ADU Construction
January 10, 2026

Prefab ADU vs Custom-Built ADU: Which is Cheaper in San Diego?

Comparing prefab ADU costs ($100K-$200K) vs custom-built ADUs ($150K-$350K). Pros, cons, and which option is right for your San Diego property.

When planning an ADU in San Diego, one of the biggest decisions is whether to go with a prefab (modular) ADU or a custom-built (stick-built) ADU. Here's an honest comparison.

Prefab ADU Overview

Prefab ADUs are manufactured off-site and delivered to your property. They come in standardized designs and sizes.

Prefab ADU Cost Range

  • Unit cost: $80,000-$150,000
  • Site work and foundation: $30,000-$50,000
  • Utility connections: $15,000-$30,000
  • Permits and fees: $10,000-$20,000
  • Total installed: $135,000-$250,000

Prefab ADU Pros

  • Faster construction (unit built while permits process)
  • Predictable pricing
  • Quality controlled factory environment
  • Less disruption during on-site installation

Prefab ADU Cons

  • Limited customization options
  • Standard sizes may not maximize your lot
  • Delivery access issues on narrow lots or hillsides
  • Hidden costs for site preparation and connections
  • May look "cookie-cutter" compared to main home

Custom-Built ADU Overview

Custom ADUs are built on-site from the ground up, designed specifically for your property and preferences.

Custom ADU Cost Range

  • Design and permits: $15,000-$30,000
  • Construction: $300-$450/sq ft
  • 500 sq ft total: $165,000-$250,000
  • 800 sq ft total: $255,000-$380,000
  • 1,200 sq ft total: $375,000-$560,000

Custom ADU Pros

  • Complete design flexibility
  • Matches your home's architecture
  • Maximizes your specific lot layout
  • Works on challenging sites (slopes, tight access)
  • Higher quality potential with premium materials
  • Often better long-term value and rental rates

Custom ADU Cons

  • Longer construction timeline (4-6 months on-site)
  • More variables that can affect final cost
  • Requires more decision-making during process

Which is Cheaper? The Real Answer

It depends on your situation.

Prefab may be cheaper if:

  • You have easy truck access to your backyard
  • Your lot is flat and already prepared
  • Standard sizes work for your space
  • You want the fastest timeline possible

Custom may be cheaper if:

  • You have a sloped or irregular lot
  • Delivery access is limited
  • You want to maximize every square foot
  • Local permitting favors site-built construction

Rental Income Comparison

Custom ADUs often command 10-15% higher rents due to:

  • Better integration with the property
  • Higher quality finishes
  • More appealing curb appeal
  • Optimized layouts

Our Recommendation

At One Stop Builders, we specialize in custom-built ADUs because we believe they offer the best value for San Diego homeowners. Contact us at (858) 567-0007 for a free consultation to discuss your options.

One Stop Builders Team
Licensed San Diego Remodeling Contractor #1101128

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