While ADU garage conversions are often the most cost-effective path to adding more living space, a new build detached ADU gives you maximum flexibility—more privacy, a fresh layout designed from the ground up, and the ability to place the ADU exactly where it works best on your property. If you want a true “second home” experience with custom design, modern systems, and long-term value, our Sacramento design-build team handles everything from feasibility and plans to permits and construction.
Thinking about adding an ADU in California but not sure if you should convert your garage or build a brand-new unit? In this video below, we break down the real-world pros, cons, and costs of ADU garage conversions vs new build ADUs, so you can decide which option makes the most sense for your property. We’ve also summarized the main points below.
With a garage conversion, the structure is already there—foundation, walls, roof. That means you skip thousands in upfront construction costs.
A new build? You’re starting with an empty patch of dirt—pouring a new foundation, framing every wall, and building a roof from scratch. That’s more flexibility in design, but it comes with a bigger price tag
Here in California, new builds have to meet Title 24 energy code—which means solar panels, adding $10K–$20K to your budget.
Garage conversions? Not considered new construction, so you can skip solar. Plus, you can often tap into existing utilities, avoiding expensive trenching.
Garage conversions can be completed in as little as 3–4 months, thanks to that existing structure. New builds usually take longer—6 months or more—because every piece is built from the ground up.
On average, a garage conversion costs $20K–$50K less than a new build. In a market like Sacramento, that can mean faster ROI—especially if you plan to rent the unit long-term or on Airbnb.
New builds can deliver more square footage and custom layouts, but they also mean higher carrying costs before you see any return.
Garage conversions shine when you want an affordable, fast way to add livable space—perfect for in-laws, rentals, or a home office.
New builds are ideal if you need more space, complete design freedom, or want to add significant square footage to your property.
Want to see what the build process for a new detached ADU is like? From an empty backyard to the go-to spot in Land Park for pool parties, family gatherings, and year-round outdoor entertaining. See how we overcame unique construction challenges to deliver a space that brings families together.
How much does it really cost to build an ADU in Sacramento County? In California, a detached ADU is limited to a maximum total floor area of 1,200 square feet. We just completed a 1,200 sq ft custom ADU in Elk Grove — complete with a two-car garage, open-concept kitchen + living room, and a full master suite. Check out our video below to see a full cost breakdown.
An ADU (Accessory Dwelling Unit) is a second living space on your property—often called a
granny flat, casita, in-law unit, or pool house. To qualify as an ADU, the space must include:
In California, ADUs can be up to 1,200 sq ft and may be attached or detached. ADUs have exploded in popularity because new laws made them easier to build, and they’re a smart way to
add space, increase home value, and create long-term flexibility.
In many cases, yes. Whether you can build an ADU depends on your lot size, zoning, setbacks, and existing structures. If you’re not sure where to start, D. Loesch Construction can help confirm feasibility and recommend the best ADU option for your property.
ADU rent is often comparable to 1–2 bedroom apartments. In California, average rent is commonly around $1,800–$2,000/month.
As a rough example: a $230k ADU renting for $1,800/month—with a 10% vacancy rate and 5%
annual rent increases—can produce an estimated 7–10 year ROI. Plus, you still gain long-term
value, flexibility, and extra living space.
Costs vary depending on size, finishes, and where utilities are located. For example, converting a 3-car garage with minimal sewer tie-in work and limited exterior framing may cost
around $130k.
A brand-new 1,200 sq ft detached ADU with multiple bathrooms, high-end cabinetry, and top appliances—especially far from utilities—can cost $400k+. We’ve even seen million-dollar ADUs in Sacramento. It all depends on your goals and finish level.
Custom Detached ADU Solutions in Sacramento
Follow these steps to build your custom ADU:
(916) 208-3406
dloesch@dlcbuilt.com