{"id":30179,"date":"2026-08-10T15:19:47","date_gmt":"2026-08-10T15:19:47","guid":{"rendered":"https:\/\/ark7.com\/blog\/?p=30179"},"modified":"2026-08-09T15:20:15","modified_gmt":"2026-08-09T15:20:15","slug":"adu-builders-phoenix","status":"publish","type":"post","link":"https:\/\/ark7.com\/blog\/learn\/cities\/adu-builders-phoenix\/","title":{"rendered":"10 Best ADU Builders in Phoenix &#8211; 2026"},"content":{"rendered":"\n<p>Phoenix has become substantially more accommodating to accessory dwelling units since Arizona&#8217;s recent legislative changes, and the city now operates its own pre-approved plan program. Whether you are building a casita for family, a rental unit, or a home office, the builder you choose shapes the budget, the schedule, and how smoothly permitting goes.<\/p>\n\n\n\n<p>For those interested in residential real estate exposure without a construction project,<a href=\"https:\/\/ark7.com\/\"> Ark7<\/a> offers fractional interests in professionally managed rental-property series, with shares starting as low as $20, subject to offering availability and eligibility.<\/p>\n\n\n\n<p>This guide profiles 10 companies building ADUs in and around Phoenix, compiled from publicly available company information as of 2026. Pricing, contact details, license status, and service areas change quickly, so confirm current information directly with any company before signing.<\/p>\n\n\n\n<div class=\"bg-blue-grey-1 padding-32px border-radius-12px margin-20px-t margin-20px-b\">\t \n  <div class=\"bg-white text-center padding-20px-v border-radius-8px\">\t \n    <h3 class=\"margin-auto display-block\">New to passive real estate investing?<\/h3>\t \n    <a class=\"margin-auto a7-button\" href=\"https:\/\/ark7.com\/?tc=K8L9N\" target=\"_blank\" rel=\"noopener\">Explore Ark7 Opportunities<\/a>\t \n  <\/div>\t \n<\/div>\n<div class=\"ark7-property-list padding-20px-v margin-20px-t margin-20px-b\" data-tags=\"SEOWidgetFeatured\" data-tc=\"K8L9N\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>HB 2720 drove the major 2024 ADU reforms for larger Arizona municipalities including Phoenix. HB 2928 followed in 2025, extending similar requirements to counties and addressing short-term rental rules.<\/li>\n\n\n\n<li>State law generally requires covered municipalities to allow an ADU up to the lesser of 75% of the primary dwelling&#8217;s gross floor area or 1,000 square feet.<\/li>\n\n\n\n<li>Phoenix is more permissive on larger lots: on parcels over 10,000 square feet, an ADU may be up to the lesser of 3,000 square feet, 10% of net lot area, or 75% of the primary dwelling.<\/li>\n\n\n\n<li>Phoenix currently permits two ADUs per single-family detached lot, with a possible third on qualifying one-acre parcels carrying an affordable-housing restriction.<\/li>\n\n\n\n<li>Phoenix operates an official ADU Standard Plan Library of pre-approved detached designs, which is distinct from a builder&#8217;s own repeated plans.<\/li>\n\n\n\n<li>Effective April 4, 2026, a Phoenix short-term rental application involving an ADU with a certificate of occupancy issued on or after September 14, 2024 requires the property owner to reside on the same property.<\/li>\n\n\n\n<li><a href=\"https:\/\/ark7.com\/\">Ark7<\/a> offers fractional shares in professionally managed rental properties starting at $20 per share, subject to offering availability and eligibility.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How This List Was Compiled<\/strong><\/h2>\n\n\n\n<p>This list was assembled from publicly available company information rather than a scoring model, and no ranking is implied by the order below. Entries range from ADU-focused design-build firms to factory-built housing producers, so confirm each company&#8217;s current Arizona ROC license, insurance, and Phoenix-specific ADU experience yourself. Company-published pricing, warranty terms, and review claims are labeled as such throughout.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Phoenix ADU Rules to Understand First<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unit count<\/strong>: Phoenix guidance currently permits two ADUs per single-family detached lot, with a possible third on qualifying one-acre parcels subject to an affordable-housing restriction.<\/li>\n\n\n\n<li><strong>Size, state baseline<\/strong>: A.R.S. 9-461.18 requires affected municipalities to allow an ADU of up to the lesser of 75% of the primary dwelling&#8217;s gross floor area or 1,000 square feet.<\/li>\n\n\n\n<li><strong>Size, Phoenix<\/strong>: On lots up to 10,000 square feet, Phoenix allows up to 1,000 square feet or 75% of the primary dwelling, whichever is less. On larger lots, the city permits up to the lesser of 3,000 square feet, 10% of net lot area, or 75% of the primary dwelling.<\/li>\n\n\n\n<li><strong>Setbacks<\/strong>: State law generally prevents municipalities from requiring rear or side ADU setbacks greater than five feet. Phoenix&#8217;s actual setback can be 0, 3, or 5 feet depending on ADU configuration and lot conditions, so check your specific case.<\/li>\n\n\n\n<li><strong>Parking<\/strong>: Phoenix generally may not require additional parking solely because an ADU is added, although converting an existing garage or carport can trigger replacement off-street parking elsewhere on the lot.<\/li>\n\n\n\n<li><strong>Long-term rental<\/strong>: State law eliminated municipal owner-occupancy barriers for separately leased long-term ADUs in covered jurisdictions, so the primary dwelling and the ADU may be rented separately.<\/li>\n\n\n\n<li><strong>Short-term rental<\/strong>: Effective April 4, 2026, a Phoenix STR application involving an ADU whose certificate of occupancy was issued on or after September 14, 2024 requires the owner to attest that they will reside on the property.<\/li>\n\n\n\n<li><strong>Pre-approved plans<\/strong>: Phoenix maintains an official Standard Plan Library of pre-approved detached ADU designs. A builder describing its own plans as &#8220;pre-approved&#8221; is not necessarily referring to that program, and site-specific approval still applies.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>10 ADU Companies Operating in Phoenix for 2026<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. ADU Innovators<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> North Central Avenue, Phoenix. The company&#8217;s own pages show conflicting suite numbers, so confirm the current address directly.<\/p>\n\n\n\n<p><strong>Type:<\/strong> Turnkey Design-Build<\/p>\n\n\n\n<p><strong>Price Range:<\/strong> Company quotes starting around $110,000 to $160,000 for 600 square foot units<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix, Scottsdale, Tempe, Paradise Valley, Peoria, Goodyear, Buckeye, Surprise, and Glendale<\/p>\n\n\n\n<p>ADU Innovators offers design and construction for ADUs, casitas, and garage conversions across the Valley, with pre-designed models from 400 to 800 square feet including The Jerome, The Sedona, and The Prescott.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company-reported 20 or more single-family and multi-unit developments completed<\/li>\n\n\n\n<li>Bilingual service in Spanish<\/li>\n\n\n\n<li>Permitting and city approval managed in house<\/li>\n\n\n\n<li>Published model range with indicative pricing<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. AZ ADU (AZ-ADU Builders, LLC)<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> 645 E Missouri Ave #250, Phoenix, AZ 85012<\/p>\n\n\n\n<p><strong>Contact:<\/strong> (602) 757-9294<\/p>\n\n\n\n<p><strong>License:<\/strong> ROC 351233<\/p>\n\n\n\n<p><strong>Timeline:<\/strong> The company advertises about eight months, covering three months permitting, four months construction, and one month final inspection<\/p>\n\n\n\n<p>AZ ADU builds casitas using a set of repeated floor plans including The Chameleon, The Bisbee, and The Camelback. Confirm which jurisdiction has approved any plan you are considering and whether it still requires site-specific approval, since a builder&#8217;s repeated design is not the same as a City of Phoenix Standard Plan Library design.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company-reported 30 or more years of combined team experience<\/li>\n\n\n\n<li>Four-phase process covering discovery, permitting, construction, and final inspection<\/li>\n\n\n\n<li>Plans developed around Arizona ADU statutes<\/li>\n\n\n\n<li>Desert-appropriate exterior finish selections<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Phoenix ADU Solutions, Inc.<\/strong><\/h3>\n\n\n\n<p><strong>Contact:<\/strong> (623) 526-7427<\/p>\n\n\n\n<p><strong>Type:<\/strong> Design-Build<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix and surrounding Valley communities<\/p>\n\n\n\n<p>Phoenix ADU Solutions addresses local building conditions, including expansive clay soils that can require engineered slabs. Its published technical specifications are company materials rather than independent test results.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Experience with Phoenix expansive clay soil conditions<\/li>\n\n\n\n<li>Passive cooling strategies for extreme heat<\/li>\n\n\n\n<li>High-performance low-emissivity windows<\/li>\n\n\n\n<li>Ten listed ADU services including Junior ADUs<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Everything Residential &amp; Commercial (ERC)<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> 1120 W Wagner Dr, Gilbert, AZ 85233<\/p>\n\n\n\n<p><strong>Contact:<\/strong> (480) 798-7060<\/p>\n\n\n\n<p><strong>Type:<\/strong> Custom and Prefab<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix metro including Scottsdale, Tempe, Mesa, Glendale, Chandler, Peoria, Apache Junction, Gold Canyon, and Queen Creek<\/p>\n\n\n\n<p>ERC offers both custom and prefab ADU construction with published pricing guidance. The company also publishes its own estimate of how much value an ADU adds; treat that as a contractor estimate rather than independent appraisal data.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Design-build services with full permitting support<\/li>\n\n\n\n<li>Both custom and prefab pathways under one company<\/li>\n\n\n\n<li>Construction process documentation published publicly<\/li>\n\n\n\n<li>Financing guidance covering HELOCs, renovation loans, and cash-out refinancing<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Bethom Contracting, LLC<\/strong><\/h3>\n\n\n\n<p><strong>Contact:<\/strong> (623) 238-1008<\/p>\n\n\n\n<p><strong>License:<\/strong> ROC 301110<\/p>\n\n\n\n<p><strong>Established:<\/strong> 1997<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix Valley<\/p>\n\n\n\n<p>Bethom Contracting brings nearly three decades of residential building experience to ADU work and states that it is licensed, bonded, and insured.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Two-year installation warranty on projects<\/li>\n\n\n\n<li>Long established operating history<\/li>\n\n\n\n<li>Flexible design approach for constrained lots<\/li>\n\n\n\n<li>Verified ROC license<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. JDB Builders Inc.<\/strong><\/h3>\n\n\n\n<p><strong>Contact:<\/strong> 855-782-8453<\/p>\n\n\n\n<p><strong>Type:<\/strong> In-House Design-Build<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix area<\/p>\n\n\n\n<p>JDB Builders currently advertises Phoenix ADU construction with an in-house design and construction approach, focusing on modern architecture and energy-efficient systems.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Design through construction handled internally<\/li>\n\n\n\n<li>Modern architectural focus<\/li>\n\n\n\n<li>Energy-efficient building systems<\/li>\n\n\n\n<li>Single-team accountability across phases<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>7. Cuneo Construction<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> 34084 N Sandstone Dr, San Tan Valley, AZ 85143<\/p>\n\n\n\n<p><strong>License:<\/strong> ROC 336498<\/p>\n\n\n\n<p><strong>Type:<\/strong> Custom Design-Build<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Phoenix, the East Valley, and the San Tan Valley area<\/p>\n\n\n\n<p>Cuneo Construction builds custom ADUs, casitas, and homes across Arizona and publishes completed casita projects alongside its license number.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Integrated financing option through a third-party lending partner<\/li>\n\n\n\n<li>Design-build services spanning remodels and commercial work<\/li>\n\n\n\n<li>Verified Arizona ROC license<\/li>\n\n\n\n<li>East Valley coverage<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>8. Arizona Garage Builders<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> 20866 West Werner Place, Buckeye, AZ 85396<\/p>\n\n\n\n<p><strong>Type:<\/strong> Garage and Casita Design-Build<\/p>\n\n\n\n<p><strong>Experience:<\/strong> The company reports more than 25 years of garage and casita experience<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Buckeye and the West Valley<\/p>\n\n\n\n<p>Arizona Garage Builders pairs custom garage and RV garage work with casitas and ADUs, covering a part of the Valley that Phoenix-centered firms often do not prioritize.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Dual specialization in garages and casitas<\/li>\n\n\n\n<li>Free 3D renderings during design<\/li>\n\n\n\n<li>Company-advertised 100% satisfaction guarantee<\/li>\n\n\n\n<li>Turnkey delivery from design through completion<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>9. Cavco Industries<\/strong><\/h3>\n\n\n\n<p><strong>Location:<\/strong> Goodyear facility at 1300 South Litchfield Road, Goodyear, AZ 85338<\/p>\n\n\n\n<p><strong>Headquarters:<\/strong> Phoenix, AZ<\/p>\n\n\n\n<p><strong>Type:<\/strong> Factory-Built Housing Producer<\/p>\n\n\n\n<p><strong>Service Area:<\/strong> Statewide Arizona through its dealer network<\/p>\n\n\n\n<p>Cavco describes itself as one of the largest U.S. producers of manufactured and modular homes, with brands including Cavco, Fleetwood, Palm Harbor, Cavalier, and Nationwide. Note that producing factory-built homes is not the same as providing turnkey Phoenix ADU design, permitting, site work, and installation, so confirm what scope a dealer will actually deliver.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Broad brand portfolio across product types<\/li>\n\n\n\n<li>Extensive Arizona dealer network<\/li>\n\n\n\n<li>Factory production and quality control<\/li>\n\n\n\n<li>Statewide delivery reach<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>10. Boxabl<\/strong><\/h3>\n\n\n\n<p><strong>Headquarters:<\/strong> North Las Vegas, NV<\/p>\n\n\n\n<p><strong>Type:<\/strong> Prefab Manufacturer<\/p>\n\n\n\n<p><strong>Product:<\/strong> The company markets its current Casita at roughly 375 square feet, though technical specifications for a given model may differ, so check the spec sheet for the version you order.<\/p>\n\n\n\n<p><strong>Pricing:<\/strong> Request a current manufacturer quote. Site preparation, foundation, utilities, transportation, and permits are separate from the unit price.<\/p>\n\n\n\n<p>Boxabl&#8217;s folding Casita ships as a single unit and unfolds on site. Third-party price and certification claims circulate widely, so work from current manufacturer documentation, including any evaluation report and its specific scope, rather than directory listings.<\/p>\n\n\n\n<p><strong>What Sets It Apart:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Compact standardized design<\/li>\n\n\n\n<li>Folding unit that ships flat<\/li>\n\n\n\n<li>Proximity of the Las Vegas facility to the Phoenix market<\/li>\n\n\n\n<li>Predictable unit configuration, though site costs vary by property<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Phoenix ADU Costs: What to Expect in 2026<\/strong><\/h2>\n\n\n\n<p>The ranges below are general market estimates for planning purposes, not quotes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>New detached ADU<\/strong>: roughly $120,000 at the low end, around $180,000 as a common midpoint, and $350,000 and above for larger or higher-finish projects.<\/li>\n\n\n\n<li><strong>Garage conversion<\/strong>: roughly $60,000 to $140,000, with around $100,000 as a common midpoint.<\/li>\n\n\n\n<li><strong>Prefab or modular, installed<\/strong>: roughly $85,000 to $200,000 depending on unit and site conditions.<\/li>\n\n\n\n<li><strong>Architectural plans<\/strong>: $3,000 to $15,000.<\/li>\n\n\n\n<li><strong>City permit and plan review<\/strong>: $2,500 to $4,200, plus impact fees commonly in the $900 to $1,600 range.<\/li>\n\n\n\n<li><strong>Site preparation and foundation<\/strong>: $10,000 to $35,000.<\/li>\n\n\n\n<li><strong>Utility connections<\/strong>: $8,000 to $20,000.<\/li>\n<\/ul>\n\n\n\n<p>Timelines vary widely and depend on whether a quoted figure covers construction only or design through certificate of occupancy. One Phoenix contractor represented here estimates eight to 12 months in total, including two to four months of design and permitting and six to eight months of construction. Prefab factory production can be fast, but site engineering, permits, foundation, utility work, and manufacturer lead time sit outside it. Permit review time also varies with application completeness, plan type, and correction cycles, so treat any single figure as indicative rather than a city standard.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Phoenix ADU Rental Income Potential<\/strong><\/h2>\n\n\n\n<p>Published rent estimates vary by source and methodology. Using one Phoenix-focused cost model as a single consistent basis, indicative citywide monthly ranges are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>One bedroom<\/strong>: roughly $1,250 to $1,700 per month<\/li>\n\n\n\n<li><strong>Two bedroom<\/strong>: roughly $1,600 to $2,200 per month<\/li>\n<\/ul>\n\n\n\n<p>Premium submarkets such as North Scottsdale are separate municipalities with different rent levels and should not be blended into Phoenix figures. Pull current comparable rents for your own neighborhood and unit size rather than relying on any citywide range.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Choose the Right Phoenix ADU Builder<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Verify licensing<\/strong>: Check active status with the Arizona Registrar of Contractors, confirm bonding and insurance, and ask for the specific ROC number.<\/li>\n\n\n\n<li><strong>Assess experience<\/strong>: Request completed ADU examples, ask about familiarity with your city&#8217;s permitting process, and ask how many projects they have finished locally.<\/li>\n\n\n\n<li><strong>Clarify scope and schedule<\/strong>: Get a written timeline, clarify exactly what the quoted price includes, and confirm who coordinates permitting.<\/li>\n\n\n\n<li><strong>Evaluate communication<\/strong>: Note responsiveness during quoting, and confirm who your primary contact will be during construction.<\/li>\n\n\n\n<li><strong>Compare financing<\/strong>: Ask whether the builder has lender partnerships, and compare those against HELOC, construction loan, and cash-out refinance options independently.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Questions to Ask Any Phoenix ADU Builder<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What is your ROC license number, and is it currently active?<\/li>\n\n\n\n<li>Does my parcel qualify for one ADU, two, or a third under the affordable-housing provision?<\/li>\n\n\n\n<li>Which setback applies to my configuration, 0, 3, or 5 feet?<\/li>\n\n\n\n<li>Are you using a City of Phoenix Standard Plan Library design or your own plan?<\/li>\n\n\n\n<li>Does your quote include site work, foundation, utilities, permits, and installation?<\/li>\n\n\n\n<li>Does your timeline cover construction only or design through certificate of occupancy?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Comparing ADUs and Fractional Real Estate<\/strong><\/h2>\n\n\n\n<p>An ADU can create rental-income potential and may increase appraised property value, but the increase varies substantially by neighborhood, unit quality, permitting status, and comparable sales. Some sources note the resale contribution is appraiser-dependent and can be less than construction cost, so percentage figures published by contractors should be treated as their estimates rather than established market data.<\/p>\n\n\n\n<p><strong>ADU considerations:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Return figures circulating for Phoenix ADUs generally reflect gross rent against construction cost. One published cost model estimates a range roughly equivalent to 7% to 10% annually before operating expenses and financing, which is a gross yield rather than an investor return. Actual results depend on vacancy, management, maintenance, insurance, taxes, financing, utilities, and transaction costs.<\/li>\n\n\n\n<li>Payback figures from the same models, such as roughly 10 years at an assumed cost and rent, are illustrative scenarios rather than observed outcomes.<\/li>\n\n\n\n<li>Long-term separate leasing is protected in covered jurisdictions, but short-term rental use now carries a Phoenix owner-residency requirement for qualifying newer ADUs.<\/li>\n\n\n\n<li>Construction requires substantial upfront capital, months of project management, and ongoing landlord responsibilities.<\/li>\n<\/ul>\n\n\n\n<p><strong>How fractional investing compares:<\/strong><\/p>\n\n\n\n<p>For those who prefer fractional real estate exposure rather than developing and managing an ADU directly,<a href=\"https:\/\/ark7.com\/\"> Ark7<\/a> is another model to consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Entry point as low as $20 per share, subject to offering availability, eligibility, and property-specific minimums<\/li>\n\n\n\n<li>Cash distributions when available, subject to property performance, expenses, reserves, and offering terms<\/li>\n\n\n\n<li>Professional property selection and management<\/li>\n\n\n\n<li>Exposure across multiple markets rather than a single property<\/li>\n\n\n\n<li>No construction timelines or permitting to manage<\/li>\n\n\n\n<li>Potential access to secondary trading, subject to holding periods, legal and state restrictions, platform availability, and market liquidity. Liquidity is not guaranteed, and investors should be prepared to hold shares indefinitely.<\/li>\n\n\n\n<li><a href=\"https:\/\/ark7.com\/ira\">Ark7 IRA options<\/a> support Traditional and Roth accounts, which may offer tax advantages depending on IRA rules, custodian fees, account type, and individual circumstances<\/li>\n<\/ul>\n\n\n\n<p>These are speculative securities involving substantial risk, including illiquidity, lack of diversification, and complete loss of capital.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Phoenix combines a permissive municipal framework, an official pre-approved plan library, and a builder market spanning turnkey design-build firms and factory-built housing producers. The difficulty is that Arizona statutory rules, Phoenix municipal rules, builder marketing, and third-party financial estimates all circulate together online as though they carry equal weight, and several widely repeated figures do not survive checking.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why Phoenix Stands Out for ADU Projects<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Multiple units allowed<\/strong>: Phoenix currently permits two ADUs per single-family detached lot, with a possible third on qualifying one-acre parcels under an affordable-housing restriction.<\/li>\n\n\n\n<li><strong>Generous large-lot sizing<\/strong>: On lots over 10,000 square feet, Phoenix permits up to the lesser of 3,000 square feet, 10% of net lot area, or 75% of the primary dwelling.<\/li>\n\n\n\n<li><strong>Pre-approved designs<\/strong>: The city&#8217;s Standard Plan Library offers pre-approved detached ADU plans.<\/li>\n\n\n\n<li><strong>Separate long-term leasing<\/strong>: Covered jurisdictions cannot prohibit renting the primary dwelling and the ADU separately on a long-term basis.<\/li>\n\n\n\n<li><strong>Range of delivery models<\/strong>: Turnkey design-build, prefab, and factory-built housing all serve the market.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Investor Tips for Phoenix ADU Projects<\/strong><\/h3>\n\n\n\n<p>Verify each company&#8217;s ROC license and current contact details directly, since outdated and duplicated phone numbers circulate across directory sites. Confirm with the City of Phoenix how many ADUs your parcel supports, which size formula applies, and which setback your configuration triggers, rather than assuming a single citywide standard. Ask whether a builder&#8217;s &#8220;pre-approved&#8221; plan refers to the City&#8217;s Standard Plan Library or simply to a design the firm repeats. If short-term rental income is part of your model, account for the April 4, 2026 owner-residency requirement that applies to ADUs with certificates of occupancy issued on or after September 14, 2024. Finally, treat any published yield or payback figure as a gross calculation before operating expenses, and build your own model from local comparable rents and total project cost.<\/p>\n\n\n\n<p>For those who prefer residential real estate exposure without a construction project,<a href=\"https:\/\/ark7.com\/\"> Ark7<\/a> offers fractional interests in rental-property series starting at $20 per share, subject to offering availability and eligibility. Cash distributions are made when available and are subject to property performance, expenses, reserves, and offering terms.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How much does it cost to build an ADU in Phoenix?<\/strong><\/h3>\n\n\n\n<p>General estimates run from roughly $120,000 to $350,000 and above for a new detached unit, with garage conversions commonly $60,000 to $140,000 and installed prefab units roughly $85,000 to $200,000. Budget separately for architectural plans, permit and plan review, impact fees, site preparation and foundation, and utility connections, which together often add $25,000 to $75,000. Treat all published figures as planning estimates rather than quotes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What size ADU can I build in Phoenix?<\/strong><\/h3>\n\n\n\n<p>State law requires affected municipalities to allow an ADU up to the lesser of 75% of the primary dwelling&#8217;s gross floor area or 1,000 square feet. Phoenix is more permissive on larger parcels: on lots up to 10,000 square feet the limit is 1,000 square feet or 75% of the primary dwelling, whichever is less, and on larger lots it is the lesser of 3,000 square feet, 10% of net lot area, or 75% of the primary dwelling. Phoenix also currently permits two ADUs per single-family detached lot, with a possible third on qualifying one-acre parcels under an affordable-housing restriction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Can I build an ADU on a property I do not live in?<\/strong><\/h3>\n\n\n\n<p>For long-term rentals, yes in covered jurisdictions. State law eliminated municipal owner-occupancy barriers for separately leased long-term ADUs, so the primary dwelling and the ADU may both be rented to tenants. Short-term rental is treated differently: effective April 4, 2026, a Phoenix STR application involving an ADU with a certificate of occupancy issued on or after September 14, 2024 requires the owner to reside on the property.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How long does it take to build an ADU in Phoenix?<\/strong><\/h3>\n\n\n\n<p>Timelines vary by builder, plan type, and application completeness. One Phoenix contractor estimates eight to 12 months in total, including two to four months of design and permitting followed by six to eight months of construction, while other Arizona sources place typical detached casitas at six to 10 months with complex projects running longer. Prefab factory production is faster, but permits, foundation, site work, utilities, and manufacturer lead time sit outside it. Always ask whether a quoted range covers construction only or design through certificate of occupancy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What licensing should Phoenix ADU builders have?<\/strong><\/h3>\n\n\n\n<p>Every ADU builder in Arizona must hold an active license from the Arizona Registrar of Contractors, and you can verify status at roc.az.gov. Builders should also be bonded and insured. Several companies in this guide publish ROC numbers, including AZ ADU at ROC 351233, Bethom Contracting at ROC 301110, and Cuneo Construction at ROC 336498. Verify each number yourself rather than relying on any directory listing.<\/p>\n\n\n\n<p><em>Neither Ark7 nor Ark7 Properties is a broker-dealer or an investment adviser. Dalmore Group LLC, a registered broker-dealer and member FINRA\/SIPC, located at 525 Green Place, Woodmere, NY 11598, is the broker-dealer of record for Ark7, an issuer direct offering. Neither Ark7 nor Dalmore makes recommendations or provides advice about investments, and nothing here should be construed as a recommendation for any security. Investments on the Ark7 platform are speculative and involve substantial risks, including illiquidity, lack of diversification, and complete loss of capital. Cash distributions are not guaranteed and are subject to property performance, expenses, reserves, and offering terms. Past performance is no guarantee of future results. This article is for informational purposes only.<\/em><\/p>\n\n\n\n<div class=\"bg-blue-grey-1 padding-32px border-radius-12px margin-20px-t margin-20px-b\">\t \n  <div class=\"bg-white text-center padding-20px-v border-radius-8px\">\t \n    <h3 class=\"margin-auto display-block\">New to passive real estate investing?<\/h3>\t \n    <a class=\"margin-auto a7-button\" href=\"https:\/\/ark7.com\/?tc=K8L9N\" target=\"_blank\" rel=\"noopener\">Explore Ark7 Opportunities<\/a>\t \n  <\/div>\t \n<\/div>\n<div class=\"ark7-property-list padding-20px-v margin-20px-t margin-20px-b\" data-tags=\"SEOWidgetFeatured\" data-tc=\"K8L9N\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Phoenix has become substantially more accommodating to accessory dwelling units since Arizona&#8217;s recent legislative changes, and the city now operates its own pre-approved plan program. Whether you are building a casita for family, a rental unit, or a home office, the builder you choose shapes the budget, the schedule, and how smoothly permitting goes. For &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/ark7.com\/blog\/learn\/cities\/adu-builders-phoenix\/\"> <span class=\"screen-reader-text\">10 Best ADU Builders in Phoenix &#8211; 2026<\/span> Read More \u00bb<\/a><\/p>\n","protected":false},"author":22,"featured_media":7954,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[167],"tags":[],"class_list":["post-30179","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - 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