What is an ADU and Is It Right for You? The Complete Guide for Los Angeles Homeowners

Introduction: ADUs Are Reshaping LA Living

Accessory Dwelling Units (ADUs) have become one of the most talked-about housing trends in Los Angeles—and for good reason. With soaring home prices, limited space, and a growing need for flexible living arrangements, ADUs offer a smart, legal, and potentially lucrative solution for homeowners across the city.

Whether you’re in Highland Park, Venice, or Reseda, an ADU can help you create more space, generate rental income, or provide a home for extended family—without having to move or buy another property. But is building one right for you?

This guide explores everything you need to know about ADUs in LA, from definitions and design to zoning laws and ROI.

What Exactly is an ADU?

An ADU is a self-contained residential unit located on the same lot as a primary home. It includes a kitchen, bathroom, sleeping area, and its own entrance.

Types of ADUs:

  • Detached ADU: A separate structure, often in the backyard
  • Attached ADU: Built as an extension to the main home
  • Garage Conversion ADU: Transforms an existing garage into a living unit
  • Junior ADU (JADU): A smaller, limited-size unit built within the primary residence

ADUs go by many names: granny flats, in-law suites, backyard homes. But in LA—they all follow specific guidelines under California and city law.

Why Are ADUs So Popular in Los Angeles?

Los Angeles has embraced ADUs as a housing solution due to:

  • The city’s housing shortage
  • Multi-generational living needs
  • High cost of buying or renting a second property
  • Recent legal changes that make building ADUs easier than ever

They allow homeowners to increase usable square footage without changing neighborhoods—or paying for a second mortgage.

Benefits of Building an ADU

  • Rental Income: Earn $1,500–$3,000/month depending on location and size
  • Home Value Boost: Adds significant equity—some estimates suggest 20–30% increase
  • Flexible Use: Home office, guest suite, artist studio, teen retreat, Airbnb
  • Housing for Family: Aging parents, adult children, or live-in caregivers
  • Privacy & Independence: Separate entrance and amenities for both dwellers

Zoning and Legal Considerations in LA

California state law allows ADUs by-right in most single-family and multifamily zones. However, local rules still apply.

Key LA regulations:

  • Minimum lot size: No longer a requirement (as of 2020)
  • Setbacks: 4 feet from side and rear property lines
  • Maximum size: Up to 1,200 sq ft for detached ADUs
  • Parking: No extra parking required if near transit or converting a garage
  • Permit process: Involves plan checks, inspections, and possible neighborhood notification

Working with an experienced LA-based designer or contractor is essential to navigate the process.

Cost to Build an ADU in Los Angeles

ADU TypeEstimated Cost
Garage Conversion$90,000 – $135,000
Detached New Build$150,000 – $300,000+
Attached ADU$120,000 – $250,000
JADU (Interior)$40,000 – $85,000

Factors that influence cost:

  • Site conditions (sloped land, utilities)
  • Design complexity
  • Permit fees and plan check delays
  • Material choices and finishes

How Long Does It Take to Build an ADU?

The average ADU timeline in LA is 6 to 12 months, depending on size and permit approvals.

Timeline breakdown:

  • Planning and design: 1–2 months
  • Permitting: 2–3 months (sometimes longer)
  • Construction: 4–7 months

Hiring a design-build firm can help streamline the process.

Will an ADU Work on Your Property?

A quick checklist:

  • Do you have backyard space or a garage?
  • Are your utility connections accessible?
  • Is your home in a single-family or multi-family zone?
  • Do you need the unit for family, rental, or future resale?

If you answered yes to 2+ of these, an ADU is worth exploring further.

Financing Your ADU Project

Options available to LA homeowners:

  • Home equity loan or HELOC
  • Construction loan
  • Cash-out refinance
  • ADU-specific lending programs (some state-sponsored)
  • Partnering with companies offering “build now, pay later” plans

Always factor in monthly payments and timeline.

FAQs: What LA Homeowners Ask About ADUs

Can I build more than one ADU?
Yes—state law allows one ADU + one JADU on single-family lots.

Do I have to live on the property?
As of 2025, LA no longer requires owner-occupancy for ADUs.

Can I Airbnb my ADU?
Short-term rental laws apply. Generally, you can’t Airbnb an ADU unless it’s your primary residence.

Will an ADU increase my property taxes?
Yes—but only on the added value of the ADU, not the main home.

Do I need to notify neighbors?
Not usually. Most ADUs are allowed by-right without neighbor approval.

Conclusion: Is an ADU Right for You?

If you’re looking for more space, flexibility, or income without buying another home, the answer might be yes. ADUs offer a future-proof investment that aligns with LA’s evolving housing landscape.

Still not sure? We offer free feasibility assessments for properties across Los Angeles.

Contact us today to schedule your ADU site consultation.