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West Fraser

ADUs Drive Up Listing Price on Homes for Sale

Homes for sale with an accessory dwelling unit are priced 35% higher than homes without one, according to a report by Porch, a platform that connects homeowners with home improvement professionals.

Roughly 2% of homes across the country have an ADU, according to the report, which are growing in popularity at a rate of 9% per year. These smaller housing units that share property with a primary residence are a potential source of housing in areas with limited supply, and are often raised as a potential solution to the lack of affordable housing. However, Porch found the price to build an ADU ranges from $95,000 to $400,000 depending on the features of the unit and the market it’s being built in.

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“That seems like a lot of money (and it is!), but it is worth bearing in mind that single-family homes in these highly desirable areas can cost between two to four times greater,” according to the company.

Sun belt states of California, Florida and Texas are the big drivers of ADU popularity, but Colorado is in the top 10 states for real estate listings with ADUs in the U.S., as well as ADUs as a percentage of the state’s total sales listings. Colorado accounts for 3.3% of all listings with ADUs in the country, Porch found using data from Trulia, making it the seventh most concentrated. It drops to 10th place for ADUs as a percentage of total state listings at 1.2% of homes for sale with an ADU.

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