<h2>The ADU Market Opportunity</h2><p>The accessory dwelling unit market has experienced explosive growth over the past five years, and all indicators point to continued expansion. For contractors, this represents a significant business opportunity.</p><h3>Market Size and Growth</h3><p>The ADU construction market is estimated at over $10 billion annually in the United States, with year-over-year growth exceeding 20% in many markets. California alone saw over 20,000 ADU permits issued in the past year.</p><h3>Driving Factors</h3><ul><li>Housing affordability crisis</li><li>Remote work trends increasing demand for separate spaces</li><li>Aging population seeking multi-generational living solutions</li><li>Legislative changes making ADUs easier to build</li><li>Rising rental income potential</li></ul><h3>Positioning Your Business</h3><p>Contractors looking to enter or expand in the ADU market should focus on specialization, streamlined processes, and strong online presence. Listing your business on directories like ADU Pros can help you reach homeowners actively searching for qualified builders.</p>
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The Business Case for ADU Contractors: Market Growth in 2025
Jennifer Walsh
January 21, 2026