A guide for building backyard homes in
Berkeley, California

Learn about local zoning guidelines, financing options, and getting started with building a custom ADU in Berkeley, California.

Type Five City Guide

Introduction to ADUs

A quick overview of what a backyard home offers for you, your family, and your property.

An ADU, or Accessory Dwelling Unit, is a secondary living space on your property that provides complete independence with its own living, sleeping, eating, cooking, and sanitation facilities. It can be attached to your main house, converted from an existing structure like a garage, or built as a new detached unit, such as a backyard cottage or granny flat. This makes it a versatile housing solution tailored to your needs, whether for guests, family, or tenants.

Building an ADU can be a practical and financially smart choice. It’s often more affordable than traditional homes since it leverages existing land and infrastructure, avoiding costly new developments. An ADU can provide as much living space as a modern apartment, making efficient use of your property. It can generate rental income to offset mortgage payments, offer a private space for family members like aging parents, and increase your property’s market value. Plus, it’s eco-friendly, reducing the need for new construction and supporting sustainable living, especially in areas with housing shortages.

Key Benefits of a Backyard Home

Increases Property Value

A well-built and thoughtfully designed ADU can boost the market value of your property, often 25%- 35% higher in urban areas.

Provides Housing for Family Members

Creates additional space for your family, regardless of their age or needs.

Expands Current Living Space

Adapts to needs like home office, guest house, or studio.

Generates Rental Income

Provides passive income, offsetting costs or funding expenses.

Overview of Construction Methods

There are a couple of different ways that your ADU can get built

When building an Accessory Dwelling Unit (ADU), you’ll need to decide on the construction method. Common options include traditional, prefabricated (prefab), modular, and panelized construction, each with its own pros and cons.

  • Traditional Construction involves building from scratch on-site, offering high customization but often taking longer and costing more.
  • Prefabricated Construction means the ADU is built in a factory and delivered, providing speed and cost savings but with limited design flexibility.
  • Modular Construction builds sections in a factory for on-site assembly, balancing speed and customization.
  • Panelized Construction uses pre-built panels assembled on-site, offering a middle ground in cost and time.

At Type Five, our approach combines the best of both worlds, offering you design flexibility with the cost savings and convenience of prefab. Here are some of the notable features:

  • Customizable: Every Type Five ADU is customizable online. You can select the size, color, layout, amenities, bedrooms, finishings, and more without paying thousands of dollars in design fees.
  • Turn-Key Experience: Thanks to our streamlined process, you can ditch the chaos and stress of managing the complexities of building your backyard home. We’ll draw up your plans, get them approved by the city, and manage construction so you don’t have to. Our platform allows us to be your project's architect and general contractor, saving you enormous time and money while giving you the peace of mind that you're getting an amazing service and product.
  • Efficient Construction Timelines: A traditionally built ADU can take dozens of subcontractors and operate under a more bespoke process to get your ADU built. We've streamlined the number of contractors involved, and run a repeatable, consistent process for every home we build. You can expect clear timelines, little to no back and forth, and weeks instead of months of construction on your property.
  • Transparent Pricing: We guarantee your price right in our design process before you even submit a deposit. You can say goodbye to financial surprises & unexpected “change orders” because every project comes with a guaranteed maximum price before the building starts. This means you can accurately budget for the other things in your life… like your retirement or that vacation you’ve been thinking about!

What’s the bottom line? If you want a backyard home but don’t want to deal with the hassle and expense of traditional construction, then prefabricated/modular construction is the way to go. And if you want the convenience of prefab with the flexibility of custom design, then we’ve got your back.

The Process

How an ADU gets built will vary based on who chooses as your partner, but here are the general phases.

Designing an ADU
01
Design
The design process is key in building a home that's tailored to your tastes, needs, and budget. This includes making decisions around the shape, size, layout, finishes, and amenities.
Estimated Timeline:
4-6 weeks
Key Milestones:
  • A site feasibility study will help determine what can be built and where.
  • Exploration and refinement of the interior layout
  • Selection of finishes and materials
  • Finalization of design plans
  • Preliminary budgets and timelines assembled for review
Who You'll Work With:
Account ManagerArchitectProject ManagerConstruction Manager
Permitting an ADU
02
Permit
In the permitting phase, the plans, applications, and documentation is compiled and submitted to the city or jurisdiction where you live. Several departments are involved in evaluating that the plans meet the local and state codes, regulations, and requirements.
Estimated Timeline:
2-3 months
Key Milestones:
  • Preparation of permit documentation
  • Submittal to local building department
  • Addressing any inspection comments
  • Receiving permit approval
  • Pre-construction planning
Who You'll Work With:
ArchitectProject ManagerCity PlannersBuilding Department Officials
Building an ADU
03
Build
Once the permit is approved, your project can begin construction. In a typical process, a general contractor and their team of sub-contractors will execute the different phases of the construction scope, which depends on the scale of the project.
Estimated Timeline:
4-10 months
Key Milestones:
  • Site preparation and foundation work
  • Framing and structural assembly
  • Plumbing, electrical, and HVAC installation
  • Interior and exterior finishing
  • Inspections
Who You'll Work With:
Project ManagerGeneral ContractorSkilled TradespeopleBuilding InspectorsUtility ProvidersMaterial Suppliers
Living in an ADU
04
Live
Your new backyard home is ready to live and use! Over the years, you might want to improve and upgrade your ADU.
Estimated Timeline:
Forever
Key Milestones:
  • Moving in and settling phase
  • 30-day follow-up inspection
  • Seasonal maintenance check-ins
  • Warranty service as needed
  • Future upgrade opportunities
Who You'll Work With:
Maintenance SpecialistWarranty Service TeamContractors

Berkeley's ADU Guidelines

Frequently asked questions about what you can build in Berkeley

Feasibility
Can I build an ADU on my property in Berkeley?
How many ADUs can I have in Berkeley?
Design
Is there a minimum lot size for an ADU in Berkeley?
Is there a minimum size for an ADU in Berkeley?
How big of an ADU can I build in Berkeley?
Can you build a 2 story ADU in Berkeley?
How many bedrooms can an ADU have in Berkeley?
How close to the property line can I build an ADU in Berkeley?
Permitting
Do I need a permit for an ADU in Berkeley?
How long does it take to get a permit for an ADU in Berkeley?
Utilities
Does an ADU need its own electrical panel, water meter, or gas meter in Berkeley?
Are fire sprinklers required in an ADU in Berkeley?
Is solar required on an ADU in Berkeley?
Financials
How much can I rent an ADU for in Berkeley?
Can an ADU be used as an AirBnB or short-term rental in Berkeley?
Can your HOA prevent your ADU build in Berkeley?
How does an ADU affect property taxes in Berkeley?
How much value does an ADU add in Berkeley?
How much does it cost to build an ADU in Berkeley?
adu construction
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Schedule a free consultation to discuss your project, and learn more about our process, pricing, and approach.

Type Five is building the next generation of American homes.
Designed in Berkeley, California.
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Type Five - Guide to building ADUs in Berkeley, California