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Home Unlocking Potential: The Rise of ADU Construction in Los Angeles

Unlocking Potential: The Rise of ADU Construction in Los Angeles

Accessory dwelling units, or ADUs, are living spaces that share the building with a larger residential area. These units are not available for sale individually, but homeowners are allowed to lease these units out to generate additional income. That said, it is essential to know the rise of this construction type to unlock these units’ full potential. In this article, you can understand the rise of ADU constructions in Los Angeles and how it has financially contributed to LA residents.

Housing Challenges in Los Angeles

As of 2023, there are approximately fifty thousand homeless people in the city of Los Angeles, with the cost of houses at an all-time high with a median price of one million U.S. dollars. Affordability concerns rose and heavily impacted the local community. Due to this issue, there has been an increase in ADU construction within the city.

Changing Regulations and Policy Support

With the increase of accessory dwelling units across the city, Los Angeles had to adjust its regulations and policy support to address the increasing housing issue. These additional residential spaces require the same zoning,  building, and residential codes as other residential areas. Moreover, these units must comply with the following regulations:

  • Permanent living space
  • Permanent sleeping space
  • Permanent cooking & eating areas
  • Permanent sanitation space

ADU Design Innovation in Los Angeles

With the rapidly increasing rent costs in the city, Los Angeles’ local government had to address the issue of the rising number of people living outside. This issue resulted in the legalization of accessory dwelling units and curating innovative designs that numerous lower-income locals could financially keep up with.

There are numerous ways homeowners can integrate these home extensions. These could be in the manner of garage conversions, home conversions, home additions, junior ADU, new detached units, and garage additions.

Garage Conversion

This type of conversion is when homeowners choose their ADU construction to convert their garage into an additional living space complete with its own living space, kitchen, dining room, sleeping room, and bathroom.

Home Conversion

ADU constructions in Los Angeles also adapted the home conversions where there is a designated area in the primary space that residential owners convert into their  own space. 

Home Addition

As the name suggests, this accessory dwelling unit adds to the existing residential space and shares at least one wall with the main home. Homeowners construct an additional living space complete with all the basic amenities needed in a home.

Junior Accessory Dwelling Unit (JADU)

These ADUs are built with less than five hundred square feet attached to an existing single-family dwelling or accessory structure.

New Detached Accessory Dwelling Unit

This ADU is a brand-new independent building not attached to the primary dwelling or garage. These units are usually constructed in backyard spaces.

Garage Addition

Similar to the home addition, this ADU shares at least one wall with the garage. In addition, these units can also be built on top of the primary homeowner’s garage. 

The Creative Use of Limited Space in Los Angeles

Architects for ADU constructions in Los Angeles unleashed their creative juices in curating functional and elegant additional living spaces in LA homes. The city has now pre-approved several ADU designs and layouts from builders, which has streamlined the process.

The Economic Impact of ADUs in LA

Accessory dwelling units not only address the housing issue in the city but also present economic gain for locals who have the monetary capabilities to construct these units. Primary homeowners can have passive income through renting out these additional units. 

Aside from having passive income, these added residential spaces significantly impact the existing property’s value and resale potential. These units can add up to approximately ten to twenty-five percent of a property’s overall value. Moreover, individuals who are looking to purchase homes in the city also consider residential units with ADUs due to the benefit of passive income.

Challenges Concerning ADUs

Since ADUs are relatively new to the housing industry, individuals who incorporate ADUs into their primary homes encounter several challenges. These hurdles include approval process and permitting fees, design limitations, and acquiring financing and construction costs.

In incorporating an accessory dwelling unit into your home, you must collaborate with industry experts who are knowledgeable about how to streamline the process and can deliver your desired home addition. There are numerous ADU construction companies across the city, and it is vital to partner with seasoned professionals to deliver the best results.

Future Trends and Opportunities in Accessory Dwelling Units

The creation of ADUs significantly addressed Los Angeles’ housing issue, from lacking homes for families to living to creating living spaces that individuals or families can afford. Notable trends in the ADU industry include integrating smart technology, sustainable designs, and real estate investment strategies.

Aside from the financial opportunities for primary residential owners, ADUs allow multiple generations of the same family into one significant space while not compromising each generation’s privacy. These residential additions allow families with older relatives to spend more time with each other due to the proximity.


ADU constructions in Los Angeles present numerous benefits for homeowners and individuals or families looking for living spaces at affordable prices. However, there are still bumps in the road regarding the topic. Many people, including the local government, are looking for solutions to the city’s housing problems, including the construction of ADUs. Partner with a reputable company for your accessory dwelling unit and get a free quote with Progressive Builders.


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Progressive Builders was created by a motivated team with years of experience in the bath and kitchen remodeling field. If you own a home or business in the Los Angeles area and are dreaming of adding a personal touch with custom design and specifications, then contact our team of experienced home remodeling professionals. We are excited to explore every possibility with you! Call (888) 373 9930 submit our online form to start a conversation.