Complete Guide to Building an ADU in San Diego: Types, Costs, and Construction Process (2025/2026)

Thinking about building an Accessory Dwelling Unit (ADU) on your San Diego property? You’re not alone. Nearly 20% of all new housing units permitted in San Diego last year were…

Thinking about building an Accessory Dwelling Unit (ADU) on your San Diego property? You’re not alone. Nearly 20% of all new housing units permitted in San Diego last year were ADUs, reflecting a massive shift in how homeowners approach property development, rental income, and multigenerational living.

As one of the leading remodeling companies San Diego homeowners trust, Remade Home Construction has guided dozens of families through the ADU construction process. This comprehensive guide will walk you through everything you need to know about ADU types, costs, regulations, and the step-by-step construction process specific to San Diego County municipalities.


What is an ADU? Understanding Your Options

An Accessory Dwelling Unit (ADU)—also called a granny flat, in-law suite, or backyard cottage—is a self-contained residential unit located on the same property as a primary home. ADUs must include complete independent living facilities: kitchen, bathroom, sleeping area, and living space.

California’s progressive ADU laws have made building these units more accessible than ever, and San Diego has emerged as one of the most ADU-friendly regions in the state. Whether you’re a residential contractor San Diego professional or a homeowner researching options, understanding the different ADU types is your first step.


Types of ADUs: Which Option Fits Your Property?

1. Detached ADUs (New Construction)

Detached ADUs are standalone structures built separately from your main home, typically in the backyard.

Key Characteristics:

Best For: Homeowners with adequate yard space who want maximum privacy and rental income potential.

2025 Construction Costs: $300,000 – $450,000+ for turn-key construction ($375-$600 per square foot)

Pros:

Cons:

2. Attached ADUs

Attached ADUs connect physically to your primary residence, often as an addition to the side or rear of the home.

Key Characteristics:

Best For: Homeowners seeking cost savings through shared construction or those with limited yard space.

2025 Construction Costs: $250,000 – $380,000+ depending on size and finishes

Pros:

Cons:

3. Garage Conversion ADUs

Converting an existing garage into an ADU represents the fastest and most cost-effective path to creating rental income or additional living space.

Key Characteristics:

Best For: Homeowners with underutilized garages who want the quickest, most affordable ADU option.

2025 Construction Costs: $150,000 – $250,000 (significantly lower than new construction)

Pros:

Cons:

4. Junior ADUs (JADUs)

Junior ADUs are small units created entirely within the existing primary residence, limited to 500 square feet maximum.

Key Characteristics:

Best For: Homeowners wanting minimal construction impact and lowest costs while adding living space.

2025 Construction Costs: $60,000 – $120,000 depending on extent of interior modifications

Pros:

Cons:

5. Conversion ADUs (Non-Garage)

Beyond garages, homeowners can convert other existing permitted structures like pool houses, sheds, or workshops into ADUs.

Key Characteristics:

Best For: Properties with existing outbuildings that are underutilized.

2025 Construction Costs: $120,000 – $280,000 depending on existing structure condition


Garage ADU conversion with Rooftop Deck in Normal Heights.

How Many ADUs Can You Build? Understanding 2025 Regulations

The number of ADUs you can build depends on your lot type and jurisdiction:

Single-Family Residential Lots

State Law (applies everywhere):

City of San Diego Bonus: Using the Affordable ADU Bonus Program, you can build up to 5 total units:

Multifamily Residential Lots

As of January 2025 (SB1211):


ADU Construction Costs by Type: 2025 San Diego Pricing

Understanding the complete cost picture is essential for budgeting your ADU project. Here’s what san diego adu builders typically see for all-in costs:

Detached ADU (800-1,200 sq ft)

Total Turn-Key Cost: $300,000 – $450,000+

Per Square Foot: $375 – $600+

Attached ADU (600-1,000 sq ft)

Total Turn-Key Cost: $250,000 – $380,000

Per Square Foot: $350 – $550

Garage Conversion (400-600 sq ft)

Total Turn-Key Cost: $150,000 – $250,000

Per Square Foot: $300 – $500

Junior ADU (Up to 500 sq ft)

Total Turn-Key Cost: $60,000 – $120,000

Per Square Foot: $250 – $400

Important Cost Factors to Consider

California Construction Cost Index increased 44% from January 2021 to September 2025. An ADU that cost $300,000 in early 2021 now requires approximately $430,000 in 2025/2026.

Hidden Costs That Add Up:

Cost-Saving Opportunities:


Prefab 2-Story ADU in Vista, CA

The ADU Construction Process: Step-by-Step Timeline

Understanding the construction timeline helps you plan realistically. Here’s what to expect when working with san diego remodeling contractors:

Phase 1: Feasibility & Property Assessment (1-2 weeks)

What Happens:

Key Deliverable: Feasibility report confirming what can be built on your property

Cost: $1,500 – $3,500 (many contractors include this in design fee. At Remade Home Construction, we are currently offering FREE preliminary feasibility and property assessments! Contact us for more info and to schedule yours!)

Phase 2: Design & Architecture (4-8 weeks)

What Happens:

Key Deliverable: Complete construction document set ready for permit submittal

Cost: $8,000 – $18,000 depending on customization level

Pro Tip: Pre-approved plans can reduce this phase to 1-2 weeks and save $3,000-$8,000, though customization is limited.

Phase 3: Permitting & Approvals (2-6 months)

What Happens:

Key Deliverable: Issued building permit allowing construction to commence

Timeline by Municipality:

Cost: $6,500 – $21,000 in permit and plan check fees

Note: California law requires cities to approve or deny ADU permits within 60 days, but this timeline assumes complete and accurate initial submittal. Multiple revision rounds commonly extend the process.

Phase 4: Site Preparation & Foundation (2-4 weeks)

What Happens:

Key Milestone: Foundation inspection sign-off

Cost: Included in construction budget, but site-specific conditions can add $10,000 – $40,000

Phase 5: Framing & Rough Construction (6-10 weeks)

What Happens:

Key Milestone: Framing inspection and rough-in inspections

Pro Tip: Weather in San Diego is generally cooperative, but unexpected rain can cause 1-2 week delays during this phase.

Phase 6: Exterior Finishes & Roofing (3-5 weeks)

What Happens:

Key Milestone: Weather-tight structure allowing interior work

Phase 7: Interior Systems & Insulation (4-6 weeks)

What Happens:

Key Milestone: Rough interior inspections complete

Phase 8: Interior Finishes (4-6 weeks)

What Happens:

Key Deliverable: Substantially complete interior ready for final touches

Phase 9: Final Inspections & Closeout (1-2 weeks)

What Happens:

Key Deliverable: Certificate of Occupancy allowing legal occupancy

Total Construction Timeline: 4-8 months from permit to move-in for most projects

Complete Project Timeline (Design Through Completion): 10-18 months average


ADU Kitchen in San Diego, CA

Municipality-Specific Regulations & Lessons Learned

Each San Diego County jurisdiction has unique requirements. Here’s what we’ve learned building an ADU in San Diego across different municipalities:

City of San Diego

What Makes It Unique:

Permitting Timeline: 3-6 months average

Lessons Learned:

Key Contact: Development Services Department – (619) 446-5000

San Diego County (Unincorporated Areas)

Jurisdictions Covered: Bonita, Bonsall, Del Dios, Fairbanks Ranch, Fallbrook, Hidden Meadows, Lakeside, Mount Helix, Pala, Pauma Valley, Rancho Santa Fe, Rainbow, Spring Valley, Valley Center, 4S Ranch, and portions of many incorporated cities

What Makes It Unique:

Permitting Timeline: 4-6 months average

Lessons Learned:

Key Contact: Planning & Development Services – (858) 505-6445

Coastal Zone Cities (Special Considerations)

Cities Affected: Oceanside, Carlsbad, Encinitas, Solana Beach, Del Mar, La Jolla, Pacific Beach, Coronado, Imperial Beach

What Makes It Unique:

Additional Timeline: Add 4-8 weeks for Coastal Review

Lessons Learned:

Chula Vista

What Makes It Unique:

Permitting Timeline: 3-4 months average

Lessons Learned:

Oceanside

What Makes It Unique:

Permitting Timeline: 4-5 months (including coastal review)

Lessons Learned:

Escondido

What Makes It Unique:

Permitting Timeline: 3-5 months average

Lessons Learned:

Carlsbad

What Makes It Unique:

Permitting Timeline: 4-5 months

Lessons Learned:

Encinitas

What Makes It Unique:

Permitting Timeline: 3-4 months (faster with pre-approved plans)

Lessons Learned:


Compact 1/1 ADU in Normal Heights.

Financing Your ADU: 2025 Options

Most home remodeling San Diego projects require significant capital. Here are your financing options:

Home Equity Line of Credit (HELOC)

Best For: Homeowners with substantial equity who want flexibility

Cash-Out Refinance

Best For: Homeowners with low existing mortgage rates who need large amounts

Construction-to-Permanent Loan

Best For: Those building new detached ADUs who want specialized financing

San Diego Housing Commission ADU Finance Program

Best For: Moderate-income homeowners within City of San Diego limits

CalHFA ADU Grant Program

Best For: Qualifying homeowners statewide

FHA 203(k) Rehabilitation Loan

Best For: Homebuyers purchasing property planning ADU addition


Return on Investment: What to Expect

ADUs offer multiple financial benefits beyond rental income:

Rental Income Potential (2025 San Diego Market)

Studio ADU (400-500 sq ft): $1,800 – $2,500/month 1-Bedroom ADU (600-800 sq ft): $2,200 – $3,200/month 2-Bedroom ADU (900-1,200 sq ft): $2,800 – $4,000/month

Annual Rental Income: $26,000 – $48,000 depending on size and location

Property Value Increase

According to UCLA’s Lewis Center for Regional Policy Studies (2024), permitted ADUs in Southern California increase home values by $150,000 – $300,000 depending on size and integration.

National Association of Realtors data shows homes with ADUs sell for approximately 35% more on average in major U.S. cities.

Payback Period

With typical rental rates and construction costs, most San Diego ADU contractors see homeowners achieving positive cash flow within 5-10 years, assuming:

Tax Advantages

Consult with a tax professional—ADU tax treatment varies by situation.


Studio ADU in Vista, CA

Common Pitfalls to Avoid

After managing numerous room addition San Diego and ADU projects, we’ve seen these mistakes cost homeowners time and money:

1. Underestimating Total Costs

The Problem: Focusing only on construction costs, ignoring design, permits, site work, and utilities. The Solution: Budget 20-25% above contractor’s construction estimate for soft costs and contingencies.

2. Skipping Feasibility Assessment

The Problem: Investing in design only to discover property constraints prevent ADU construction. The Solution: Always start with professional feasibility study ($1,500-$3,500) before design investment.

3. Choosing Contractor on Price Alone

The Problem: Lowest bid often comes from inexperienced or poorly-capitalized contractors. The Solution: Evaluate experience, ADU-specific portfolio, references, and licensing carefully.

4. Incomplete Permit Submittals

The Problem: Missing documentation causes delays and multiple resubmittal cycles. The Solution: Work with experienced ADU architects near me familiar with local requirements.

5. Ignoring Rental Market Research

The Problem: Building ADU that doesn’t match market demand or achievable rents. The Solution: Research comparable rentals in your neighborhood before finalizing design.

6. Failing to Plan for Construction Impact

The Problem: Underestimating noise, dust, yard disruption, and timeline on daily life. The Solution: Realistic expectations and communication with family. Consider temporary relocation for major phases.

7. Neglecting Long-Term Maintenance

The Problem: Not budgeting for ongoing maintenance, repairs, and property management. The Solution: Budget 1-2% of ADU value annually for maintenance, plus property management if renting.


Working with the Right Team: What to Look For

Successful ADU projects require experienced professionals. Here’s what to seek in your San Diego home remodeling contractors:

Qualities of Excellent ADU Contractors

Questions to Ask Potential Contractors

  1. How many ADUs have you completed in San Diego County?
  2. Can you provide references from recent ADU clients?
  3. Do you handle both design and construction, or will I need separate architect?
  4. What is your typical timeline from contract to completion?
  5. How do you handle cost overruns and change orders?
  6. What is included in your base price versus optional upgrades?
  7. Do you pull all permits and schedule inspections?
  8. What is your warranty and post-completion support?
  9. How do you handle project communication and progress updates?
  10. What happens if the project timeline extends beyond original schedule?

Red Flags to Watch For


Conclusion: Making Your ADU Dream Reality

Building an ADU represents one of the smartest investments San Diego homeowners can make in 2025. Whether you need multigenerational housing, rental income, or simply want to maximize your property’s potential, ADUs offer unmatched flexibility and return on investment.

The key to success lies in thorough planning, realistic budgeting, and partnering with experienced professionals who understand the unique requirements of San Diego County municipalities.

As experienced contractors san Diego families trust, Remade Home Construction has guided homeowners through every step of the ADU journey—from initial feasibility through final certificate of occupancy. Our design-build approach ensures seamless coordination, transparent pricing, and quality construction that adds lasting value to your property.


Start Your ADU Journey with Confidence: Free Feasibility Study & Project Discovery

The difference between a successful ADU project and a costly mistake comes down to planning. Before investing thousands in design or breaking ground, you need to understand exactly what’s possible on your specific property.

That’s why we’re offering San Diego homeowners a comprehensive, no-obligation ADU Discovery Package—completely free. Contact us for more info and to schedule yours, no strings.

What’s Included in Your Free ADU Discovery Package:

1. Complete Property Feasibility Analysis Our team will visit your property to assess:

2. Preliminary Construction Estimate Based on your property assessment, we’ll provide:

3. Project Discovery Consultation During our in-depth consultation, we’ll discuss:

4. Custom Action Plan You’ll walk away with:

Why Choose Remade Home Construction for Your ADU?

As one of San Diego’s most trusted ADU builders San Diego families rely on, we bring:

Design-Build Expertise – Single point of contact from concept through completion
Local Knowledge – Extensive experience navigating San Diego County’s unique municipal requirements
Transparent Pricing – No surprises, no hidden costs, no change order games
Proven Track Record – Portfolio of completed ADUs across San Diego County
Veteran-Owned Values – Integrity, precision, and commitment to excellence
Full-Service Approach – We handle design, permitting, construction, and final inspections

Ready to Discover Your Property’s ADU Potential?

Don’t waste time and money wondering what’s possible. Get definitive answers from San Diego’s trusted san diego adu contractor team.

Schedule Your Free ADU Discovery Package →

Limited Availability: We limit free feasibility studies to ensure each homeowner receives thorough attention. Discovery packages are scheduled on a first-come, first-served basis.

Your ADU journey starts with a single conversation. Let’s make your vision reality.


Wishing you the best in your ADU journey,
The Remade Home Construction Team

Remade Home Construction is a US Navy Veteran-owned residential general contractor san diego homeowners trust for ADU construction, kitchen remodel san diego projects, bathroom remodel san diego work, home additions san diego, and complete property transformations throughout San Diego County.


ADU bathroom in North Park.

Frequently Asked Questions

Q: Do I need to live on the property if I build an ADU?
A: No owner-occupancy requirement exists for standard ADUs through at least 2025. However, Junior ADUs (JADUs) require the property owner to live in either the main house or the JADU itself.

Q: Can I use my ADU as an Airbnb or short-term rental?
A: Generally no. City of San Diego requires 31-day minimum rentals for ADUs unless the property held a valid short-term rental license prior to 2017. State law prohibits short-term rentals under 30 days for ADUs to preserve long-term housing stock.

Q: How long does it take to build an ADU from start to finish?
A: Most projects take 10-18 months total. This breaks down to: feasibility (1-2 weeks), design (4-8 weeks), permitting (2-6 months), and construction (4-8 months). Garage conversions can be completed in as little as 6-8 months total.

Q: Do I need to provide parking for my ADU?
A: Parking requirements are waived for ADUs if your property is:

Q: Will building an ADU affect my property taxes?
A: Yes, your property will be reassessed and property taxes will increase based on the added value. However, the increase is typically offset by rental income within 1-2 years.

Q: Can I sell my ADU separately from my main house?
A: As of August 2025, the City of San Diego adopted AB 1033, allowing ADUs to be sold as separate condominiums. This makes San Diego the first city in the county to adopt this option. Other jurisdictions are considering similar ordinances.

Q: What if my homeowners association (HOA) doesn’t allow ADUs?
A: California law prohibits HOAs from banning ADUs entirely. While HOAs may impose reasonable design and aesthetic standards, they cannot prohibit construction of ADUs that comply with state law.

Q: Do I need separate utility meters for my ADU?
A: It depends. Detached ADUs typically require separate water, gas, and electrical connections. Attached ADUs and JADUs can often share utilities with the main house, though separate metering may benefit landlords for billing purposes.

Q: What happens if I build an ADU without permits?
A: Unpermitted ADUs create serious problems: inability to legally rent, difficulty selling property, liability issues, potential fines, and requirement to bring to code or remove. AB 2533 (2024) created a pathway to permit ADUs built before January 1, 2020, but extensive upgrades are typically required.

Q: Are there size limits for ADUs in San Diego?
A: Yes: