California’s ADU Boom
California’s housing crisis has given rise to the ADU revolution. From backyard cottages to converted garages, Accessory Dwelling Units are helping homeowners unlock extra space and rental income. But where do modular homes fit into this picture?
What’s an ADU?
An ADU is a secondary unit on a property—often a small home in the backyard or above a garage. California has recently passed laws making ADUs easier to build, especially in urban areas.
What’s a Modular Home?
A modular home is a full residence built in a factory and installed on-site. It can be a primary home, a vacation property, or even an ADU itself (yes, modular ADUs exist).
Cost Comparison
• ADUs in California: Small studio ADUs often start around $150,000+.
• Modular homes: Pricing starts at $290–$350 per sq. ft., offering more design flexibility and often larger living spaces than a typical ADU.
Financing and Resale
ADUs can add property value and rental income potential, but financing is sometimes limited to home equity loans.
Modular homes qualify for broader financing, including traditional mortgages, because they’re built to state housing codes.
Which Should You Choose?
If you already own land and just want to add a rental unit or in-law suite, an ADU makes sense. But if you’re looking for a primary residence—or want something more customizable—a modular home is the stronger choice.
👉 Not sure which path is right for you? Get started with MEKA Modular today.
