While we have put forth every effort to design an affordable small home, the final pricing is determined by your General Contractor based on various factors such as material price, construction labor, site conditions, utility connections, inflation, and GC factors like their current project load, GC profit and overhead, and market volatility.
As of January 2024, the estimated cost to build an ADU in Raleigh, North Carolina ranges from $240 to $350 per square foot. In other jurisdictions, construction costs can escalate to $500 per square foot. Considering the construction escalation due to market volatility, we strongly advise bringing on a general contractor early for current construction estimates.
Each contractor and subcontractor may price a project differently. We recommend obtaining estimates from at least three different contractors for comparison. Keep in mind that ADUs typically cost more per square foot than regular-sized homes due to economies of scale. With smaller square footage, the same amount of labor needs to be distributed over a smaller area, making small homes comparatively more expensive on a per-square-foot basis (but not overall).
Recently, we’ve observed a variability of 25-40% among contractors in some cases. Stressing the importance of speaking with multiple contractors cannot be overstated.