DC Structures

Why ADUs Are Booming in Utah

Utah—a mountain-filled, high-desert haven known for its national parks, snow-capped peaks, and fast-growing cities—offers one of the most promising environments in the country for ADU development. With a population of 3.6 million and projected growth to 5.6 million by 2065, the state is experiencing some of the fastest expansion in the U.S., driving strong demand for flexible, affordable housing options. Accessory dwelling units have emerged as a forward-thinking option, allowing homeowners to increase property value, support multi-generational living, and provide budget-friendly accommodations for newcomers, students, and seasonal workers.

Utah has also taken meaningful steps to support ADU adoption through statewide legislation that requires many cities to permit internal accessory dwelling units and encourages streamlined approval for detached units. Combined with the state’s strong rental demand and outdoor-centric lifestyle, backyard tiny homes have become an attractive investment for homeowners seeking additional living space or steady rental income.

 

 

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At DC Structures, we specialize in crafting high-performance, prefabricated accessory dwelling units that enhance your property while delivering long-term financial and lifestyle benefits. Whether you envision a guest house, rental cottage, studio, or multi-generational living space, our ADU models offer a sustainable, cost-effective path to achieving your goals in the Beehive State.

Our ADU Kits

Our accessory dwelling unit kits combine practicality, flexibility, and long-term durability, delivering everything you need to create a beautifully designed backyard home in Utah. Using precision CNC machining and advanced design tools, we craft prefab building packages that streamline construction, reduce on-site labor, and ensure exceptional quality and efficiency from start to finish.

Sitka
Sitka

SitkaCrafted for backyard use, whether as a guest suite, artist studio, or creative workspace, our Sitka ADU Kit offers limitless flexibility within a compact framework.

Average Cost to Build an ADU in Utah

The cost of building an accessory dwelling unit in Utah varies widely depending on location, design complexity, materials, builder services, and site conditions.

Nationally, ADU projects typically range from $60,000 to $285,000, according to Angi’s List. In Utah, detached accessory dwelling units often fall near the middle to upper end of that range—averaging around $200,000—though final pricing can shift significantly based on excavation needs, floor plan details, snow-load requirements, and the services provided by your builder.

At DC Structures, we generally advise homeowners that turnkey dwelling unit costs land between three to five times the price of their design and materials package. For example, if your accessory dwelling unit is priced at $50,000, your total project cost would likely range between $150,000 and $250,000, depending on labor rates, utilities, and finish preferences. To receive the most accurate estimate for your property, room plans, and goals, we encourage you to connect with our team directly.

A modern house with large windows sits in a snowy landscape under a clear blue sky, surrounded by snow-covered trees.
Utah ADUs

Permitting, Zoning & ADU Regulations in Utah

Utah is widely considered an ADU-friendly state, with legislation requiring cities to allow internal accessory dwelling units in single-family homes and leaving rules for detached units to local governments. Because each city sets its own standards for size, placement, parking, and design, homeowners in areas like Salt Lake City, Provo, Ogden, and Millcreek will find detailed guidelines specific to their zoning district.

Common ADU regulations across Utah include:

  • Use & Type: Internal accessory dwelling units are permitted statewide; detached ADUs are allowed in many cities but follow local zoning requirements.
  • Size Limits: Many municipalities cap detached tiny homes and guest houses around 1,000 sq. ft., though some—like Moab—allow up to 1,200 sq. ft.
  • Height Restrictions: Detached accessory dwelling units typically fall between 20–25 ft., while some cities permit up to 35 ft., depending on zoning.
  • Setbacks & Lot Standards: Most cities require detached ADUs to follow accessory-structure setbacks and be located behind or beside the primary dwelling.

ADU Incentives, Grants & Financing in Utah

As Utah continues to experience rapid population growth, ADUs are becoming an important part of the state’s strategy to expand affordable housing options. While Utah does not currently offer statewide ADU grants, several local programs provide meaningful financial support for homeowners building a secondary dwelling. In Salt Lake City, for example, qualifying West Side residents can access low-interest ADU construction loans of up to $200,000. Homeowners who rent their ADU to tenants under designated income thresholds may also qualify for 10% loan forgiveness, making ADU development even more accessible in an urban environment. As additional municipalities explore similar incentives, more opportunities for financial assistance may become available across the state. If you’re planning an accessory dwelling unit project in Utah, our team can also help connect you with a trusted local lender who understands ADU financing and can guide you through the loan process with confidence.

Best Cities & Counties to Build an ADU in Utah

Utah’s diverse landscapes—from high-alpine forests to red-rock desert—create a wide range of opportunities for ADU development. While accessory dwelling units are gaining popularity statewide, several cities stand out for their supportive policies, strong rental markets, and long-term investment potential:

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Salt Lake City

With clear ADU guidelines and financial incentives— including low-interest construction loans for qualifying West Side residents—Salt Lake City offers one of Utah’s most accessible pathways to ADU development.

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Provo

Home to Brigham Young University, Provo offers peaceful suburban living alongside a steady rental market driven by students, faculty, and visiting academics. An ADU here can serve as a reliable income-producing rental or a comfortable guest space.

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Moab

A gateway to Arches and Canyonlands National Parks, Moab attracts outdoor enthusiasts and tourists year-round. With its thriving adventure economy, Moab is an excellent location for short-term or seasonal ADU rentals.

Whether you’re located in a bustling metro area or a scenic desert town, Utah offers a wealth of opportunities for ADU development that support both homeowner goals and broader community needs.

DC Structures

ADU Project Gallery

Copperhead Creek Ranch Rogue #1
Copperhead Creek Ranch Rogue #1
The first of two cabins built on this property, this modified Rogue features a sleek and contemporary design defined by its natural wood finishes and built-ins.
Kenwood Deschutes Cabin Kit
Kenwood Deschutes Cabin Kit
Based on a Deschutes Cabin Kit, this post and beam residence makes a cozy addition to our clients' farm in Kenwood, California.
Copperhead Creek Ranch Rogue #2
Copperhead Creek Ranch Rogue #2
Located in Bradley, California, this cabin is the second of two Rogue Cabin Kits on a multi-structure property and a perfect pair to the other!
Oregon Lookout Tower & Treehouse
Oregon Lookout Tower & Treehouse
Standing over 56 feet high, this custom lookout tower and treehouse in Sandy, Oregon, offers incredible views of Mt. Hood from its towering third-level living space.

How ADUs Can Boost Property Value in Utah

With an average home price of around $530,000, Utah’s housing market continues to outpace national trends—driven by strong job growth, a booming tech sector, and steady population increases. Adding an ADU can significantly enhance a property’s long-term value, with studies showing that accessory dwelling units can raise home values by up to 30%. For a typical Utah home, this translates to a potential equity gain of $160,000 or more, making dwelling units one of the most financially rewarding improvements a homeowner can make.

Beyond added resale value, accessory dwelling units, tiny homes, and guest houses offer excellent rental potential in a state where the average monthly rent is approximately $1,795. Whether used for long-term leasing, student housing, or short-term stays near Utah’s national parks and ski resorts, an ADU can generate substantial passive income—often exceeding $100,000 within five years. Combined with their ability to support multigenerational living and increase usable square footage, ADUs represent a smart, future-forward investment for Utah homeowners seeking both lifestyle flexibility and meaningful financial returns.

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Modern kitchen with light wood cabinets, stainless steel oven and range hood, large snowy windows, white marble countertops, deep sink.

Start Your Utah ADU Journey

Ready to bring your Utah ADU project to life? Whether you live along the Wasatch Front, in a peaceful college town like Provo, or near the red-rock landscapes of southern Utah, our team at DC Structures is here to support you every step of the way. From design and engineering to prefabrication and nationwide delivery, we make it simple to build a high-quality, climate-ready ADU tailored to your property, goals, and budget.

Explore your options, customize your design, and start planning a beautiful, durable ADU that enhances your lifestyle and long-term financial future.