Does an ADU increase property value? Complete Real Estate Guide on ADUs

does an adu increase property value

Have you been dreaming of a man cave, but you just don’t have space? Are your parents getting older and need a place to stay? An ADU could be your next best investment.

An ADU also makes sense financially. By adding a rental income and increasing your home’s value, you won’t regret installing an ADU.

Does an ADU increase property value? Are there some types that are worth more than others? Read here to get these answers and more.

What Is an ADU?

ADU is an acronym for Accessory Dwelling Unit. In the past decade, ADU’s popularity has steadily increased.

The reason for the steady increase is that these additions add to home value without breaking the bank. These additions can either attach to the existing home or remain detached. But the most common ADUs are built above garages.

What’s the Point of Adding an ADU?

ADUs have many potential uses. One essential benefit ADUs provide the potential for a secondary rental income. This rental income can help pay your mortgage and allow you to spend your extra cash elsewhere.

Another obvious benefit is the extra space ADUs provide. Don’t about where everyone is going to sleep when your family comes to town for the holidays. Build an ADU and create some space for each other instead.

ADUs can be prefab homes, but they are not lean-to’s. Designing and installing your ADU calls for careful planning and execution, obtaining permits, and putting forth an investment. provides valuable insight into ADU construction, financing, and zoning for each state.

You can also have your ADU custom designed. Whether you choose a prefab ADU or custom-designed ADU factors into how much an ADU increases your property value.

ADUs provide a happy medium for someone who neither wants to live in the city or a tiny house in the country. It’s also great for people who would like a guest house, but don’t want to spend a ton on contractors.

Different Types of ADUs

There are three main types of ADUs: detached structures, attached external structures, and attached internal structures.

Detached structures are not connected to the main home and are located in the side or back yard. Detached ADUs act as carriage houses or tiny houses that provide affordable extra living space.

The main benefit of detached ADUs is that whoever lives there has autonomy and privacy. ADU occupants don’t have to enter the main house to get to their dwellings awkwardly.

But the primary concern with detached ADUs is the portable building maintenance costs. Because the unit is detached, it needs wiring, plumbing, and ventilation.

Attached external apartments are apart of the main structure, and share at least one wall with the house. These types of ADUs have their entrances and appliance hookups.

But the cost of connecting these utilities is more manageable than detached units because of their proximity to the main house. Depending on the main houses’ mechanical appliance capacity, attached exterior ADUs might be able to share some appliances.

Attached internal ADUs are apart of the structural integrity of the main house. The two units are virtually indistinguishable from one another upon the first impression. These ADUs are most likely constructed in basements or attics, and they often share utilities with the central unit.

Does an ADU Increase Property Value?

Though ADUs can prove costly, you should not view them as a short-term investment. ADUs are financially lucrative over the long-term. They can add value to your home either by providing a rental income or by merely increasing your home’s appraisal.

Get Yours Today!

Whether you want an extra rental income, you want a guest house, or you want to provide a home for your elderly parents, an ADU can offer a viable option for your needs.

The answer to, “does an ADU increase property value,” is yes. You just have to start planning today.

But adding an ADU isn’t the only way to increase your property value. Read more informative Winnipeg Real Estate blogs to find out how to maximize your real estate investments.


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