JADU Construction — Junior Accessory Dwelling Unit Builder in the Bay Area

Convert Unused Space Into a Private, Fully Functional Living Unit in Gilroy, Saratoga, Morgan Hill & Surrounding Cities

A Junior Accessory Dwelling Unit is a small, self-contained living space  no larger than 500 square feet that’s carved out of your existing home. It doesn’t sit in the backyard like a detached ADU. It doesn’t require a new foundation. Instead, it repurposes space that’s already part of your house a bedroom, a portion of a large floor plan, or an attached garage and transforms it into an independent unit with its own entrance and a small efficiency kitchen.

One of the things that makes JADUs unique is that they’re allowed to share a bathroom with the main residence. For a lot of families, that’s not a compromise it’s actually a practical advantage that keeps costs down and makes construction significantly simpler.

California has been pushing hard to create more housing, and JADUs are a direct result of that effort. The state has streamlined the approval process, reduced fees, and given homeowners more flexibility than ever before. For people living in communities like ours where housing costs are high and demand is relentless a JADU is one of the smartest moves you can make with the space you already own.

Here’s what makes this especially relevant if you live in our service area.

In Gilroy and Morgan Hill, many homes were built with generous floor plans and attached garages that are perfect JADU candidates. The lots are larger, the home footprints tend to be more spacious, and the cost of conversion is lower than in the more expensive parts of the Bay Area. We’ve worked with homeowners in both cities who were shocked at how little it cost to turn an unused bedroom and a section of hallway into a fully permitted living unit.

In Hollister, the opportunity is even more compelling. Construction costs in San Benito County are generally lower, but rental demand has been growing steadily as more workers commute into Santa Clara County. A JADU in Hollister is one of the highest-return, lowest-risk housing investments a homeowner can make right now.

Homeowners in Los Altos and Saratoga tend to approach JADUs a little differently. The homes in these communities are larger, the properties are more established, and the motivations are often less about rental income and more about family. We’ve built JADUs in Los Altos Hills for aging parents who wanted a private space on the same property, complete with their own entrance and a small kitchen for morning coffee. In Saratoga, we’ve seen families create elegant in-law suites that blend seamlessly with the rest of the home spaces that feel intentional, not improvised.

And in Los Gatos, the diversity of housing stock means the possibilities are wide open. Whether it’s a ranch-style home with an oversized attached garage or a two-story house with an underutilized ground floor, we’ve found creative solutions for homeowners across the town. Los Gatos families are particularly drawn to JADUs because they offer a way to keep adult children close while they save up in one of the most expensive housing markets in the country.

Whatever your reason rental income, family housing, a private guest suite, or simply making smarter use of your space a JADU gets it done faster and for less money than almost any other construction project.

SGM Builders Home Exterior Remodel Gilroy Bay Area California - Covered Porch and Patio by General Contractor

JADU vs. Full ADU — How to Know Which One Is Right for Your Property

This is one of the first questions homeowners ask us, and the right answer is never one-size-fits-all. It depends on your property, your budget, your goals, and your timeline. Here's an honest comparison.
A JADU is built within the existing footprint of your home. It's limited to 500 square feet, must include an efficiency kitchen and a separate exterior entrance, and can share a bathroom with the main house. Because you're working within existing walls, the construction is faster, the permitting is simpler, and the cost is significantly lower. For families who want a connected but private space think an aging parent, an adult child, or a live-in caregiver a JADU is often the ideal solution.
A full ADU can be detached or attached, typically includes its own bathroom, and can be up to 1,200 square feet or more depending on your city's rules. It offers greater independence, higher rental income potential, and more design flexibility. But it also costs more, takes longer to build, and involves a more complex approval process.
Here's a detail many homeowners don't realize: California law allows you to build both a JADU and an ADU on the same single-family property. Some of our clients in Gilroy and Morgan Hill where lot sizes make this especially feasible have built both, creating two additional income-generating units on a single lot.
Not sure which direction to go? That's literally what our free consultation is for. We'll look at your home, your lot, your local regulations, and your goals and we'll give you a clear recommendation with no pressure attached.

JADU Requirements and Regulations You Need to Know

Before starting any JADU project, we make sure every homeowner has a clear understanding of the rules. California's JADU regulations are designed to be homeowner-friendly, but there are specific requirements that must be met. Here's what you need to know.

Size limit

A JADU cannot exceed 500 square feet. Most of the units we build fall between 200 and 500 square feet, which is more than enough for a comfortable studio or one-bedroom layout.

Location within the home.

The JADU must be created within the existing footprint of your primary residence. That includes attached garages, spare bedrooms, basements, or any other section of the house that can be reasonably converted. You're not building a new structure you're reimagining an existing one.

Separate entrance.

Every JADU needs its own exterior entrance so the occupant can come and go independently. This is usually straightforward sometimes it's as simple as adding a door to an exterior wall.

Efficiency kitchen.

our JADU must include a small kitchen area with a sink, a cooking appliance (like a cooktop or microwave), and a food preparation counter. It doesn't need to be a full gourmet kitchen — just functional enough for daily living.

Shared bathroom option.

Unlike a full ADU, a JADU is allowed to share a bathroom with the main home. You can also add a private bathroom if the layout and budget allow for it.

Why Bay Area Homeowners Are Choosing JADUs

Every homeowner has their own reason for building a JADU. Here are the ones we hear most often.

The Bay Area isn’t cheap. A JADU gives aging parents, adult children, or other family members a private, dignified place to live without the crushing cost of renting a separate apartment in this market. They get their own entrance, their own kitchen, and their own space but they’re right there when it matters.

Because a JADU uses your home’s existing structure, you’re not pouring a new foundation, building new exterior walls, or running separate utility lines from scratch. That translates to real savings. Most JADU projects cost a fraction of what a detached ADU would run, making it one of the most budget-friendly ways to add living space in the Bay Area.

Homes with permitted additional living units are increasingly attractive to Bay Area buyers. A well-finished JADU signals flexibility it tells a potential buyer that the property can generate income, house family, or serve as a private office. That versatility shows up in your home’s appraised value.

Rental demand across the Bay Area remains intense. A JADU even a modest studio-sized one can bring in meaningful monthly income. Many of our clients use that revenue to offset their mortgage, fund renovations, or simply give themselves more financial breathing room.

California has streamlined the JADU approval process. Many Bay Area cities process JADU permits faster than full ADU permits because the projects are smaller and less complex. From our experience, JADU projects typically move from concept to completion more quickly than any other type of dwelling unit addition.

Almost every home has a room or area that isn’t pulling its weight. Maybe it’s a bedroom that became a storage closet, or a garage that hasn’t seen a car in years. A JADU turns that dead space into something valuable a real living unit that serves your family or generates income every single month.

Frequently Asked Questions About JADU Construction

Two-story modern ADU with balcony and exterior lighting in Bay Area California

From the initial consultation to move-in day, most JADU projects take somewhere between 4 and 7 months. The biggest variable is usually permit processing time, which depends on your city’s workload. The actual construction phase for a JADU is relatively quick often 8 to 16 weeks because we’re working within your existing home rather than building from the ground up.

Costs depend on the size of the unit, the condition of the existing space, and the level of finish you want. Because JADUs use your home’s existing structure, they’re significantly more affordable than full ADUs. We provide a detailed, no-obligation estimate after our initial site visit so you know exactly what to expect before committing.

In most Bay Area cities, yes long-term rentals are typically permitted for JADUs. Short-term vacation rentals (like Airbnb) may be restricted depending on your municipality. We’ll clarify the rental rules for your specific city during the consultation so there are no surprises later.

Some cities still enforce owner-occupancy requirements for properties with JADUs, while others have relaxed those rules. The regulations have been shifting, so the answer depends on where your property is located. We verify the current rules for your city before we start any project.

Usually not. Most JADUs share water, sewer, and electrical service with the main house, which keeps costs down and avoids the complexity of running new utility lines. If you plan to rent the unit and want to track utility usage separately, sub-metering is an option we can set up during construction.

Yes. Under California law, a single-family property can have both one JADU and one ADU. That means you could potentially have two additional living units one inside your home and one in the backyard. It’s a strategy some Bay Area homeowners are using to maximize both family space and rental income.

The most common conversions we see are spare bedrooms, attached garages, and ground-floor sections of larger homes. The ideal space is one that can easily accommodate a separate entrance from the outside and has  or can be routed to plumbing for the efficiency kitchen. During our site visit, we’ll identify the best option for your specific home.

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Start Your Bay Area JADU Project Today

A JADU is one of the smartest, most affordable investments you can make in your home. Whether you're looking to keep a parent close, create a space for a family member starting out, earn steady rental income, or just stop wasting square footage you're already paying for a JADU does it all with less cost, less time, and less disruption than any other type of construction project.

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