DC Structures
Why ADUs Are Booming in California
Home to nearly 40 million residents, California is one of the most desirable—and expensive—places to live in the U.S. With world-class industries, diverse communities, and an unbeatable natural environment, it’s no wonder so many people dream of calling the Golden State home. The challenge, however, has always been affordability. With home prices soaring in metros like Los Angeles, San Diego, and San Francisco, affordability has become one of the biggest challenges for California buyers.
To address this, the state has turned to accessory dwelling units (ADUs) as a creative, scalable housing solution. With a plan of building 2.5 million new units by 2030, California has passed a series of pro-ADU laws that make it easier than ever to add backyard homes, guest houses, or rental dwelling units to your property.
For homeowners, accessory dwelling units offer more than extra living space—they’re a smart investment in flexibility, rental income, and long-term property value. And with prefab, wood-framed ADU design plans like ours, building an ADU in California is simpler, faster, and more affordable than ever.
Our ADU Kits
Our prefab ADU models offer a smarter, more efficient way to build a backyard cottage, guest house, or detached office. Each kit starts with a pre-designed model that can be customized to fit your exact preferences, or you can work with our DC Design Studio to create a fully custom ADU from the ground up. Designed to suit California’s diverse climates and ADU-friendly regulations, our kits make it easier than ever for customers to bring their tiny home dreams to life with their chosen builder.
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 California
In a state like California, ADU construction costs vary widely depending on location, site conditions, services, and build type. Garage or basement conversions can range from $60,000–$150,000, while detached backyard homes typically cost $250,000–$400,000 or more.
One of the most effective ways to reduce expenses—and speed up your project—is by investing in a prefab ADU kit, which streamlines construction, shortens permitting and build timelines, and ensures consistent quality and efficiency throughout. While final pricing depends on your design and material selections, homeowners can generally expect their total build cost to be three to five times the price of their design and materials package, depending on site conditions and finish choices for their kitchen, bathroom, and bedroom spaces. This scalable architecture lets you tailor your accessory dwelling unit investment to your vision, budget, and lifestyle needs. For an accurate estimate for your ADU project, based on factors like your desired size, features, layout, and room plans, be sure to request a quote below!
California ADUs
Permitting, Zoning & ADU Regulations in California
California’s ongoing housing shortage has led to some of the most progressive ADU laws in the nation—making it easier, faster, and more affordable for homeowners to build backyard units. Under current state law, homeowners with an existing or in-development single-family or multi-family dwelling can build up to two ADUs per lot: one junior ADU (JADU) within the primary structure (up to 500 sq. ft.) and one detached ADU (up to 800 sq. ft.).
Local permitting agencies are required to approve or deny ADU permits within 60 days of submission, helping to fast-track projects that once took months or longer. Our team stays up to date on every statewide and local code change, ensuring your project stays compliant and moves quickly through permitting.
For full details on current requirements—including setbacks, height limits, and owner-occupancy rules—visit the California Department of Housing and Community Development’s ADU Handbook.
ADU Incentives, Grants & Financing in California
While California’s statewide ADU Grant Program is no longer active, many local jurisdictions now offer city- and county-level incentives to help homeowners offset costs and streamline the building process. These programs often include pre-approved ADU plans, waived development fees, and low-interest or forgivable loan programs designed to make backyard homes more accessible and affordable in urban, suburban, and rural areas. If you’re exploring California ADU financing options, our team can connect you with a trusted ADU lender and guide you toward available local and regional incentives. With the right financing and resources in place, building your ADU in California can be a smooth, affordable, and deeply rewarding experience.
Best Cities & Counties to Build an ADU in California
With statewide support and strong local demand for flexible housing, several California cities have emerged as top locations for ADU development—offering faster permitting, high rental potential, and homeowner-friendly incentive programs.
Los Angeles
A leader in ADU adoption, LA offers pre-approved plans and optional financing, design, and project management support through local agencies and nonprofit organizations.
San Diego
Known for its generous ADU loan program (up to $250,000 in construction loans) and waived development fees, San Diego makes it easier for homeowners and their families to get projects off the ground.
Santa Cruz
A pioneer in ADU advocacy, Santa Cruz provides free feasibility consultations and project management support through local nonprofits.
Whether you live along the coast or in the Sierras, opportunities to build an energy-efficient ADU are expanding fast across the state. Each of these cities demonstrates how forward-thinking policy and local incentives are making backyard homes more attainable than ever for California buyers and property owners—representing just a fraction of the communities helping to expand ADU opportunities statewide.
DC Structures
ADU Project Gallery
Our completed ADU projects showcase the versatility of prefab design across California’s unique landscapes.
How ADUs Can Boost Property Value in California
In addition to expanding your living space, including storage, bedrooms, and workspace, and offering passive income potential, an ADU can significantly increase your property’s resale value—especially in a high-priced market like California. According to the Federal Housing Finance Agency (FHFA), the median appraised value of single-family homes with accessory dwelling units in California was approximately $1,064,000—compared to $715,000 for similar homes without an ADU as of 2023.
Market trends also suggest that homes with dwelling units may sell for up to 30% more than those without them. Given that the statewide median home price in California is around $750,000 as of 2025, that kind of value increase could easily turn your property into a million-dollar investment. Whether you’re building a tiny house or backyard living space for family use, rental income, or future resale, it’s an upgrade that pays off both functionally and financially.
Start Your California ADU Journey
Ready to bring your ADU plans to life? Our team handles permitting, engineering, and delivery anywhere in California, making it easier than ever to build your prefab backyard home or tiny rental unit with confidence. Request a free quote below to get started on your California accessory dwelling unit today.