ADU vs Addition: Cost, Time & ROI Compared

When you need more space in your home, you start exploring your options, and naturally, you'll come across ADUs and additions. Although they both offer more space for your home, they are different. An ADU is an independent living space that is separate from your primary dwelling. In contrast, an addition is an extra room or expansion of an existing room that is added to your primary residence. 

Both options have their positives and drawbacks, so it's understandable that you might be finding it difficult to choose between the two. But that's where we come in. Our team at SmartSpaces ADUs has shared everything you need to know about an ADU vs. a home addition, including cost, time, and ROI so that you can compare the two and come to a decision.

Cost: How Much Will You Spend?

When you begin exploring an ADU vs room addition, you'll likely want to know the cost differences between the two. We understand that costs play a significant role in your making a final decision between an ADU or home addition in Atlanta, GA. 

However, to understand the cost differences and why they might vary, you need to know that pricing will depend on what's included in each project. 

At SmartSpaces, our ADUs are fully self-contained. They include a kitchen, bathroom, electrical system, water heater, mini-split HVAC system, and premium finishes throughout. A studio unit starts at $75,000, while one- and two-bedroom units start at $125,000 and $175,000, respectively. Additionally, our garage conversions typically cost less than detached new builds.

On the other hand, a traditional home addition cost can vary dramatically depending on the scope. For example, a small bedroom or office typically costs less than building an ADU with a small bathroom, usually costing between $15,000 and $30,000, and a home office between $15,000 and $25,000. 

This is a significant price difference, but you have to remember that ADUs are usually self-contained with bedrooms, bathrooms, and kitchens, while additions generally only expand square footage and give you more space. 

You should also know that with additions that involve plumbing, kitchens, or structural tie-ins, they can reach similar costs to ADUs. Because the structure connects directly to your existing home, this often also requires foundation adjustments and utility integration, adding to costs. 

So when you're looking into an ADU vs extension cost, keep this in mind as there's a strong likelihood an ADU might serve your purposes better cost-wise. 

Time: Which is Faster?

When comparing the pros and cons of an ADU and addition, you also need to look at timelines. We've found that when putting ADU time vs addition time in Atlanta, GA, side-by-side additions generally finish faster. 

A room addition can be completed in three to six months, depending on complexity and permitting. ADUs involve more steps, including separate utility planning and stricter zoning reviews, so they will often take longer, but this isn't always the case. At SmartSpaces, the average ADU project with us follows this five-step process:

1. Onboarding (2 to 3 business days)
2. Design (1 month)
3. Permitting (1 to 2 months)
4. Construction (2 to 4 months)
5. Completion and final walkthrough (One day)

With the above in mind, ADUs can take up to 12 months, especially if you're building a new detached structure. Conversions are quicker but still involve permitting and finishing work. 

However, although the timeline for an ADU is usually longer, the payoff is generally greater.

Since you're choosing between an ADU or a home addition in Atlanta, and the timeline may play a major role in your decision, keep in mind what we've said when making your decision. Then, consider speaking to an ADU contractor in Atlanta, GA, like us, to learn more about timelines.

Addition and ADU Return on Investment: What Do You Get Back?

If you're asking what's the return on investment for an ADU and an addition, you're not alone. Home addition ROI vs ADU ROI is very different. 

Atlanta homeowners increasingly view ADUs as long-term financial tools. Adding an ADU can raise property value by 20 to 30 percent. National averages show that ADUs recoup between 70 and 120 percent of their cost in resale value. Plus, when rented out, they can generate steady income, often between $1,200 and $2,000 per month, depending on unit size and location.

In contrast, a home addition provides value through expanded square footage but no rental income. Depending on the project, additions return 50 to 80 percent of their cost at resale. A bedroom or office typically brings lower returns than a bathroom or kitchen.

So, when comparing home addition ROI vs ADU ROI, ADUs come out ahead for long-term value, especially if you plan to rent the space.

ADU vs Remodel Use Cases: Which Option Fits Your Lifestyle?

Both options serve different needs, which is why so many homeowners ask: Is a home addition or ADU a better choice? 

Now that you know the timeline, cost, and return on investment insights on ADUs and additions, you can explore which is truly best. Below, we've helped you narrow down your ADU vs expansion choices by sharing which is best for whom:

Choose an ADU if you want:

• A private space for renters, family, or guests.
• Long-term rental income.
• Greater resale value.
• Flexibility for aging parents or returning college students.

Choose a home addition if you want:

• Quicker expansion of shared living space.
• A project with fewer zoning restrictions.
• Seamless integration with your existing home.

Is an ADU Better Than an Addition? Smart Spaces ADUs Can Help With Your Next Project

We hope that you now have a better understanding of SmartSpaces ADUs vs. addition projects and why an ADU could be the better choice for your needs. However, we know that the final decision will depend on your use case, budget, timeline, and expectations. 

But if you're ready to commit to an ADU or if you want to learn more about why it could be the right choice, you can speak with our team. At SmartSpaces ADUs, we've often helped clients decide between an ADU vs an addition in Atlanta, GA, and then bring their dream vision to life. We can help you, too, and would be honored to discuss your ideas in the near future.