Study: ADUs Can Add 35% to Property’s Value

 

If you would like Lucrum to have a preliminary ADU study completed on your multifamily investment property to help you determine if you can add additional units, income & value to your apartment building, just contact us and we will get it done for you!

 

This article is sourced from National Association of Realtors

 

Accessory dwelling units, also known as granny flats, in-law suites, or garage apartments, have been on the rise since the pandemic. ADUs are growing at a rate of 9% or 100,000 per year, according to a new analysis by Porch.com, a home improvement site.

 

Properties that have one are sought after. In the largest cities, a home with an ADU is priced 35% higher, on average, than a home without one, according to Porch.com.

ADUs have been touted as one answer to the housing affordability and inventory crisis. Homeowners with ADUs can earn extra income by turning them into rentals or as places to house their aging family members nearby.

 

ADUs are not cheap to build, however. The average cost of an ADU is $180,000, typically about $260 per square foot. That number could stretch much higher depending on where you live. For example, an ADU could cost anywhere between $149,000 and $400,000 in the San Francisco Bay Area, and in Austin, Texas, an ADU can cost $300,000, the study shows.

 

There are about 1.4 million homes with an ADU in the U.S. as of 2019. The states with the highest concentration of sales listings with ADUs are California, Florida, Texas, and Georgia.

 

By: National Association Of Realtors
November 4, 2021

Similar Posts

Seller Carry: WeHo Multifamily Sale

Case Studies

Challenge Our client decided that he wanted to retire in Nevada, sell … Continue reading Seller Carry: WeHo Multifamily Sale

Read more

Private Disposition: Beverly Hills Multifamily Sale

Case Studies

Challenge The subject property, a unique 32 unit apartment complex built in … Continue reading Private Disposition: Beverly Hills Multifamily Sale

Read more

Rapid Offer & Legacy Partner: Palms Multifamily Sale

Case Studies

Challenge A former politician and owner of a 20 unit non-rent controlled … Continue reading Rapid Offer & Legacy Partner: Palms Multifamily Sale

Read more

Gain valuable insight

You need to be informed about changes in legislation, economic developments and current events to protect your interests and assets.

SUBSCRIBE NOW