ADU vs. Home Addition: What’s Better for Your Santa Clarita Property?
With a national housing crisis affecting pretty much everywhere, here in California we're no exception. Homeowners across Santa Clarita and Los Angeles County are looking for smart ways to expand their living space, increase home value, and adapt to changing family needs. With real estate prices as high as they are, more and more families are looking to upgrade their current home rather than sell and find something more suitable.
Two of the most common options are building an Accessory Dwelling Unit (ADU) or investing in a traditional home addition.
Both can be excellent investments, but they serve different purposes and come with different benefits, costs, and legal considerations. In this article, we’ll compare the two options so you can decide what’s best for your property—and your goals.
What Is an ADU?
An Accessory Dwelling Unit (ADU) is a secondary residential unit on the same lot as your main home. It has its own kitchen, bathroom, living area, and entrance. Common types of ADUs include:
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- Detached backyard cottages
- Attached units with a separate entrance
- Converted garages or basements
- Above-garage apartments
- Junior ADUs (JADUs), which are under 500 square feet and located within the existing home
Thanks to recent changes in California housing laws, it’s now easier than ever to build an ADU in cities like Santa Clarita and throughout Los Angeles County.
What Is a Home Addition?
A home addition expands the living space of your existing home. This could be a new bedroom, family room, expanded kitchen, second-story addition, or anything else that becomes part of the main structure.
Unlike ADUs, home additions do not require a separate kitchen or entrance. They are intended for the homeowner’s own use and are fully integrated with the layout and design of the existing house.
Why Homeowners in Santa Clarita Are Considering ADUs
ADUs have gained popularity in Southern California for good reason. Here’s why:
Rental Income Potential
ADUs can be rented out to tenants, creating a steady stream of passive income. In Santa Clarita, where rental demand remains high, this can make a big difference for homeowners looking to offset their mortgage or generate extra cash flow.
Multigenerational Living
ADUs provide an ideal space for aging parents, adult children, or extended family who need independence without being too far away.
Property Value
Adding an ADU can significantly boost your home’s resale value. Buyers are increasingly looking for homes with additional income potential or space for family.
Privacy
Because ADUs are separate living spaces, they offer more privacy than home additions. This makes them ideal for guests or long-term tenants.
Why a Traditional Home Addition Might Be a Better Fit
While ADUs offer flexibility, traditional home additions are still the preferred option for many homeowners.
Seamless Integration
Home additions are designed to flow with your current layout, providing expanded living space without creating a separate dwelling.
Customization
Whether you need a larger kitchen, more bedrooms, or a home office, additions can be tailored to your exact needs.
Cost-Efficient Utility Use
You don’t have to duplicate kitchens, bathrooms, or utility connections. A single HVAC system and shared electrical/plumbing can reduce construction costs.
No Tenant Management
If you don’t want to deal with renting or managing another living space, a home addition is a simpler, stress-free solution.
Local Regulations in Santa Clarita
ADU Requirements (City of Santa Clarita)
The City of Santa Clarita allows homeowners to build one ADU per lot and potentially one Junior ADU (JADU), depending on the circumstances. Key regulations include:
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- Size: Detached ADUs may be up to 1,200 square feet. Attached ADUs are limited to 50% of the main home’s square footage.
- Setbacks: Minimum four-foot side and rear yard setbacks.
- Parking: One off-street parking space may be required unless you’re within half a mile of public transit or meet other state-defined exemptions.
- Design Approval: Full plans must be submitted for approval by the Planning Division before permits are issued.
- JADUs: Must be no larger than 500 square feet and contained within the existing structure.
Sources:
Home Additions in Santa Clarita
While not subject to the same state-level ADU laws, home additions must comply with local building codes and zoning ordinances. You’ll need:
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- Detailed construction plans showing the scope of work
- Structural, electrical, plumbing, and energy code compliance
- Permit approval from the city before construction begins
Cost Comparison
ADU Construction Costs
The cost of building an ADU in Santa Clarita typically ranges from $100,000 to $350,000 or more, depending on the type of unit, the size, site conditions, and design finishes. Garage conversions are generally on the lower end of that range, while detached units are more expensive.
ADUs also require separate utility hookups, which can add to the cost. It's really difficult to give an accurate price over the Internet as there are so many variables and every property we build an ADU is different.
Home Addition Costs
Traditional home additions in the area generally cost between $100 and $300 per square foot, depending on the size and complexity of the project. Because they share utilities and infrastructure with the main home, the per-square-foot cost is often lower than a detached ADU.
Return on Investment
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- ADUs may generate income and have high resale value potential, especially in areas with strong rental demand.
- Additions increase usable space and value for your own enjoyment, with more immediate benefits for your day-to-day lifestyle.
Construction Timeline and Disruption
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- ADUs: These typically take longer to plan due to design, permitting, and utility requirements. However, because they’re built separately, disruption to your main home is usually minimal during construction.
- Additions: Often quicker to design and permit, but they may involve more disruption to your home life, especially if the addition connects to critical spaces like the kitchen or bedrooms.
Which Option Is Right for You?
Consider the following:
- Do you want to rent the space or keep it for personal use?
- Is privacy a priority?
- How much are you willing to invest?
- Are you planning to stay in your home long-term or sell soon?
- Do you need immediate extra space or long-term income?
If you're unsure, All Exclusive Construction can help you weigh the pros and cons based on your property layout, goals, and budget.
Our Service Area
All Exclusive Construction proudly serves homeowners and commercial property owners across Southern California, including:
- Santa Clarita
- Beverly Hills
- Calabasas
- Culver City
- Los Angeles
- Orange County
- Santa Monica
- Ventura County
- Westlake
We’re a licensed, and insured general contractor with years of experience designing and building high-quality ADUs, home additions, and complete remodeling projects.
Let's Talk About Your Project
Whether you're thinking about building an ADU in your backyard or adding more space to your current home, we’d love to help.
Call (818) 836-1722 or fill out our online contact form to schedule your consultation. We’ll walk you through your options, the permitting process, and what’s possible based on your home and your goals.
At All Exclusive Construction, we don't just build—we bring your vision to life with craftsmanship you can trust.
