Accessory Dwelling Market

Part
01
of two
Part
01

Accessory Dwelling Market - California

The market size of the accessory dwelling unit (AUD) in California is estimated at $530.25 million.

Accessory Dwelling Market - California

  • According to a recent article by the Association of Realtors (REA), there is currently no definitive estimate on the number of AUDs currently present in the US, but reports have placed this figure at 50,000 for AUDs with legal permits and as many as 3 million AUDs without a permit.
  • The CEO of Prefab ADU, a notable manufacturer of prefabricated ADU, stated that the most popular ADU model, a 288-square-foot home, costs about $105,000 to install.
  • The total market size of the AUD market, which comprises both new and old accessory dwelling units, can be directly estimated at $320.2 billion (3.05 million AUD units * $105,000). This is most certainly a gross valuation of the market.
  • The state of California currently accounts for a major share of this growth. According to recent reports, the ADU market in Los Angeles California is estimated to have expanded 30 times its previous size in just two years.
  • We have calculated the market size of the AUD in California to be $530.25 million.
  • The total number of ADU projects permitted by some cities in California include;
    • The city of Los Angeles = 4,171.
    • The city of Oxnard = 37.
    • The city of Concord = 50.
    • The city of Atherton = 13.
    • The city of South Lake Tahoe = 56.
    • The city of Sacramento = 32.
    • The city of Long Beach = 118.
    • The city of San Francisco = 382.
    • The city of San Jose = 190.
    • The city of Shasta Lake = 1.

Research Strategy

To calculate the size of California accessory dwelling market, First, we identified the number of ADU projects permitted by some cities in California and the multiplied this values with the average cost of manufacturing an ADU ($105,000). We have performed the below calculations to arrive at our response.

Triangulation

To calculate the size of California accessory dwelling market;
  • Average manufacturing cost of an ADU = $105,000.
  • Number of ADU projects permitted by Los Angeles in 2018 = 4,171. Therefore, the total value of new ADUs = ($105,000 × 4,171) = $437,955,000.
  • Number of ADU projects permitted by Oxnard in 2018 = 37. Therefore, the total value of new ADUs = ($105,000 × 37) = $3,885,000.
  • Number of ADU projects permitted by Concord in 2018 = 50. Therefore, the total value of new ADUs = ($105,000 × 50) = $5,250,000.
  • Number of ADU projects permitted by Atherton in 2018 = 13. Therefore, the total value of new ADUs = ($105,000 × 13) = $1,365,000.
  • Number of ADU projects permitted by South Lake Tahoe in 2018 = 56. Therefore, the total value of new ADUs = ($105,000 × 56) = $5,880,000.
  • Number of ADU projects permitted by Sacramento in 2018 = 32. Therefore, the total value of new ADUs = ($105,000 × 32) = $3,360,000.
  • Number of ADU projects permitted by Long Beach in 2018 = 118. Therefore, the total value of new ADUs = ($105,000 × 118) = $12,390,000.
  • Number of ADU projects permitted by San Francisco in 2018 = 382. Therefore, the total value of new ADUs = ($105,000 × 382) = $40,110,000.
  • Number of ADU projects permitted by San Jose in 2018 = 190. Therefore, the total value of new ADUs = ($105,000 × 190) = $19,950,000.
  • Number of ADU projects permitted by Shasta Lake in 2018 = 1. Therefore, the total value of new ADUs = ($105,000 × 1) = $105,000.
  • Summing the total value of new ADUs for the different cities = $437,955,000 + $3,885,000 + $5,250,000 + $1,365,000 + $5,880,000 + $3,360,000 + $12,390,000 + $40,110,000 + $19,950,000 + $105,000 = $530,250,000.
  • Therefore, the market size of the AUD in California is estimated at $530,250,000 = $530.25 million.

Part
02
of two
Part
02

Accessory Dwelling Market - Key Players

Seven notable manufacturers of prefabricated accessory dwelling units (ADU) in the United States include PrefabADU, Dweller, Cover, US Modular Inc., New Avenue, ActonADU, and ADU Homes.

PrefabADU

Dweller

Cover

US Modular Inc.

New Avenue

ActonADU

ADU Homes

Research Strategy

To identify examples of notable manufacturers of prefabricated accessory dwelling units in the United States, we scanned a list of ADU professionals by Accessory Dwellings. From the list, we analyzed the organizations listed and identified companies that are actual manufacturers, reputable, and cover a reasonable number of cities.
Sources
Sources

From Part 02