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North Hollywood - An Up And Coming ADU Neighborhood

Updated: Feb 15, 2023

North Hollywood is close enough to Los Angeles that residents can still enjoy doing activities in the city. However, it’s also a retreat to suburban living for its residents. The neighborhood is made up of a variety of residents, ranging from working professionals, couples, and young families to creatives, artists, and entertainers. Building an ADU (accessory dwelling unit) in North Hollywood will increase your current property value by $150,000 - $250,000.

This property in North Hollywood, CA started off as a 3 bedroom 2 bathroom 1300 square foot single-family home. There was also a detached garage sitting at the rear property line with alley access. The garage was in poor shape with multiple floods since it was built in 1951. Our client purchased the property for $650,000 in November 2019 with a plan to rent the main home and convert the existing garage into an ADU.

The owner started off by renting the main home as soon as he purchased it and started plans for the existing garage in November of 2020. Neo Builders drew their architecture plans and received ready-to-issue (RTI) in January of 2021. Unfortunately, the owner could not secure the funds to build the project and decided to hold on to the plans.

Fast forward to November 2021, 10 months after the project was permitted the homeowner called us to start before Thanksgiving and finish before New Year. This would be challenging with our current schedule but we decided to start ASAP. On January 2022 we received a certificate of occupancy (C of O)

This project includes a 400 square foot ADU a one-bedroom one bathroom.

Kitchen: 23 linear feet custom kitchen cabinets, appliances (including 30” oven, 30” microwave hood, 24” sink, 30” washer/dryer, 30” fridge). The backsplash in the kitchen goes from the counter to the ceiling and around the window. The countertop is prefabricated quartz from Brazil with white shaker panels.

Bathroom: 40 square feet, approximately 8 feet in length and 5 feet wide, tile floor to ceiling on all 4 walls, including a floating bench made from the slab in the kitchen. We finished the shower with a custom framed shower glass, toilet from delta, and a 24” vanity from home depot.

Bedroom: Approximately 110 square feet perfect for a queen bed with a 4x4 egress window. Our homeowner wanted extra storage so we created a custom closet with storage above.

Exterior: Homeowner really wanted black finishes on the exterior such as stucco, the vents, gutters, and vinyl windows. The exterior door is from HD supply. LED light fixtures. New roof shingles (presidential roof), 18,000 BTU AC condensers with 2 ductless mini splits in the bedroom and living room. Backyard space for tenant parking and fencing to differentiate the project from the main house.

Stats for this property:

  • Existing Garage: 400 sq. ft

  • New ADU: 400 sq. ft

  • Timeframe: 11 weeks

  • Cost to build: $115,000

  • Monthly Rent: $1,900

  • Property value increase: Approx +$250,000

ADU and Accessory dwelling units in North Hollywood. North Hollywood Demographics, renting ADU in North Hollywood.
Accessory dwelling units North Hollywood

Why is the market for ADU’s trending In North Hollywood?

1. The Arts District

The North Hollywood Arts District began with performance theaters for arts such as jazz music and dancing. Through the years, it was joined by new businesses, one-of-a-kind restaurants, and other performance art theaters, which have successfully drawn more visitors and local artists to the neighborhood. Even though this district started with only one theater, there are now over 20 professional theaters located in the area.

2. Pedestrian-Friendly Transportation

North Hollywood is a hub for the Los Angeles Metro. The Orange Line which runs through all of the San Fernando Valley connects with the Red Line which can reach all of the greater Los Angeles areas. The Red Line can get you downtown in less than an hour and Hollywood is only a 15-minute drive away. Residents who live near North Hollywood’s main street at Lankershim have the convenience of easy walking to grocery stores, theaters, restaurants, parks, and the Metro.

3. Affordability

ADU’s are small living units that are usually between 200-1200 square feet. Since September 2020 the state of California has made it easier for homeowners to permit and build new units. Why? Because it works. The housing shortage is finally being privatized and its single-family homeowners will finally win. Not only are homeowners looking to build more ADU’s in the area, but renters are looking for more private alternatives to apartments in which they can have their own personal space. Rather than paying rent for a small apartment, a tenant would prefer having their own small home. As a homeowner in the area, making an investment in building an ADU will pay off as tenants are ready to move in.

North Hollywood Demographics -

With a population of 74,000 people and 28,000 housing units that were built before 2010, it makes sense that ADU’s built after 2018 are so sought after due to their affordability as well as modern build.

  • Median Income - $68,000

  • Median Age - 36 years old

  • Average Home Price - $586,000

How Much Can I Rent An ADU In North Hollywood For In Today’s Market?

The average ADU in North Hollywood rents for about:

  • Studio ADU- $1300/m

  • 1 Bed 1 Bath ADU- $1500/m

  • 2 bed 2 bath ADU- $2100/m

  • 3 bed 3 bath ADU- $2800/m

ADU walkability score in Beverly Grove

The ADU walkability score is measured by walking distance from your new ADU to these attractions, the closer you are to these Beverly Grove locations the more your future tenant will pay for rent.

Ofri Peretz (818) 569 - 9947 actively looks for homes with ADU potential. She also had multiple homes sell for over asking in North Hollywood before and after the unit was built. When renting out your newly built ADU, hiring a realtor can make the process a breeze. When an agent is hired, they can create a listing for you, help check out the applicants, and manage the other aspects of renting so you don’t have to worry about it. A realtor may also increase the amount of rent you can receive monthly for your ADU.

Neo Builders Inc. is an experienced construction company with a specialty in building ADU’s. Building an ADU with Neo Builders will increase your monthly cash flow in a stress-free and organized process. Check out our Los Angeles rules and regulation page for more details.

Don’t wait, make the call today for a step towards financial freedom. Initial consultation and quotes are totally FREE of charge.

For All Your ADU Needs

NEO Builders Inc.

3940 Laurel Canyon, Studio City #394, 91604

License #: 1061134


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