Why Build an ADU? The Top Reasons Homeowners Are Adding Accessory Dwelling Units
San Diego Renovators • May 12, 2025
Accessory Dwelling Units (ADUs)—also known as granny flats, in-law suites, or backyard cottages—are becoming increasingly popular across California and especially in cities like San Diego. Whether attached to your main home or built as a detached unit, ADUs offer a flexible and financially smart way to maximize your property’s value and functionality.
1. Earn Passive Rental Income
One of the biggest motivators for building an ADU is the potential to generate monthly rental income. With housing demand high and rental prices rising, homeowners can lease out their ADU for long-term tenants or short-term rentals, helping offset mortgage payments or fund other investments.
2. Provide Housing for Family
An ADU can serve as the perfect solution for multi-generational living. Whether it’s elderly parents, young adult children, or extended family, an ADU offers them a private, independent living space while keeping them close.
3. Increase Your Property Value
Adding an ADU is one of the most effective ways to boost your home’s resale value. With the added livable square footage and income potential, properties with ADUs typically appraise higher and are more attractive to future buyers.
4. Take Advantage of Recent California Legislation
California has passed several laws in recent years making it easier and faster to get permits and approvals for ADUs. Cities like San Diego are actively encouraging ADU development as a way to combat the housing crisis, often waiving fees and streamlining approvals.
5. Create a Home Office or Flexible Living Space
Not every ADU needs to be rented out. Many homeowners build ADUs to serve as private home offices, studios, guest suites, or retreat spaces. It’s a great way to add livable space without the hassle of a full home addition.
6. Aging in Place
As homeowners get older, some choose to live in the ADU themselves while renting out the main house. This allows them to downsize, reduce living costs, and maintain their independence—all while staying on their property and earning income.
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Final Thoughts
Building an ADU is not just a trend—it’s a smart investment in your property and your future. Whether you’re looking to increase rental income, house family members, or simply make better use of your land, an ADU offers incredible flexibility and long-term benefits.
If you’re considering building an ADU in San Diego, our team at San Diego Renovators can guide you through the design, permitting, and construction process from start to finish. Contact us today to schedule a free consultation.
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