The cost to build a 500 sq ft accessory dwelling unit (ADU) like the Olive in San Diego typically ranges from $160,000 to $220,000 for a full turnkey project. This estimate covers everything from design and permitting to construction and interior finishes. Working with a floor plan expert ensures your project is designed with efficient layouts that maximize every inch of space, which can help control costs. Factors like property constraints—such as lot size, topography, and utility access—can also affect the final price, so personalized planning is key to achieving the best outcome within your budget.

Yes. Detached accessory dwelling units (ADUs) up to 800 sq ft, no taller than 16 ft, and meeting 4-foot side and rear setbacks, are exempt from lot coverage, FAR, and open-space limits. At 500 sq ft, the Olive also qualifies for an impact fee waiver (which applies to units ≤750 sq ft). Smaller ADUs typically benefit from simpler permitting and lower overall cost factors, making them ideal for maximizing property potential.

Absolutely! The Olive ADU is excellent for generating rental income through long-term housing (rentals of 30 days or more). Its open-concept living area, full kitchen, and private bedroom make it highly attractive to tenants. Short-term rentals (less than 30 days) may be allowed but require compliance with San Diego’s short-term rental licensing or the County’s Transient Occupancy Tax (TOT) regulations.

Yes, when thoughtfully designed. The Olive, a modern one-bedroom ADU, includes a private bedroom, walk-in closet, full kitchen, open living/dining area, full bathroom, and in-unit laundry—all comfortably within 500 sq ft. Its efficient layout and custom features create surprisingly spacious and functional living.

From the initial design meeting to final inspection, building a 500 sq ft ADU like the Olive typically takes 6–9 months. This timeline includes working with the planning office for approvals, navigating permit fees, and coordinating each phase—design, permitting, construction, and final finishes. Because of the limited space, thoughtful design choices are crucial to maximize essential features like a private bedroom, full kitchen, and open living area. Whether you select from standard or semi-custom options, the Olive is an ideal choice for homeowners seeking a fast, efficient way to expand their living space without compromising quality.

Not necessarily. A major advantage of the Olive’s compact 500 sq ft floor plan is its suitability for smaller or irregular lots. Its modest size allows easy placement on most properties without extensive yard space. As long as your lot meets basic zoning and building permit requirements, adding this ADU is straightforward and space-efficient.

While pre-approved ADU plans can speed up the permitting process, custom floor plan designs offer far greater flexibility, personalization, and long-term value. If you're creating a secondary living space for long-term housing, smart planning is essential to ensure the ADU fits your lifestyle needs without compromise. A custom plan allows you to maximize functionality and comfort, whereas standard and semi-custom options may force you to settle on layouts that aren’t ideal. For homeowners investing in a popular choice like the Olive, custom design ensures every inch of the space works beautifully for today—and for years to come.

A 500 sq ft ADU like the Olive is ideal for homeowners looking to maximize space efficiency while creating meaningful livable space. This floor plan is perfect for extended family accommodations, such as aging parents or adult children, providing independence with proximity. It’s also an excellent choice for generating additional income through long-term or short-term rentals. For those looking to downsize without sacrificing comfort, the Olive offers a smart solution with a manageable financial commitment. Its flexible design means it can evolve with your needs over time—whether as a guest suite, home office, or rental unit.

In most cases, a 500-square-foot space like the Olive does not require fire sprinklers unless your primary home already has them installed. When it comes to utilities, smaller ADUs often connect to the existing systems without the need for expensive upgrades. However, actual costs can vary depending on your property’s current infrastructure, utility capacity, and site conditions. A proper site evaluation early in the process will give you a clear understanding of any necessary improvements and help avoid unexpected expenses.

Yes, financing a 500-square-foot space like the Olive is very possible, and often an affordable option for many homeowners. Common financing methods include HELOCs (Home Equity Lines of Credit), renovation loans, and specialized ADU financing programs designed to support smaller builds. Investing in an ADU can also quickly pay off by generating extra income through long-term or short-term rentals. Our team can guide you through the best financing options to match your budget, goals, and timeline.

Building a 500 sq ft ADU in California typically costs between $160,000 and $250,000, depending on location, site conditions, finishes, and whether the ADU is detached or attached. This estimate includes design, permitting, site prep, construction, and interior finishes. Coastal cities like San Diego and Los Angeles may skew toward the higher end due to labor and material costs. Smaller ADUs, like a 500 sq ft unit, often qualify for fee reductions or waivers (such as lower impact fees), slightly improving overall affordability compared to larger builds.

In California, the minimum size for an ADU is 150 square feet, based on statewide standards aligned with building codes for efficiency dwelling units. However, local jurisdictions can influence minimum sizes slightly based on zoning regulations or fire safety requirements. Most commonly, even the smallest ADUs must include basic living necessities—sleeping, cooking, and sanitation facilities—to meet building and health codes.

Generally, building an attached addition is cheaper per square foot than constructing a detached ADU, because additions share structural elements like foundations and utilities with the main home. However, an ADU often brings more value because it counts as a separate, rentable living unit and can generate independent income or provide housing flexibility (like for aging family members or tenants). Detached ADUs also offer privacy and independence that additions usually can't, making them a strategic investment despite the slightly higher upfront cost.

A 500 sq ft tiny house is incredibly versatile and works well as a long-term rental, short-term vacation rental (like Airbnb), housing for aging parents or adult children, a private guest house, or a remote home office/studio. The space is just large enough to comfortably support independent living, including a bedroom, full bath, kitchen, and living area, without feeling cramped. Its compact size also makes it ideal for downsizing, second homes, or as part of a multigenerational property strategy.

Small ADUs (like 500 sq ft units) tend to have a higher cost per square foot because certain fixed costs—such as permitting, site prep, utility connections, kitchens, and bathrooms—don’t shrink proportionally with the unit size. Whether you're building a 500 sq ft or a 1,000 sq ft unit, you still need essential systems like plumbing, electrical, insulation, and HVAC. Plus, small units require clever design to maximize functionality, often demanding custom solutions that increase both material and labor costs. As a result, while the overall project cost is lower, the price per square foot is higher compared to larger ADUs.