Accessory Dwelling Units (ADUs) and Garage Conversions in Los Angeles

What is an ADU?

An Accessory Dwelling Unit (ADU) is a secondary housing unit on a single-family or multi-family residential lot. These units can be detached, attached to the main home, built above a garage, or converted from existing space—like a garage. In Los Angeles, ADUs are a key solution to the city’s housing shortage, offering homeowners a way to create rental income or house extended family members.

Types of ADUs

  1. Detached ADU: Separate structure from the main home.
  2. Attached ADU: Shares at least one wall with the primary residence.
  3. Garage Conversion ADU: Transforms an existing garage into a living space.
  4. Junior ADU (JADU): A smaller ADU (up to 500 sq ft) typically created within the existing walls of a home.

Garage Conversions: A Popular Choice
Garage conversions are especially popular in Los Angeles due to:

  • Existing structures reducing construction costs.
  • Faster permitting and build times.
  • The ability to create income-producing rentals in high-demand areas.

Under California law (Senate Bill 1069 and AB 68), converting a garage into an ADU is legal and encouraged to help with the housing crisis.

Los Angeles Zoning & Regulations
Key regulations for ADUs and garage conversions in LA include:

  • Zoning: Most R1, R2, and multifamily zones allow ADUs.
  • Size Limits: Up to 1,200 sq ft for detached ADUs. Garage conversions can be the size of the existing garage.
  • Setbacks: Usually 4 feet from side and rear property lines for detached ADUs.
  • Parking: No replacement parking is required for a converted garage if the property is within half a mile of public transit (most of LA qualifies).
  • Permits: Required for all ADU construction and conversions. Plans must be submitted to the Los Angeles Department of Building and Safety (LADBS).

Costs & Financing
Garage conversion costs in Los Angeles typically range from $80,000 to $150,000, depending on materials, finishes, and structural changes. Detached ADUs may cost $150,000 to $350,000+.

Financing options include:

  • Home equity loans or HELOCs
  • Cash-out refinancing
  • Renovation loans (Fannie Mae HomeStyle, FHA 203(k))
  • Local incentive programs and grants (when available)

Benefits of Building an ADU or Converting a Garage

  • Rental Income: A well-located ADU can generate $1,500–$3,000/month.
  • Increased Property Value: ADUs often significantly boost property appraisals.
  • Flexible Living Space: Great for multi-generational living, guest space, or home office use.
  • Sustainability: Promotes infill development and more efficient land use.

Challenges to Consider

  • Upfront Costs: Requires significant investment before seeing returns.
  • Permit Delays: Although improved, city permitting can still be slow.
  • Construction Disruption: Living on-site during a garage conversion may be inconvenient.
  • Design Limitations: Garage size and layout may limit design options.

Conclusion
ADUs and garage conversions in Los Angeles represent a smart, legal, and potentially lucrative opportunity for homeowners. Whether you’re looking to generate income, add living space, or boost your property’s value, a garage conversion could be the most efficient path to get there.

Before beginning, it’s important to consult with an experienced contractor or ADU specialist, verify zoning requirements with LADBS, and understand the total costs and timelines involved.