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How Much Does it Cost to Build an ADU in Dallas?
As more Dallas homeowners look for flexible, long-term living solutions for aging parents, adult children, or extended family, Accessory Dwelling Units (ADUs) have become one of the most valuable additions you can make to your property. Knowing the cost to build an ADU is an important first step in the process.
In this guide, we look at the full range of accessory dwelling unit costs in Dallas, what influences them, and answer some frequently asked questions.
On this page:
- Can You Build an ADU in Dallas?
- How Much Does It Cost to Build an ADU in Dallas?
- What Factors Influence the Cost of Building an ADU in Dallas?
- Additional Costs to Budget For
- Dallas ADU FAQ
- Work With Trusted ADU Builders in Dallas
Can You Build an ADU in Dallas?
In most cases, yes, you can build an ADU in Dallas. However, the specific path to approval depends on your zoning, lot configuration, and whether your neighborhood has an active HOA or historic district requirements. Dallas is a patchwork of zoning rules, and many homeowners are told conflicting or incomplete information before they reach us.
That’s exactly why Estate ADU begins every project with a Property Analysis, where our team evaluates your lot, setbacks, utilities, zoning, and design goals to confirm whether an ADU is feasible and what type makes the most sense.
Learn more in our 2026 ADU Permit and Regulation Guide for Dallas Homeowners.
How Much Does It Cost to Build an ADU in Dallas?
ADU costs in Dallas can range from $75,000 to $250,000. Below, we’ll break down our two types of ADUs and how their costs differ. Discover our services to learn more about each one.
Garage Conversion ADU Costs in Dallas
The cost to convert a garage into an ADU in Dallas is typically $65,000 to $90,000. This range varies based on garage condition, plumbing distance, electrical upgrades, and finish selections. Garage conversions are the most affordable way to build an ADU because they utilize an existing structure, which reduces foundation, framing, and roofing costs.
Cost Drivers Unique to Garage Conversions
Even with an existing structure, a garage must be transformed into a fully conditioned, code-compliant living space. Costs typically come from:
- Foundation repair or leveling (older garages often need reinforcement)
- Electrical upgrades to support kitchen appliances, HVAC, and lighting
- New insulation, drywall, windows, and doors
- Mini-split HVAC system installation
- Plumbing trenching for bathrooms or kitchenettes
- Ceiling height adjustments in older 1950s to 70s garages
- Exterior modifications to convert the garage door into a wall with proper egress
When a Garage Conversion Makes Sense
Garage conversions are ideal when:
- The garage structure is in good condition
- You need the most budget-friendly ADU option
- A family member needs a quick, accessible place to live
- You have alternate parking or don’t rely on garage space
For many families seeking a fast, cost-effective multigenerational solution, garage conversions provide predictable budgets and shorter timelines.
Detached ADU Costs in Dallas
Detached ADUs, often called backyard homes, granny flats, or guest houses, offer maximum privacy, flexibility, and long-term property value. These are the most popular ADUs in Dallas.
Detached ADUs in Dallas generally fall between $75,000 and $100,000 for basic models. More complex can exceed $100k depending on the features chosen.
Because these are standalone homes, the cost includes:
- Full foundation
- Framing and roofing
- Plumbing, electrical, HVAC
- Site work and utility trenching
- Kitchen, bathroom, flooring, cabinetry, and finishes
Detached ADUs offer the highest return on investment and the greatest flexibility for long-term family needs.
What Drives the Cost of Detached ADUs?
Three main elements impact pricing:
- Square Footage
- Finish Level
- Utility Connections and Site Conditions
Because ADU pricing in Dallas, Texas, varies by property, layout, and upgrades, the best way to get an accurate estimate is through a personalized review of your lot and goals. Estate ADU’s clear process makes sure that you will get the most accurate estimate and the best outcome.
What Factors Influence the Cost of Building an ADU in Dallas?
No two Dallas ADUs cost the same, and that’s because several key factors influence your total ADU construction cost. Understanding these early helps homeowners set realistic expectations and avoid surprises later in the process.
Size and Square Footage
Larger ADUs require more materials, labor, and mechanical systems. Since ADUs pack bathrooms, kitchens, HVAC, and storage into a compact footprint, the cost per square foot is typically higher than a standard home addition. Smaller ADUs aren’t always dramatically cheaper, because every unit must include the expensive “core” utilities.
Level of Finish and Customization
Your choice of finishes, like flooring, cabinets, tile, fixtures, and interior doors, plays a meaningful role in the final cost. Estate ADU includes high-quality standard features such as:
- ½” drywall with orange-peel finish
- Shaker or slab cabinets
- Subway tile shower and backsplash
- Luxury vinyl plank flooring
- Mini-split HVAC
- Glass shower door
Upgrades like vaulted ceilings, exterior siding packages, custom millwork, or integrated smart-home systems can increase your budget.
Site Conditions and Utilities
Every lot is unique, and factors such as slope, soil quality, tree roots, accessibility, and distance to utilities affect construction cost. Trenching for water, sewer, electrical, and drainage is often one of the most variable line items in an ADU budget.
Permitting Complexity and HOA Requirements
Dallas permitting can be straightforward, or it can require multiple rounds of review, historic district approval, or HOA presentations. These steps can influence cost if plans must be revised or engineered differently.
Estate ADU handles all drawings, site plans, surveys, structural plans, and documentation required for permitting, saving homeowners significant time and uncertainty.
Labor and Materials in the DFW Market
Construction labor and material costs vary across the Metroplex. In-demand trades, fluctuating material prices, and the premium on high-quality finishing all impact final cost. Choosing a specialist like Estate ADU means accurate pricing from day one.
When you understand the factors that influence Dallas ADU construction costs, you’re far better equipped to plan a project that fits your property, your timeline, and your family’s long-term needs. No matter what type of ADU you’re considering, Estate ADU is here to help you understand your true costs, avoid surprises, and build a space that serves your family for years to come. View our Portfolio to see what we can do for you.
Additional Costs to Budget For
Even after estimating the core construction cost of a garage conversion or detached ADU, Dallas homeowners should expect a few additional expenses that complete the project and give long-term comfort and safety. These aren’t “hidden costs.” They’re simply part of building a fully livable, code-compliant home in your backyard.
Landscaping and Exterior Improvements
ADUs often require adjustments to the surrounding property, including:
- Grading and drainage improvements
- Walkways or steps
- Privacy fencing
- Tree trimming or removal
- Lighting for safe access
These outdoor elements make the ADU feel integrated into the property rather than “added on.”
Driveways, Parking, and Access
Some ADUs, especially garage conversions and two-story units, trigger parking requirements depending on zoning or HOA rules. This may mean adding a driveway extension, creating a parking pad, or reconfiguring garage access.
Utility Costs and Meter Upgrades
Occasionally, an ADU may require:
- Electrical panel upgrades
- New subpanels
- Water/sewer line extensions
- Smart home or security system integrations
These enhancements depend heavily on the age and condition of the main home.
Financing Costs
Estate ADU partners with regional lenders, including Frost Bank, to offer HELOCs, home equity loans, and progress home equity loans, which are options that can make ADU construction far more achievable.
Each carries its own closing costs, interest structures, and approval requirements. Many families find these options preferable to relocating or paying for assisted living.
These additional expenses are a normal part of creating a fully functional, code-compliant ADU, and understanding them early prevents costly surprises later. Estate ADU believes homeowners deserve complete transparency. We walk you through everything so you have a clear and accurate picture of your Dallas accessory dwelling unit cost from day one.
See our Cost Guide for more information.
Dallas ADU FAQ
1. How much do permits and fees cost for an ADU in Dallas?
Permits and fees for an ADU in Dallas vary based on the property’s zoning, size of the ADU, and whether your neighborhood has an HOA or historic district oversight.
Most homeowners can expect permit-related expenses to fall between $2,000 and $5,000.
2. How long does it take to construct an ADU in Dallas?
Most ADUs in Dallas take 1-6 months, depending on whether any city variances are required, from start to finish. Learn more about how long it takes to build an ADU in Dallas.
3. What are the most common ways to finance an ADU in Dallas?
Homeowners typically fund ADU construction through one of the following:
- Home Equity Lines of Credit (HELOCs)
- Home Equity Loans
- Cash-out refinancing
- Personal loans (for smaller garage conversions)
- Progress home equity loans through Estate ADU’s lending partners
- Savings or a combination of financing methods
Discover more about financing your ADU.
Work With Trusted ADU Builders in Dallas
If you’re planning a simple garage conversion or evaluating the full cost to build a backyard home in Dallas, understanding your options is the first step toward creating a space that truly supports your family. With so many variables, having experienced ADU builders in Dallas on your side makes the process clearer, faster, and far more predictable.
Estate ADU specializes exclusively in ADUs, and our team is here to guide you with transparent pricing, expert planning, and a streamlined design-build process tailored to Dallas homeowners.
Contact Us
Get a personalized assessment of what an ADU would cost on your property. Contact us today.
