Building an Accessory Dwelling Unit: A Smart and Practical Solution for Modern Living
Introduction: Why We Built an ADU
In 2019, just before the COVID-19 pandemic disrupted our lives, my team and I at Salient, a PR agency specializing in tech startups, had already embraced a mostly remote work setup. Many of us, including freelancers, were working from home or shared office spaces like WeWork. My wife and I saw an opportunity to make the most of our property and decided to build a dedicated home office. Our home, located on a quarter-acre lot within Austin city limits, had a small main house of about 1,200 square feet and a large, undeveloped backyard with a farmhouse shed. We decided to add an accessory dwelling unit (ADU) to our backyard, a decision that turned out to be one of the best we ever made.
The Construction Process: Simple and Efficient
The ADU we built is just under 200 square feet and cost $32,542, which covered the products, shipping, and installation. Considering the prices have since increased, we were fortunate to take advantage of a sale and a 10% discount at the time. The total project cost, including site preparation and other finishes, came to around $41,500. The construction process was straightforward and fast. We opted for a prefabricated option from Studio Shed, a Denver-based company that builds the structure in their warehouse and ships it to be assembled on-site. The process was as simple as building with Lego bricks or designing a car. We picked our model, customized the size, ceilings, windows, and upgrades, and selected everything online, just like ordering on Amazon, with the price immediately available.
Before the ADU arrived, I cleared the site and poured a concrete pad, which cost about $1,500. When the ADU was delivered, I paid a few thousand dollars extra for the contractors to assemble the structure. The walls, windows, and roof were up in just two days. After that, a local handyman and I worked on the finishing touches, including installing flooring, painting, adding door handles, and handling electrical work. Since the ADU was too far from the main house to connect to our central AC, I also added a mini-split system that I purchased for $600 and paid about $500 to install. Everything was built and finished quickly. The ADU was delivered on February 1, 2021, and completed by the end of the month.
The Impact on Our Family Life
The ADU has been a game changer for our family of four. Working from the ADU has been fantastic—it’s allowed me some much-needed quiet time. With two young children, I can "go to work" without being in the main house, where chaos and noise are inevitable. It’s truly been a lifesaver. Beyond avoiding interruptions, there are times when I need real focus, especially for creative tasks. Having a quiet space feels like a complete escape from the constant background noise of daily life. The ADU has made it possible for us to live more comfortably in a smaller house. While we’d love a bigger home, the high cost of real estate in Austin makes it challenging. When we bought our home in 2020 for around $450,000, we locked in a 2.5% interest rate. Today, with home prices in desirable areas reaching $1.5 million and high property taxes, it’s not feasible for us to move without significantly increasing our housing costs. For now, we’re happy with our home and may add a bathroom one day.
The Value Added to Our Property
When we asked our real estate agent for an estimate, she said our home could be worth $750,000 today. The median home price in Austin has increased by 12.8% since 2020, according to Redfin. The ADU has undoubtedly boosted our home’s value, making it a smart investment. The ADU is not only functional but also beautiful. It’s the most beautiful room on the property, with super-tall, dramatic ceilings and a massive wall of windows. We also built a fire pit in front, which has become a focal point and a great spot for relaxation. The ADU is just steps from the main house but isolated enough to provide peace and solitude. It’s the perfect blend of proximity and separation.
The Growing Popularity of ADUs in Austin
Austin is facing a housing crisis, yet people continue to move to the city, making creative solutions like ADUs necessary. Over the past few years, the city has made it much easier to add ADUs to properties, especially those under 200 square feet. Historically, building an ADU required a permit and could involve dividing your property into two lots, but now you can simply add a small structure in your backyard without needing a permit. While some may have concerns about homes being closer together, I believe this is the best solution for making it easier for people to build ADUs and own homes—and it’s working well. ADUs are becoming increasingly popular in Austin, and for good reason. They offer a practical and affordable way to expand your living space or create a dedicated workspace, all while increasing your property’s value.
Conclusion: A Game Changer for Modern Living
In today’s world, there’s so much background noise, whether you’re at the office or working remotely, making it hard to focus and be creative. You can try blocking it out with headphones, but there’s a big difference between that and being in a truly quiet space. The ADU has been a game changer for me and my family. It’s allowed me to work effectively, provided a peaceful getaway from the chaos of daily life, and added significant value to our home. It’s a testament to how creative solutions like ADUs can help address the challenges of modern living. Whether you’re looking for a dedicated workspace, an extra bedroom, or a rental income source, an ADU is a smart and practical solution worth considering.
