Should I Add an ADU to My Home in St. George?

Adding an Accessory Dwelling Unit (ADU) to an existing property is a major trend across the nation, especially in growing markets like St. George real estate. It comes with a long list of benefits, but because it's a major investment and undertaking you might have some questions first. We can help you decide if it's worth the investment, keeping both your current life and future resale potential in mind. Here's what you need to consider. 

Benefits of Adding an ADU

Increased Property Value

One of the primary benefits of adding an ADU is the potential increase in property value. ADUs can make your property more attractive to future buyers, particularly those looking for multi-generational living options, rental income, or additional space for guests. If the ADU is constructed according to building code, it can really boost your home's value.

Additional Streams of Income

An ADU can serve as a rental unit, providing a steady income stream. Renting out an ADU can be highly profitable in St. George, whether you're looking to rent to college students or you set up a short term rental for tourists ready to explore the area's abundant outdoor recreation. Long-term rentals can offer stable income, while short-term rentals through platforms like Airbnb can generate higher, albeit more variable, returns. Many homeowners are able to fully offset the investment through rental income, ultimately making money on the investment within a relatively short period of time.

Flexible Square Footage

ADUs provide flexible living arrangements that can accommodate various family needs. They can house aging parents, adult children, or guests. The space can be easily adapted to meet different needs as they arise.

Work from Home Potential

With the rise of remote work, having a dedicated workspace has become crucial. Many people can create an office space in the home, but for some households this isn't the right fit. Maybe you need a quieter space than is realistic with kids in the house, or maybe you are craving a separate space that prevents you from getting distracted in your own home. An ADU can serve as a home office, studio, or creative space, providing a quiet and separate area to focus on work.

Sustainability

An ADU is one of the most sustainable ways to add on to your home. ADUs promote efficient land use and sustainability by utilizing existing residential lots for additional housing. The impact of building an ADU is significantly less than the environmental impact associated with new developments.

How will an ADU impact my home's resale value?

An ADU does require a significant investment. Some homeowners decide to fund the build through a refinance or a home equity loan, while others might have cash on hand to pay for it. However you finance the project, you'll want to know that the ROI is there when it's time to sell or refinance in the future. 

Adding an ADU can significantly enhance the resale value of your property. Properties with ADUs are attractive to a broader range of buyers due to the flexibility and additional income potential they offer. However, the extent of the value increase can depend on several factors, including:

• Quality of Construction: High-quality, well-designed ADUs that match or complement the main house tend to add more value.
• Local Market Conditions: In a desirable market like St. George, where housing demand is high, properties with ADUs can command a premium.
• Regulatory Environment: Compliance with local zoning laws and building codes is crucial. Legal ADUs that meet all regulations are more valuable than unpermitted units.

Real estate expert Phyllis Malcom with Horseshoe Bay Resort Sales Company emphasized the importance of making sure the ADU is correctly constructed:

Are you curious about the current value of your home in St. George? We can help with a free market analysis, or any other insight into selling your St. George home, so contact us any time to learn more.