Why Build an ADU in Los Angeles?

Transform your backyard into a powerful investment. Generate rental income, increase property value, and create flexible living space in one of America's most desirable markets.

Generate Monthly Income

$2,000 - $3,400/month

Los Angeles rental market offers strong returns

  • Studio ADUs: $2,000-2,400/month average
  • 1-bedroom ADUs: $2,600-3,000/month average
  • 2-bedroom ADUs: $3,200-3,800/month average
  • High demand, low vacancy rates across LA

Increase Property Value

$150K - $300K+

Instant equity added to your home

  • ADUs typically add 60-80% of construction cost in value
  • Los Angeles market premiums for additional units
  • Attracts more buyers when selling
  • Appraised value increase for refinancing

Tax Advantages

Significant Savings

Multiple deduction opportunities

  • Depreciation deductions on rental property
  • Interest deductions on construction loans
  • Property tax deductions
  • Maintenance and repair deductions

Flexible Usage Options

Multiple Benefits

Adapt to your changing needs

  • Rental income when you need it
  • Guest house for family and friends
  • Home office or creative studio
  • Multi-generational living solution

ADU ROI Calculator

See your potential return on investment with Los Angeles market data

Your Property Details

Your Projected Returns

Construction Cost$195,000
Property Value Increase$136,500
Monthly Rental Income$2,800
Annual Rental Income$33,600
Annual ROI17.2%
Payback Period5.8 years

*Estimates based on current Los Angeles market data. Actual results may vary.

Why Los Angeles is Perfect for ADUs

Unique market conditions make LA one of the best cities in America for ADU investments

Housing Shortage

3.5 million housing units short

High demand keeps rental rates strong and vacancy rates low across all LA neighborhoods.

Supportive Regulations

Streamlined approval process

California and LA have simplified ADU permitting, making the process faster and more predictable.

Strong Rental Market

Average 3-5% rent increases annually

Consistent rental growth provides reliable income escalation and protects against inflation.

Property Value Growth

6-8% annual appreciation

Los Angeles real estate continues to appreciate, amplifying your ADU investment returns.

Diverse Tenant Pool

4 million+ renters

Young professionals, families, and students create steady demand for quality rental units.

Climate Advantage

Year-round usability

Perfect weather means outdoor space and smaller units feel more spacious and desirable.

Ready to Start Building Wealth?

Get your free property evaluation and discover your ADU investment potential

Calculate My ROI