Price & Affordability
Price and Affordability are much on our minds with the construction of the 2021 ADU Idea House. In our experience, most Concept Homes are generally just not affordable to the average American.
With the average median household income in America estimated at around $68,000 ($71,000 here in California), multi-million-dollar concept homes are not something achievable to the average home buyer. Yes, they are unique and stunning efforts, but for most individuals, they are like blockbuster movies; big exciting, visually appealing affairs with a vast cornucopia of images – stunning and impressive, but with visuals often lost after viewing.
Additionally, most consumers just can’t afford them, much less afford to pay the taxes required to maintain one of these residences.
The 2021 ADU Idea House was specifically built with consideration of affordability for the average homebuyer in mind.
The target construction costs for both homes (the older primary residence being renovated with new internal JADU as well as the new high-end detached ADU unit to be built on the property) will each be closer to the market value of an average home in the middle-income neighborhood and older side of town.
Additionally, while there are cost considerations with any type of new construction, it should be remembered that the primary home, JADU, and ADU together technically have multiple residences and living/work spaces inside. They can easily house multiple families and occupants or even offset costs with rental and other income streams.
To provide even greater insight into costs and financing, rather than pay cash for the home and its renovation, ADU Magazine staff went through the entire process of financing the residence and then obtaining a construction loan just as a typical homeowner would do. While an often hair-pulling experience during the COVID crisis and economic downturn, this allowed us to provide invaluable feedback and insight to those seeking to purchase an older home in need of remodeling as well as financing a JADU and ADU.
NOTABLE DISTINCTIONS >> ENERGY EFFICIENCY / SUSTAINABILITY