In L.A.’s tough housing market, cramped family adds ADU rather than move (2024)

When Serban and Laura Gudino-Penciu purchased a 900-square-foot bungalow in Eagle Rock in 2004, it was just the two of them.

The Pencius’ 1924 house is on a charming street filled with 100-year-old homes and walking distance to stores and restaurants. But after the birth of their two sons, who are now 12 and 15, and Serban’s transition to entrepreneurial freelance work from a corporate job, the family of four needed more live-work space.

“As the kids were getting older, we wanted another bathroom and some communal space, but also space for them to lounge around and not have us hover over them,” says Laura, who works in sales for a pharmaceutical company. “But we didn’t want so much space that we wouldn’t be around each other. We didn’t want to disconnect.”

In L.A.’s tough housing market, cramped family adds ADU rather than move (1)

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In L.A.’s tough housing market, cramped family adds ADU rather than move (2)

A one-car garage in Eagle Rock before its conversion into an ADU.

(Alex Solbes)

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In L.A.’s tough housing market, cramped family adds ADU rather than move (3)

Today, the converted garage opens to the pool area and includes attached storage at left.

Though laws have made obtaining permits to build accessory dwelling units easier in California, the couple was shocked at bids of more than $150,000 when they looked into converting their one-car garage into an ADU in 2020.

Architect Alex Solbes, who offered a bid, isn’t surprised. “I’ve had a lot of interest in ADUs, and people have this perception that they are less costly, and they really aren’t,” he says. “Construction costs went up during the pandemic, and they are still high. I think it’s the new normal. People need to realize they are still building a structure.”

In L.A.’s tough housing market, cramped family adds ADU rather than move (4)

Serban and Laura Gudino-Penciu’s 1924 bungalow before it was remodeled and expanded.

(Alex Solbes)

In L.A.’s tough housing market, cramped family adds ADU rather than move (5)

Bifolding doors open to allow a greater connection to the outdoors.

So the couple decided to do what many people with starter homes do: sell their home and move to a larger one in their neighborhood.

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But their house hunt didn’t work out quite as planned.

The neighborhood had changed dramatically in the 15 years since they purchased their two-bedroom home for $385,000. “It’s unattainable,” Serban says of finding a place in Los Angeles, where the average price for a typical home is about $973,000, according to Zillow. “We were in a situation where we would have to spend a million dollars on a house that needed work.”

“We kept getting outbid and priced out,” adds Laura. “We decided to go back to the drawing board.”

In L.A.’s tough housing market, cramped family adds ADU rather than move (6)

The traditional front of the bungalow contrasts with the contemporary addition in back.

(James Juarez / For The Times)

To help them expand their small floor plan and convert the garage into an ADU, the couple hired Solbes of AOS Works: Architecture & Design, who understood their desire to brighten the dark interiors and create family and work space.

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“Natural light was so important to us,” Laura says. “That was one of our most important parameters.”

Solbes ultimately added 740 square feet to the main house, including a new master bedroom with a bathroom and walk-in closet, laundry, family room, office and powder room — nearly doubling the home’s floor plan in the process. (The couple also remodeled the kitchen, living room, dining room, two bedrooms and bathroom to make it more family friendly.)

In L.A.’s tough housing market, cramped family adds ADU rather than move (8)

The family room just beyond the kitchen features full-height cabinetry on two sides with pocket doors that lead to an office and powder room.

Behind the house, the garage next to the existing swimming pool was converted into a 250-square-foot ADU so that Serban would have a place to work. The tiny ADU features a kitchen with apartment-size appliances (but no dishwasher), a bathroom and doors that open to the pool area, which make the space feel larger than it is.

To combat the loss of the garage, Solbes designed a storage area that is attached to the ADU and is accessible from the outside. Serban admits it was tough to give up the garage, even though there is room to park one car in the driveway. “We still haven’t gotten rid of everything that was in there,” he says.

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While the front of the house fits in with the other bungalows on the street, Solbes designed the back to be more contemporary, achieving the light and space the family wanted.

In L.A.’s tough housing market, cramped family adds ADU rather than move (9)

The 250-square foot studio ADU includes a kitchen and bath.

In L.A.’s tough housing market, cramped family adds ADU rather than move (10)
In L.A.’s tough housing market, cramped family adds ADU rather than move (11)

High windows bring in light and provide privacy, left. The bathroom of the ADU, right.

“The addition allowed us to have much higher ceiling heights and bi-folding doors that completely open up to allow a greater connection between the family room and the outdoors,” Solbes says.

In what the architect describes as “a shift,” the iconic California bungalow in front stretches into an entirely new form in the back. “There’s an evolution of form,” he says. “If you see these three masses, they are interlocking, but the family room’s high ceilings enhance the connection to the yard and allow light in — the traditional house in front challenges that.” The primary bedroom also opens out onto a deck further emphasizing the connection to the backyard.

As longtime residents of Eagle Rock, the couple felt it was important to preserve the front of their house and the character of their street. “We didn’t want a McMansion,” says Laura. “We just wanted a little more space and a home that fits in with the existing structures.”

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In L.A.’s tough housing market, cramped family adds ADU rather than move (12)

The cabinets in the family room and kitchen were finished with an environmentally friendly reconstituted wood veneer.

In L.A.’s tough housing market, cramped family adds ADU rather than move (13)

The fireplace tile in the living room is representative of the bungalow’s roots.

In L.A.’s tough housing market, cramped family adds ADU rather than move (14)

Bifolding doors in the master bedroom emphasizes the connection to the outdoors.

Thanks to the ADU’s smooth concrete floors, the family could easily use the structure as a pool house. But now that Serban runs his digital marketing company and a real estate investment firm from home, he uses the ADU as an office.

“I am always on calls and some of the videos are loud so I transitioned to the ADU,” he says. “It opens up, so we can do things as a family anytime we want, but most of the time, it’s my office. I can work at 1 in the morning and not wake anyone up.”

Sometimes, Laura says with a laugh, she has to text him “Dinner is ready.”

In L.A.’s tough housing market, cramped family adds ADU rather than move (15)

“Sometimes, I have to text him, ‘Dinner is ready,’” Laura laughs.

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Although Solbes and landscape designer Roy Altaras found it challenging to fit everything — including a new deck and firepit — on a standard-size lot with a swimming pool, the family is thrilled with the thoughtful transformation.

“We wanted a working backyard,” Laura says of their indoor-outdoor lifestyle. “We love the extra usable space. We spend a lot of time outdoors and the ADU falls in line with that. Sometimes, we watch games in the ADU. Or we can turn on the firepit. I hosted my book club on the deck recently. It’s all easily accessible from the main house.”

Omega Contractors finished the project in 2022 after 14 months of work. The cost of the ADU, not including appliances, fixtures and accessories (or the remodel to the main house) was about $175,000.

When asked how the addition and ADU have affected their family, Laura says it has “changed how we live.”

“The kids can have friends over, and we can hear what’s happening but give them their space,” Serban says. “They can have fun without feeling like their parents always watch them. It’s hard to do that in a small house.”

Laura agrees.

“This is now our forever home,” she says. “We have everything we need.”

In L.A.’s tough housing market, cramped family adds ADU rather than move (16)

The additions emphasize a connection to the outdoors.

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In L.A.’s tough housing market, cramped family adds ADU rather than move (2024)

FAQs

In L.A.’s tough housing market, cramped family adds ADU rather than move? ›

In L.A.'s tough housing market, cramped family adds ADU rather than move. Serban and Laura Gudino-Penciu chose to remodel their 900-square-foot bungalow and add an ADU rather than move to a larger house due to an expensive housing market.

Does adding ADU increase property value? ›

One study from Porch showed that in large cities, a property with an ADU is typically priced 35% higher than a home without an ADU. Constructing an ADU on your property typically increases the resale value of the property, since the house will be appraised with other homes with ADUs.

How much does it cost to build an ADU in Los Angeles? ›

ADU Building Costs Calculator in Los Angeles

Generally, you can estimate $300-$400 per square foot as a rough estimate for a new ADU in Los Angeles and Southern California. The wide range in price accounts for the differences in floorplan, materials, site conditions, and additional amenities between different ADUs.

Are ADUs under rent control in Los Angeles? ›

Whether the ADU is attached to your house is an important distinction in the city of Los Angeles. If you build an ADU in L.A. that's completely detached, it will be exempt from the local rent stabilization ordinance unless the ADU took the place of units that had been rent-controlled.

What is the size limit for an ADU in Los Angeles? ›

A new detached accessory unit is limited to 1,200 sf, while an addition attached to an existing home is limited to the lesser of either 1,200 sf or 50% of the size of the existing home.

Does ADU trigger reassessment? ›

The construction of an ADU does not trigger a complete reassessment of the value of your home. Instead, the county tax assessor will do a “blended assessment” of your property. In a “blended assessment”, the assessor simply estimates the value of the ADU, most likely based on the cost of building the ADU.

How much does an ADU increase property taxes in California? ›

Property tax rates on ADUs in California generally range from 1-1.5% of the construction cost. For example, if the construction cost of an ADU is $300K, you might expect to pay around $3,000 as additional property taxes per year.

What is the cheapest way to build an ADU in California? ›

The Cheapest Methods to Build an ADU in California

Garage Conversions: This is typically the most cost-effective option. On average, converting a garage into an ADU costs between $35,000 and $60,000.

How much is a 2 bedroom ADU in California? ›

TABLE: Cost To Build New Construction Detached ADU in San Diego, California
TypeSizeVertical Build Cost*
1BR/1BA500 sqft$235K
2BR/1BA750 sqft$275K
2BR/2BA1000 sqft$340K
3BR/2BA1200 sqft$360K

Do you need a permit to build an ADU in Los Angeles? ›

Both attached and detached ADUs in Los Angeles require permits regardless of whether you are converting an existing space or building from the ground up. You must submit a permit application if your project falls under any of the following categories: ADUs attached to single-family residences.

Can I airbnb my ADU in Los Angeles? ›

If you don't live on the property full-time, you're not eligible to rent your ADU out short-term. Any short-term rental must be registered with the City of Los Angeles.

How much owner occupancy is required for ADU in Los Angeles? ›

Owner occupancy refers to a requirement that if a homeowner builds an ADU, they must live on the property, either in the ADU or the main residence. The owner occupancy requirement has been permanently eliminated in California thanks to AB 976.

How much can you rent an ADU for in Los Angeles? ›

600-800sqft. 2-bedroom ADUs in Los Angeles that are over 600 square feet can rent for up to $4,500 in some areas such as Santa Monica, West Hollywood, Hollywood Hills, and Studio City. As you can see, if you have the space to build a larger ADU, you may generate more rental income.

How many bedrooms can an ADU have? ›

California state law does not allow a limit on the number of bedrooms in an ADU. Limiting the number of bedrooms can be considered discriminatory towards protected classes and impede the development of new ADUs. Local governments cannot adopt ordinances that impose bedroom limits for new ADUs.

Can my ADU be bigger than my house? ›

For attached ADUs, the square footage can never be more than 50% that of the main residence. For detached ADUs, if the planned size exceeds that of the primary dwelling, the ADU size is limited to a maximum of 800 square feet. This is one example of the complexity of the laws around how big an ADU can be in California.

What are the new laws for ADU in California in 2024? ›

Now, homeowners can build an ADU with a minimum size of 800 square feet and a maximum height of 16 feet, adhering to a 4-foot setback from side and rear yards. These changes significantly ease the process of ADU construction, allowing for more flexibility in design and placement on the property.

Is an ADU a good investment? ›

A 2021 Porch Survey found that in the Pacific region of the U.S., homes with an ADU see an average 35% increase in resale value over homes without an ADU. As a long-term investment, a housing option for you and your family, and a potential source of passive income, ADUs are hard to beat!

Does ADU count as square footage appraisal? ›

Does an ADU count as square footage? Yes, an ADU does count as additional livable square footage to the property.

Does converting garage to ADU add value? ›

When you convert your garage to an ADU, you increase the property value in most instances because you add habitable square footage to the overall property. And since single-family homes are appraised based on the home's characteristics and the useable square footage, the ADU will increase the property's value.

Can I write off the cost of building an ADU in California? ›

If you choose to run your small business out of your newly built accessory dwelling unit, you may be able to depreciate part of the construction of your ADU, as well as any work you put into the space (so long as it is related to your business).

References

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