan. Your designer will help you explore your options. That’s a natural part of the design process.
