DC Structures
Why ADUs Are Booming in Oregon
With its lush forests, mild climate, and easy access to mountains, beaches, and hiking trails, Oregon offers an unmatched quality of life. Yet as housing costs continue to rise across key markets like Portland, Bend, and Eugene, many homeowners are turning to Accessory Dwelling Units (ADUs) as a flexible, cost-effective solution to expand their living space, generate rental income, or support multi-generational living.
In response to growing housing demand, the state and its major cities have simplified the process of building secondary dwelling units on residential lots, encouraging sustainable tiny house development and more affordable housing options.
Prefab ADU design plans make this process even easier. Designed for efficiency, durability, and compliance with Oregon’s zoning and energy codes, these accessory dwelling units streamline every stage of construction. With a prefab ADU model from DC Structures, you can build a premium backyard home or dwelling unit on a timeline and budget that fits your lifestyle, needs, and preferences—partnering with a trusted local company known for extraordinary craftsmanship and results.
Our ADU Kits
Our prefab ADU kits provide a faster, more efficient way to build a backyard home in locations throughout Oregon. Whether you choose one of our pre-designed models or collaborate with our DC Design Studio to create a custom design, your accessory dwelling unit can be tailored to your property, lifestyle, and long-term goals. Explore our ADU architecture and discover the many possibilities awaiting your guest house design.
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 Oregon
ADU construction costs in Oregon depend on factors like site conditions, local permitting fees, and whether you’re converting existing living space or building new. Prefab ADU designs help reduce builder costs and shorten construction times while maintaining top-quality craftsmanship.
According to Angi’s List, garage or basement conversions in Portland typically range from $7,000–$15,000, while detached backyard ADUs tend to cost between $110,000 and $285,000+ nationwide. With our ADU design plans, total project costs usually come out to three to five times the price of your design and materials package, depending on site conditions and finish selections for your kitchen, bathroom, and bedroom spaces within your ADU.
Oregon ADUs
Permitting, Zoning & ADU Regulations in Oregon
Permitting and zoning rules in Oregon can vary by city and county, but recent state legislation has made building an accessory dwelling unit easier than ever. Below are general state-level guidelines to research and confirm before beginning your project:
- Maximum Units Per Lot: Depending on your jurisdiction, you may be allowed up to two ADUs. For example, Salem permits one ADU per lot, while Tigard and Portland allow up to two—though only one may be attached to the primary residence.
- Size Limits: Most cities allow detached dwelling units up to 800 sq. ft., though local ordinances may vary.
- Height & Setbacks: Height limits typically range from 15 to 30 feet, depending on zoning district and lot size.
- Owner-Occupancy: In most regions, there are no owner-occupancy requirements, making ADUs more accessible for property owners with vacant or rented primary residences.
ADU Incentives, Grants & Financing in Oregon
Several Oregon cities and counties offer incentives and low-interest loans to encourage ADU construction. These may include waived or reduced system development charges (SDCs), pre-approved plans, and grants or rebates for sustainable features such as solar panels and high-efficiency HVAC systems. Even where financial assistance is limited, prefab ADU kits provide significant cost savings through faster build times, design flexibility, and simplified permitting—allowing you to create a custom, energy-efficient home on a budget that works for you. If you need assistance finding the right lender for your ADU project, our team can connect you with a trusted financing professional in your area.
Best Cities & Counties to Build an ADU in Oregon
Certain regions in Oregon are especially ADU-friendly, thanks to streamlined permitting, local incentives, and strong rental demand. Here are a few standout areas to consider:
Portland
Offers generous incentives for backyard dwelling unit builds and conversions, including an SDC waiver program that can save homeowners thousands in fees.
Eugene
Provides nearly a dozen pre-approved ADU plans—including one free option—and an expedited permitting process for faster project starts.
Bend
One of Oregon’s fastest-growing housing markets, Bend recently passed new development incentives offering tax increment reimbursements for accessory dwelling unit builders.
Whether you live in the Willamette Valley, on the coast, or in Central Oregon, ADU opportunities are expanding statewide, making these tiny homes and backyard cottages a practicality rather than a luxury.
DC Structures
ADU Project Gallery
Our completed ADU projects showcase the versatility of prefab design across Oregon’s unique landscapes.
How ADUs Can Boost Property Value in Oregon
Building an ADU is one of the most effective ways for customers to enhance their property’s value and earning potential. Homes with accessory dwelling units often sell for significantly more and can generate consistent rental income.
In Oregon, the median home price is around $500,000, and adding a backyard unit or accessory rental can increase resale value by 25% to 35%, depending on size, design, and location. Monthly rental income for ADUs can reach $2,500 or more, though rates vary by neighborhood, demand, and season.
Start Your Oregon ADU Journey
Ready to bring your backyard home or guest house vision to life in Oregon? Our team manages permitting, design, engineering, and delivery statewide—so you can build with confidence from concept to completion. Gather more information for your accessory dwelling unit build below!