What drives the complete budget of an ADU
Two casitas of the same size can cost very different amounts. The difference is almost never the finishes. It is the ground, the utilities and the city. Here is the whole budget, bucket by bucket, so you can read any quote with confidence.
The five buckets
Every ADU estimate we write breaks down into the same five parts. When you compare bids, make sure each one covers all five; a low number that leaves out utilities or permits is not a low number.
| Bucket | What it covers | What moves it |
|---|---|---|
| Design, engineering and permits | Plans, structural engineering where required, energy calculations, permit application and plan-review fees, inspections. | New structure versus conversion; Whether the city requires engineering for your roof or foundation; Plan revisions and review rounds |
| Building construction and finishes | Foundation or slab work, framing, roofing, insulation, drywall, doors and windows, flooring, cabinets, counters, fixtures, paint. | Square footage; Finish level: builder-grade to custom; Wet rooms: a full kitchen and bath cost more than a kitchenette |
| Site preparation and access | Demolition, grading, removing concrete or landscaping, protecting the existing home, getting equipment into the yard. | Where the unit sits on the lot; Side-yard access for equipment; Existing slabs, trees, walls or pools in the way |
| Utility connections or upgrades | Electrical panel capacity or a sub-panel, trenching for water and sewer, gas, HVAC (usually a mini-split). | Distance from the unit to the main panel and sewer line; Age and size of the existing panel; Septic versus city sewer |
| Optional features and contingency | Covered patio, laundry, upgraded appliances, solar readiness, and a reserve for what opens up once walls come down. | Your wish list; Age of the existing structure for conversions |
Why utilities and site work decide the budget
A new unit needs power, water, sewer and usually gas or an all-electric design. If your panel is already at capacity, the unit needs a panel upgrade or a sub-panel. If the sewer line is on the far side of the house, the trench runs further. On a septic lot, the system may need review. None of this shows up in a square-foot price, which is why we check it before quoting.
Site work is the second surprise. Equipment has to reach the build area. Old slabs, mature trees, block walls and pools can all be in the way, and a sloped yard changes the foundation.
Conversions versus new structures
A garage conversion skips the foundation, framing and roof, which are large line items on a detached unit. It adds its own items: correcting slab height or drainage, insulating walls that were never meant to be living space, and closing the garage door opening. It is usually the least expensive path to a livable unit, but it is not free of structure work.
An attached addition sits in the middle. It shares a wall and often utilities with the house, so trenching is short, but it ties into the existing roof and structure, so engineering matters more.
Size and finish level
Size matters, but less than people expect, because kitchens and bathrooms cost roughly the same whether the unit is 400 or 700 square feet. The wet rooms are the expensive rooms. A kitchenette instead of a full kitchen is the single biggest optional saving on most units.
What our estimates include
- Permit management from application to final inspection
- Licensed trades for electrical, plumbing and HVAC
- A written scope with no hidden allowances (see our FAQ)
- One-year workmanship warranty, with manufacturer warranties passed through
- Furniture, appliances unless listed in the scope
- Impact fees or utility-company charges set by the city or provider
- Landscaping beyond what the build disturbs
- Financing costs
Why there are no prices here
How to read a casita quote
- Ask which of the five buckets each line belongs to. If one bucket is missing, ask why.
- Ask whether permit fees, plan review and engineering are inside the number or "to be determined".
- Ask what happens if the panel needs an upgrade or the sewer tie-in runs long. A good quote says who carries that risk.
- Ask for the contingency as a separate line, and what triggers using it.
- Ask for the warranty in writing.
- How much value will an ADU add? The property-value analysis →
- Why casitas make sense now: the 2024 law →
- The math: resale price per foot vs. cost to build →
- Rental math: rent, yield and lender rules →
- How appraisers value a casita →
- Target areas: where a new casita clears its cost →
- Which Valley cities the law covers →
- Garage conversion guide →
- Property feasibility guide →
- ADU financing guide →
City rules: Phoenix · Mesa · Chandler · Gilbert · Scottsdale · Tempe · Glendale · Peoria · Surprise · Goodyear · Buckeye
Related services: Home remodeling in Phoenix · General contractor in Phoenix
Back to ADUs & Casitas.
Find out what your property can hold.
Send the address and your goal. Anthony Alexander Lopez or Juan M Lopez Solano will review zoning, setbacks and utilities and reach out within one business day. No obligation, and no city approval implied: it is our professional read of your lot.
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