The choice to build an accessory dwelling unit (ADU) is ultimately a financial decision. By building an ADU, a homeowner is choosing to make an investment in their property that will provide additional housing and potentially generate a long term financial return.

Unless a homeowner possesses sufficient cash on hand to pay for the cost to build an ADU, the homeowner’s decision also typically involves borrowing funds to pay for the ADU. The good news is that, increasingly, there are a variety of options to finance the cost of building an ADU.