You can save on an ADU in Los Angeles by using the city’s pre-approved plans, keeping the design simple and rectangular, choosing a garage conversion over new construction, stacking utilities near existing lines, and getting multiple bids. These moves can cut tens of thousands off a build. Here are five ADU cost-saving tips for LA homeowners.
There’s been a lot of talk in Los Angeles about ADUs (ADU meaning) and garage conversions now that the laws have changed. These are becoming very popular construction projects for homeowners to consider. But let’s face it…they aren’t cheap to build. Building an ADU is really no different than building a full-fledged home, just in a smaller size. It still needs all the same components of your current home…floors, walls, kitchen, bathrooms, lighting, HVAC, etc. So, the costs can add up. Fortunately, there are several ways you can reduce your ADU costs, if you’re planning to build on a budget.
Here at GreatBuildz, a free service that connects homeowners in Los Angeles, Orange County, Ventura & San Diego with reliable general contractors, we get inquiries every day about garage conversion and ADU costs of construction – here are some tips to save money on your project.
Related Blogs
Building an ADU: A Step-by-Step Guide
ADU vs JADU: Which is Right for You?
What Are The Most Popular Types of ADUs for Homeowners?
New ADU Laws in California for 2025 – Here’s What You Need To Know
Questions about your ADU? Call 818.317.3567
Learn More About ADUs – Schedule a Free Call
Many people agree that building an ADU can be a great investment for a variety of different uses. And although the ADU costs of construction can be steep, you still have the advantage of already owning the property and being close to utilities. In the case of a garage conversion, you even already have the existing structure, thereby, significantly reducing the costs of building from scratch.
Five Tips To Reduce Your ADU Cost In Los Angeles
Regardless of whether you’re doing a new ADU or garage conversion, there are ways to keep your budget down; let’s discuss five great cost-saving options:
1. Don’t use any tile.
Tile is expensive because it’s labor-intensive to install. So, regardless of the cost of the tile material itself, this isn’t a cheap product to use. There are only a few places that you would normally consider tile, and you can substitute other materials in these places.
On the kitchen backsplash, you can just use a standard 6” backsplash that matches the countertop material. In the shower/bath, instead of tile, use a nice fiberglass surround (there are now some nice ones that replicate the look of tile).
Finally, instead of doing tile flooring in the bathroom, I suggest using waterproof vinyl plank flooring throughout the ADU, including the bathroom floor. The products available now look great and you’ll have one consistent flooring surface throughout the unit.
Get Your ADU Questions Answered – Call 818.317.3567
Learn More About ADUs – Schedule a Free Call
2. Make your ADU all-electric.
Simply put, you’ll save the ADU costs of running a gas line to and through your unit. This means that you won’t have any gas appliances, so the following items would all need to be electric: kitchen range, water heater, clothes dryer, heating unit (HVAC). All of these are available in electric versions.
I suggest researching the pros and cons of gas versus electric appliances to ensure you are okay with going all-electric. Other advantages of being all-electric are 1) no gas bill and 2) if you decide to install solar panels, these can power all your appliances.
Keep in mind that going all-electric does have some implications for the electrical system and panel you will need for your ADU. Having so many electrical appliances could require you to upgrade the electrical panel needed for your ADU…so be sure to ask your contractor about this cost difference. An electric tankless water heater is an especially large draw on an electric system.
Pro-Tip: All detached structures in California now require solar panels, which makes an all-electric ADU even more compelling. Make sure you include solar panels in your ADU budget; assume approximately $10-15 for a full solar system install.
3. Design your layout with only one plumbing wall.
If you create your ADU design such that the kitchen and bathroom are adjacent, you’ll only need to run plumbing in one wall, saving you significant costs. Plumbing can be expensive to install since it includes supply lines (hot and cold), waste lines, and vent pipes.
The further apart your kitchens and baths are from one another, the more it costs to plumb the unit. In addition, if you’re building a two-story unit, make sure any second-story bathroom is located above either the kitchen or a first-floor bath, so they can ‘share’ the plumbing in the wall.
Pro-Tip: The plan/design created by your architect can significantly impact the cost of construction. If you’re looking to save costs…let your architect know up-front. That will guide their decisions about how to design your ADU. It tells them that you want a ‘simple’ plan, and not a design with ‘extra’ features like vaulted ceilings, rounded walls, skylights, etc. The most efficient and cost-effective ADU plan is a rectangle, not surprisingly. Have your potential contractor review the plans before they are submitted to the city for suggestions on reducing costs.
4. Find a good location to run the sewer line.
In Los Angeles, ADUs and garage conversions must run a new sewer line and tap into the existing pipe in the front yard; they cannot tie into the main house. Generally, that means running your sewer line from your ADU behind your home through a side-yard or driveway to connect it in the front yard.
If you have to run the sewer under an existing concrete driveway, the costs will be substantial. You’ll have to cut a slot in the concrete to open a trench for the pipe and then repair the concrete…this is not a small job. Alternatively, if you can find an area to run the sewer line that is just dirt, this will save you a lot of money.
5. Don’t install separate meters.
If you intend to use your ADU as a rental, you may want to split utility costs between the main home and the rear unit. However, planning an ADU with separate meters for electrical, water, gas will add up to thousands of dollars in extra ADU costs.
This being said, it would be nice to know how much of your utility cost can be attributable to each unit. Fortunately, this can be solved by installing sub-meters on the ADU utilities. Ask your contractor about the cost of incorporating sub-meters in your build.
However, if you want to keep your costs at a minimum, you can go without meters or sub-meters. You can always split out utilities by prorating the bills based on the size of each home, etc.
These are a few tips to get you started, but there are certainly many more ways to save on your garage conversion or ADU costs. One important way to conserve is to ensure your architect and contractor collaborate to ‘value-engineer’ the design of your ADU. By looking at a preliminary set of plans, a contractor can often visualize the most expensive elements and possibly suggest ways to revise the plan to create cost savings.
This tip didn’t make our top 5 because it wont be the right fit for everyone: If you’re planning to build an ADU with 2 bedrooms or less, you should strive to make it 750sf or less. Per state law, ADUs of 750sf or less are to be exempted from paying city impact and development fees such as water/sewer fees, school fees, park fees, etc. This could save you thousands or even tens of thousands of dollars.
One final tip to keep in mind is that saving costs by acting as your own general contractor is probably a mistake. Although you think this could save you money, it’s a terrible idea unless you are exceedingly handy or have a very wide network of trade subcontractors (plumber, framer, roofer, foundation, electrical, stucco, drywall, etc,). When you hire an ADU contractor (or general contractor), you are paying them to manage the job but also for their relationships with the crew, workers and subs who can do the job right. Its much, much harder for you to find good quality trades people. And if one of these trade contractors does a poor job, you’ll be paying twice just to correct their mistakes.
Frequently Asked Questions
How can I save money building an ADU?
Use pre-approved city plans to cut design and permit time, keep the design simple and rectangular to reduce framing costs, convert an existing garage instead of building new, place the kitchen and bathroom near existing utility lines, and get several bids. Each of these can meaningfully lower the total cost.
What is the cheapest type of ADU to build?
A garage conversion is usually the most affordable, typically $120,000 to $150,000, because the structure and foundation already exist. A junior ADU inside the existing home can cost even less. Detached new construction, at $150,000 to $400,000, is the most expensive.
Do pre-approved ADU plans save money?
Yes. Pre-approved or standard plans have already been reviewed for code, so they cut design fees and shorten the permit timeline, which saves both money and months. Los Angeles and many cities offer a set of pre-approved ADU plans to choose from.
When it comes to identifying the best ADU cost saving tips, you shouldn’t have to go it alone.
GreatBuildz is a free service that connects homeowners in Los Angeles, Orange County, Ventura & San Diego with reliable, thoroughly screened general contractors and provides project support from start to finish.
Call now (818.317.3567) to chat with a real person about your next renovation project or visit our website for more information: www.greatbuildz.com
