ADU New Construction Cost (Charlotte)

ADU New Construction Cost (Charlotte)

Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes

Seeing as this is the New Construction forum and a lot of the questions are some version of “how much does it cost to build X” I thought I would share some real numbers and experience from a project we currently have under construction.

This project is an Accessory Dwelling - 720 sqft with one bedroom, one bathroom, a living room, kitchen and small laundry room plus a screened porch. It is located within a Historic District in Charlotte, NC. I designed this project for the homeowners and am overseeing contractor selection and management. The homeowners are going to move in once we are finished and rent out the primary house on this property, then switch in a few years and rent out the ADU.

First, here are the raw numbers:

  1. Foundation: $13,000
  2. Framing: $14,200
  3. Siding: $11,000
  4. Roofing: $4,750
  5. HVAC: $5,500
  6. Electrical: $4,800
  7. Plumbing: $7,500
  8. Insulation: $2,500
  9. Drywall: $8,000
  10. Paint: $5,200
  11. Flooring: $4,200
  12. Cabinets: $3,800
  13. Countertops: $3,000
  14. Appliances: $5,500
  15. Misc #1: $36,600 (labor/materials by GC)
  16. Doors, Windows, Trim, Cabinet and Hardware Install, Screened Porch, Fence, Landscaping, Dumpster, Project Management Fee
  17. Misc #2: $8,000 (supplied by Designer/Me)
  18. Fixtures, Hardware, Shower Door, Wardrobe Cabinet, Tree Removal, Construction Administration
  19. Design Fees: $3,650

That combines for a total cost of $141,200. For what it’s worth, we had multiple contractors price this project and they came in fairly close to one another. We went with the one I had worked with the most and brought the higher confidence level.

Charlotte is hot with new construction, and has been for a while. It was very difficult to get many of our regular subcontractors to even bid the project, let alone give a price anywhere near reasonable. Simply put, very few around here need the work, especially something considered small. There are several trades and line items we consider too high, but we could not get any reliable alternatives. Another factor was the tariffs that went into effect.

Now, I have a spec house project I designed near Raleigh that is three times the size of this one and is being built for less than half the price per sqft. One of the reasons for the cost discrepancy is that the owner/investor for that project also has their contractors license and has no need to hire a builder to pull permits and manage the project. Another factor is that the price per sqft actually goes up when you build smaller, as you still have the big-ticket items that cost more. A house with more sqft is primarily more bedrooms and larger living spaces, these cost less to build. The Raleigh project also began construction six months before this Accessory Dwelling and did not have the full brunt of the tariffs the ADU did.

This isn’t a marketing post, so I won’t get into the pros and cons of hiring a designer versus buying house plans online. But I will say that it was a significant difference on a project like this, and has saved the homeowners quite a bit of money in avoiding or negating potential change orders, especially since construction began.

I hope some of you find this helpful. I will post some photos of the project below and update as we complete construction. Please don’t hesitate to reach out with any questions you have. I love to help when I can and to learn from all of you as well.

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Rental Property Investor · Knightdale, NC · Member since 2016 · 30 posts · 23 votes
6y

@Joshua Stewart Well dare I ask if this was completed and rented out? A lot of us here in the Raleigh are considering this in the future if the ordinances ever pass. Would love to know what the final outcome was!

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  • Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
    6y

    Just curious what the cost for permits, tap fees, etc., were and if these are incorporated into the numbers you posted? 

  • Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes
    6y

    Yes, those costs are incorporated into specific line items such as Misc GC items, plumbing, etc... We did not have to pay fees for Historic District review. An ADU is staff-level approval so there was no requirement to present to the commission. I am doing a new construction in the same neighborhood that is single-family which is $1,100 +/- to the Historic District.

  • Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
    6y

    @Joshua Stewart  Thanks for the write up, I am sure it will be very helpful for a lot of people.  I agree that the $/ft2 goes up as the total size of the project goes down.

    Based your numbers, it is clear to me that this is not a basic rental, but more a bit on the higher end. 

    For example;

    Appliances - a four piece SS Frigidaire kitchen package should be $2k or less, add another $1.2k for the washer/dryer and your at $3,200.  Your project as $5,500.  That's a nice appliance package.

    Cabinets/Countertop - Your units cost $6800 for both.  On a recent project I have under construction, using Chinese white shaker plywood cabinets with prefab quartz countertop, total cost was $4235 (installed).  I would definetly not say what I use is basic or super budget minded, but nice quality.  Mine is a decent size kitchen with eat in peninsula for a 600ft apartment.

    I am glad that I am not in your market, otherwise I could not build using your costs.  Heck, in my area, some of my costs are half of yours (1588ft house, drywall =  $5827, roof = $4170).

    I assume that this is not fully built, just bid? What does your client expect the ADU to rent for once they move out?

  • Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes
    6y

    @Mike Wood Yes some of those prices we are paying are more than I would typically expect, and some a lot more. This project is what I would consider average on finish selections, though it is customized since the investors/clients will live in it at first... I am not sure what they plan to rent it for ultimately, as that is a few years away... Construction began in mid September; framing is nearly done.

  • Lititz, PA · Member since 2013 · 595 posts · 272 votes
    6y

    @Joshua Stewart  Thanks for such an informative cost breakdown for the cost to build this small structure.  Throughout the process, What ideas have you learned for how costs be reduced on this?

    Thanks

  • Rental Property Investor · Wichita Falls, TX · Member since 2017 · 51 posts · 11 votes
    6y

    @Mike Wood thanks for weighing in on this post. Can you give me more details on your source for prefab quartz countertops?

  • Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
    6y

    @Brady Beshear  I purchase my cabinets and countertops from a local cabinet shop that imports them from China.  His shop is a no frills kinda place, and the prices are the best in town (there are others that are similar in cost, but I have used him on almost all of my builds). 

    The prefab slabs come in 110in x 26in or 36in widths (36in width is used for islands and peninsulas). They do the complete installation onsite, they just shown up with the slabs and sink.  I have done my own installation one (1) time using prefab granite slabs (purchased from Floor & Decor) and did save alot of money, but it took two full days for me and my wife to do the installation (the undermount sink took forever to cut and polish).  After that, I decided it was not worth my time to do that. 

    I pay per piece of prefab slab, per piece of back splash and the sink.  They charge for labor. On one of my current builds, the quartz countertop for one kitchen was $980 for materials (slab, 4" back splash & sink) and $660 for labor, for 30.83ft2 of countertop (35.24ft2 w/ back splash).

  • Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes
    6y

    @William Coet There are a couple of things that jump out from this project on reducing costs...

    For one, I designed a detailed set of house plans early on so that we had clear definition on what we wanted (and didn't want). This has been highly valuable in the past 4-5 weeks since construction began, because the GC and subs have tried multiple times to charge for change orders and I was able to point them to a specific sheet or note on the drawings that shows it is something we called for and defined when they bid the project. Oversight on their part during bidding is their fault, not ours and the homeowners shouldn't have to pay for it... Had the homeowners bought a stock house plan online they probably would have saved a couple thousand dollars up front, but they would have paid 3-4 times that already in change orders.

    Also, one of the ways we have saved costs is by me as the designer sourcing and providing some of the finishes. I'm not charging 15-20% (or more) markups to buy materials. On future projects I plan to do much more of this.

    One other thing is I pushed back at the GC on some of his trade pricing. We had a sit down several times and went line by line, and I wasn't afraid to tell him "that's way too high, especially for a project like this, here's what we expect." For instance, his original cabinets + countertops price was over $16k and his paint price was $9k. That's over 10% of the total build cost we knocked off just with those two line items.

  • Rental Property Investor · Wichita Falls, TX · Member since 2017 · 51 posts · 11 votes
    6y

    @Mike Wood - Thanks for the details. I need to find a similar, local source!  

  • Charlotte, NC · Member since 2019 · 22 posts · 5 votes
    6y

    Do you have any new photos to post? I just bought a house in Noda in Charlotte, and I want to convert the detached garage to an ADU.

  • Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes
    6y

    Yes, we are actually finished with drywall and the cabinets and countertops are all in. Starting paint, flooring and tile this week. Looking to be finished before Christmas. Here is a pic that is a few weeks old, I've forgotten to take more the last few times I have been on site... If you have any questions or need any help with your project in NoDa, feel free to reach out to me.

  • Rental Property Investor · Knightdale, NC · Member since 2016 · 30 posts · 23 votes
    6y

    @Joshua Stewart Well dare I ask if this was completed and rented out? A lot of us here in the Raleigh are considering this in the future if the ordinances ever pass. Would love to know what the final outcome was!

  • Investor · Morrisville, NC · Member since 2012 · 1k+ posts · 673 votes
    6y

    @Joshua Stewart Great thread. I'm in the Raleigh/Durham market and just acquired some land at pretty reasonable price. I'm considering building and this thread gives me a good idea on what to estimate in terms of costs. Where did you get your plans from?

  • Specialist · Charlotte NC · Member since 2017 · 109 posts · 48 votes
    5y

    Sorry for the delayed replies, I haven't been on BP in a while...

    @Chris Hall yes, we completed about exactly a year ago. The homeowners moved into the ADU and rented out the main house.

    @Henri Meli I am a Designer, so I created the custom house plans for the homeowners.

  • Member since 2021 · 2 posts · 1 vote
    5y

    Ok, I'll bite!  I'm Andy and discovered ADUs in 2012 when Charlotte first started to allow them.  Since then, I've built two ADUs.  One is a two bed one bath 720 square foot attached unit which cost me $74,000 to build in 2014.  It's pretty similar to this unit although the outside covered area is a small veranda as opposed to a screened in patio.  I guess to be fair, I had my GC built the first unit way before the pandemic but I paid almost half of the cost of this.  I also built an 800 square foot three bed two bath with custom tile baths and a custom shower and was still under $88

    ,000.  That one was built in 2018 from a design I made with the assistance of the same architect who built my first one.  Not trying to knock anybody here but if you plan to rent these things (as I do) you largely want builder grade with some upgrades in the kitchen (appliances mostly.)  We rent them from $75 to $100 a night and are always booked.  If you'd like to see pics of the spaces and video walk through, I welcome you to visit our website at www.charlotteforless.com!

  • Realtor · Charlotte, NC · Member since 2014 · 935 posts · 467 votes
    5y

    @Joshua Stewart just saw this Post. I'm also from Pensacola and live in Charlotte. I did an ADU in Windsor Park with an investor client a few years ago and it was a huge hit

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