DC Structures
Why ADUs Are Booming in New Mexico
It’s no secret: New Mexico has a well-documented housing shortage, and researchers have reported that the number of homes for sale statewide fell sharply from 2018 to 2024. In markets like Albuquerque and Santa Fe, rent growth has also been linked to the state’s broader shortage, adding pressure for households looking for flexible, attainable housing. Across the state, homeowners and local governments are increasingly looking at Accessory Dwelling Units (ADUs) as one practical way to add housing within existing neighborhoods, especially as New Mexico lawmakers continue debating ADU-focused legislation.
Built for longevity and designed with intention, our accessory dwelling units offer a modern way to expand a property’s potential while keeping your project efficient and predictable throughout the process. Our prefabricated ADU kits are engineered to streamline the build process and support code-compliant construction, which can be especially helpful when timelines and permitting vary by city or county. With more than two decades of experience, DC Structures is trusted for crafting durable, customizable designs that elevate any property.
Our ADU Kits
Our prefab ADU kits provide a faster, more efficient way to build a backyard house: Each kit is designed to be custom-tailored to the local climates, zoning requirements, and lifestyle needs in New Mexico, and through our customizable models you can tailor everything from layout to bedrooms to finishes, with full plan details, flexible options, and dedicated services for every model.
Depending on your preferences, you can prioritize an open-plan kitchen, additional storage, or a private bathroom setup that fits your property and local zoning requirements.
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 New Mexico
An accessory dwelling unit (often called a “casita” in places like Albuquerque) can vary widely in price depending on size, scope, and site conditions, so it’s best to request an estimate based on your property details and build options.
In broader 2025 construction breakdowns, accessory dwelling unit builds are commonly cited in the $180 to $400 per square foot range, with totals for a typical 600–800 sq. ft. accessory dwelling unit often landing around $150,000 to $300,000 before project-specific variables push costs up or down.Variables like site access, features, foundation work, utility connections, and whether you’re building a detached new ADU versus converting existing space (like a garage) can significantly change the final price—along with finish selections like a full kitchen, bedroom count, living and family space, added bathroom, or expanded storage.
New Mexico ADUs
Permitting, Zoning & ADU Regulations in New Mexico
We have an in-house architectural design team that will meet the unique requirements of your city’s regulations and zoning requirements, with permitting services that help you navigate local permits and review timelines.
While New Mexico does not have a single, uniform statewide accessory dwelling unit standard that overrides local zoning, ADU rules are commonly set by cities and counties. So what’s allowed (and how) can change from one jurisdiction to the next.
ADU Incentives, Grants & Financing in New Mexico
New Mexico doesn’t have a widely advertised, standing statewide homeowner accessory dwelling unit grant or fee-waiver program that applies everywhere, but some local and state programs can still support ADU-friendly housing work. In Albuquerque, the city’s “Creating a Casita” resources include free guidance intended to make it easier (and potentially less costly upfront) for homeowners to pursue an accessory dwelling unit. At the state level, the New Mexico Finance Authority has a Local Government Planning Fund affordable-housing planning grant of up to $50,000 for eligible entities creating affordable housing plans.
Best Cities & Counties to Build an ADU in New Mexico
Albuquerque
Albuquerque has a clearly documented accessory dwelling unit pathway, with official city resources covering requirements, process guidance, and even free construction and builder plans to help homeowners move forward more efficiently.
Las Cruces
Las Cruces highlights expanded housing choices by allowing accessory dwelling units by right in all residential zones under its local land use framework.
Santa Fe
Santa Fe County provides an official ADU checklist and permit fee schedule.
DC Structures
ADU Project Gallery
How ADUs Can Boost Property Value in New Mexico
With high-demand areas like Albuquerque and Santa Fe, New Mexico’s rental market can make accessory dwelling units an attractive option for homeowners seeking flexibility and potential rental income—HUD’s Albuquerque housing market analysis notes a very low sales-market vacancy estimate (1.2%) as of 2023, reflecting tight conditions.
Beyond monthly income, an accessory dwelling unit can help offset housing costs and support long-term value in a market where New Mexico’s average home value is about $308,79, especially when a well-designed accessory dwelling unit adds functional space without requiring a new lot.
Start Your New Mexico ADU Journey
Ready to bring your ADU vision to life in New Mexico? Our team handles permitting, engineering, and delivery statewide, making it easy to build your prefab backyard house with confidence.
With expert services, clear project details, and guidance on the best model and options for your property’s practicality, efficiency, and compact living goals, you can make a decision you feel great about!