Why Building an ADU as a Granny Flat Adds the Most Resale Value

ADUs, or accessory dwelling units, are one of the most popular ways homeowners choose to raise their property’s value. By adding an additional living space that can be used for a variety of purposes, you can significantly increase the appeal of your property, especially if you do not have many other stand-out features or amenities to offer.

However, not all ADUs are built the same, and one of the most practical ADUs to add to your property is undoubtedly a granny flat.

In this article, as the go-to ADU builders in San Jose, we will explain what an ADU is and why a granny flat should be your first choice when considering constructing one on your property.

What Is an ADU?

An ADU is a self-contained living space that is built on the same property as your home or primary residence and can serve a variety of functions, such as:

  • An extra living space for a growing family
  • A rental unit generating additional income
  • A home office or home studio
  • A guest house for visitors when staying over
  • A space for aging parents or adult children

What Are the Benefits of Building an ADU as a Granny Flat?

If you work from home and require a home office or a home studio, a granny flat can provide the perfect work-life balance by creating a separate space to work from, allowing increased productivity and creativity.

For families looking to provide independent living arrangements for elderly parents or adult children, granny flats are a great solution as they offer privacy and independence while still allowing for close proximity to loved ones.

Additionally, granny flat ADUs are a sustainable choice that has helped reduce the pressure of the housing shortage in many cities. They also help boost home resale value, and as a result, have become increasingly popular in urban areas where housing is limited and expensive.

Whether it be through increasing your property value, long-term tenancy, or short-term accommodation such as Airbnb, a granny flat is a great choice for people looking to make money from their property additions in both the short and long term.

How Does an ADU as a Granny Flat Add Value to Your Home?

Ideal for homeowners, ADUs increase the resale value of your property, as they not only increase the living space but also increase the overall value of your home and provide a long-term investment opportunity. It has been found that homes with an ADU are priced up to 35% more than homes without one.1

Here are some reasons why ADUs are such a valuable add-on for properties and keeping San Jose ADU builders busy:

  • They provide additional living space that can be used for various reasons such as a guest room, granny flat, or home office. This extra space (with kitchen and bathroom) is highly sought after by homebuyers, who are willing to pay more for a home that has it.
  • ADUs allow you the opportunity to rent out your detached granny flat and generate additional income. By doing this, an ADU can pay for itself in just a few years, help pay off your mortgage faster, and continue to provide financial benefits for years to come.

What to Consider Before Building a Granny Flat

While ADUs increase your property’s marketability, and increase the value of your home when you decide to sell it, building an ADU can be a significant financial investment.

Before you begin the process of building a granny flat ADU, there are a few factors you need to consider, including:

  • Determining whether your property is zoned for an ADU, as not all areas allow for additional dwelling units.
  • Obtaining the necessary permits and approvals from your local government municipality for the building of your ADU.
  • Considering the size and layout of your property to ensure that there is enough space to accommodate an ADU without compromising your privacy or safety.
  • Deciding on the purpose of the ADU, whether it be for personal use or to be used as a rental property.
  • Researching the potential rental income, as well as the resale value of the property with the addition of the ADU, to help you gauge if the financial investment is worthwhile in the long run.

One of the easiest ways to take care of all these considerations is to consult with a professional contractor like Adore Homes. As trusted and experienced ADU builders in San Jose, we understand the work and thought that goes into building an ADU and can help guide you through it.

Adore Homes’ ADUs

If you are looking for the best ADU builders in the San Jose area, look no further than Adore Homes.

With a range of ADU designs to choose from, and options for studios right through to three-bedroom units, as well as custom designs, Adore Homes can help you create the perfect additional space to fit your budget and needs.

With our commitment to customer satisfaction and attention to detail, you can use the most trusted ADU builders in San Jose to bring your project to life using high-quality materials with a superb finish.

Taking the hassle out of building a granny flat ADU, Adore Homes handle all the permits, electrical and plumbing lines, property lines, zoning laws—you name it, our qualified San Jose ADU builders can do it.

When you work with the best ADU builders in San Jose, we can provide a streamlined process for building your granny flat. From design to construction, we ensure that your project is completed on time and to your satisfaction.

While an ADU adds to the resale value of your property, we do understand that it can be a costly investment. Adore Homes aims to make the process of building an accessory dwelling unit more accessible and affordable.

If you’ve been researching San Jose ADU builders and looking to take the next step toward building your dream ADU and increasing your property’s resale value, contact Adore Homes today.


  1. https://www.nar.realtor/magazine/real-estate-news/study-adus-can-add-35-to-home-s-value

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