Garage Conversion vs. Detached ADU: Which Option Suits Your Property Best in San Diego?
California is well-known for its costly real estate, and San Diego County is not an exception. With the rising housing costs, homeowners turn to flexible living solutions, such as ADUs, and face a dilemma: to convert an existing garage into additional living space or to build a detached ADU (Accessory Dwelling Unit). Many Californians explore the potential of ADUs to create additional rental income streams or to accommodate family members.
Today we provide insights on the benefits, costs, and challenges of each option to help you make the right choice.
What Is as Accessory Dwelling Unit?
An ADU, or accessory dwelling unit, is an additional residential unit that shares the lot with the primary home. It provides independent living space and individual facilities, such as a kitchen, bathroom, and sleeping area.
Building an ADU in San Diego
The state of California continues making it easier to build ADUs through lifting some restrictions. Recently, California legislation, such as AB68 and SB9, has notably simplified the ADU building process and reduced the paperwork.
The renewed legal environment has led to the significant growth of ADU construction across San Diego County — many homeowners consider an ADU as an attractive solution for increasing living space or getting an additional income source.
Detached ADUs vs.Garage Conversion
San Diego homeowners have two primary options for ADU development: building new detached units or converting existing structures like garages. Each variant presents distinct advantages and challenges that align differently with budgets, lifestyles, and property conditions. Let’s explore both options in more detail.
San Diego ADU Costs
In San Diego, costs of conversion projects typically range from $100 to $200/sq. ft. and depend on the quality of selected materials and the work scope. The price tag of detached ADUs is almost twice as high, from $200 to $400 per square foot. These are average rates as high-end constructions with superior finishes may demand much higher investments.
A rule of thumb for any construction project is to set aside an extra 20% of the estimated budget for unexpected costs, such as worn-out piping or wiring replacement.
Rental Potential and ROI
Despite higher initial investments, the potential rental income from a detached unit is higher compared to garage conversion. If a converted studio in San Diego can generate around $1,500-2,200 per month, a detached one-bedroom ADU might rent for $2,000-3,000 based on amenities and location.
Both options can bring additional income: the payback period for conversions can be shorter given lower initial costs but detached units usually provide greater long-term income.
Timeline and Permits
Both converted and detached projects require permits, including plumbing, electrical, and building. However, detached constructions may trigger additional hurdles, such as design approvals or environmental assessments.
Typically, garage conversion projects take from two to four months to complete. A detached unit construction can take from 4 to 8 months because the project requires more site assessments and work, as well as a greater number of permits. Add here multiple inspections throughout the construction process — they influence the timelines too.
The table provides a side-by-side comparison of two ADU options:
Feature | Garage Conversion | Detached ADU |
Costs per square meter | $100-200/sq.ft. | $200-400/sq.ft. |
Construction time | 2-4 months | 4-8 months |
Size potential | Limited to existing structure | Flexible |
Privacy level | Lower (often connected to the primary house) | Higher |
Utility connections | Often can use existing systems | May need new connections |
Important: Getting ADU permits in San Diego is pretty challenging for people unfamiliar with state regulations and building codes, so it is recommended to hire a reputable local contractor. Experienced pros will manage your project from A to Z, including getting all the required permits.
What Type Of ADU Is Right for You?
The final decision depends on your goals, available space, timeline, budget, and privacy needs. Garage conversions are faster to complete and cheaper but command lower rents and less privacy. Detached ADUs bring higher rental income, provide more separation but require backyard space, more time to complete and higher investments.
Groysman Construction, a San Diego-based remodel company, rightfully earned the reputation of one of the most trusted ADU builders in San Diego. With over 30 years in the market and countless successful projects, the company is well aware of all local regulations and building codes. Additionally, the experienced pros always consider climate and weather conditions to ensure the durability of the structure and its functionality.
If you consider building an ADU to enhance your property’s value, expand living space, or add up income potential, contact our San Diego ADU pros today. We will help to choose the right option tailored to your needs, navigate the permitting procedures, and create a beautiful and functional living space.
FREQUENTLY ASKED QUESTIONS
How does an ADU affect property taxes?
When you build an ADU, your property taxes will increase based on the added value of the ADU (not the primary home). Typically, the increase is around 1%. If you plan to rent out the unit, you can apply for tax deductions (expenses on maintenance, depreciation, energy-efficient upgrades, etc.)
How much does it cost to build an ADU in San Diego?
The average cost of a detached ADU in San Diego is around $150,000, while basic garage conversion costs vary between $80,000 and $150,000. However, you need to keep in mind potential extra costs, such as unexpected wiring and/or plumbing updates.
At Groysman, we get all the required permits and navigate the claim filing process.
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