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How to Choose Between a Room Addition and an ADU for Your Los Angeles, California Home

How to Choose Between a Room Addition and an ADU for Your Los Angeles, California Home
It’s probably safe to say that everyone could use more space. We all know that’s hard to come by in Los Angeles, California, however, you do have a few choices depending on your wishes and needs. The two main options for expanding your home are ADUs and room additions. This article breaks down the differences and helps you figure out which one is right for you. 

Building and Maintenance Costs

Of course, you’re looking at a fairly substantial difference in costs between room additions and ADUs. On average, a room addition can cost anywhere from $80,000 — $200,000, while an ADU can range from $200,000 — $400,000.  Room additions can save you money on permitting costs because the rules and regulations are typically far less extensive. ADUs, however, are subject to more building codes and are more expensive to build since they are essentially self-contained, tiny homes.  It also tracks that ADUs cost more to maintain than room additions. From routine maintenance to major repairs, ADUs can rack up much larger bills that could eat into their overall ROI as compared to a lower maintenance room addition.

Size and Purpose Considerations

Room additions are great when you only need space for a specific purpose, such as an extra bedroom to accommodate a new baby or a home office for a remote worker. Because room additions are much less complex, you can really tailor them to your needs.  On the other hand, ADUs offer slightly less flexibility due to their size. You’re building a detached unit that, by law, must have its own facilities, including a full kitchen and bathroom. While there are currently no minimum lot size restrictions in Los Angeles for ADUs, you must have sufficient setbacks of 4 feet at the sides and rear of the building. Even so, ADUs provide more space than room additions to comfortably accommodate long-term guests or even full-time residents such as parents or adult children. 

Rental Income and Future Resale Value

Both ADUs and room additions can meet your current needs and give you an advantage in the future if you ever choose to sell your home. The exact figures vary based on a variety of factors, but generally, home addition can fetch a 40% – 70% return on investment, while ADUs can increase your property’s value by 20% – 35%.  In addition to both options having resale value, room additions and ADUs can generate additional income. You can rent out the spare room in your house or you can rent out your entire ADU for rental income. In the highly sought-after Los Angeles, you may have success listing your ADU on popular short-term rental sites like AirBnB and Vrbo.  

Room Addition Or ADU: The Choice Is Up To You

Adding a room to your existing home or building a separate ADU are both great ways to get more out of your home – and your life. At Creative Innovation Developers, we can do both to give you maximum flexibility as you determine the best way to maximize your home. Contact us today to get started. 

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