ADU Construction in Pebble Beach

Why Pebble Beach is a Strong Market for ADU Construction

Pebble Beach homeowners are increasingly building ADUs for extended family, home offices, and rental income. The area’s strong property values and luxury standards make ADU investment a sound decision. The Monterey Peninsula’s resort-style character and appreciation for architectural quality make it a distinctive market.

Custom Home builds ADUs in Pebble Beach with the same two-phase design-build process we use for custom homes. You see the complete design in 3D and receive itemized pricing before any construction begins.

Types of ADUs We Build in Pebble Beach

Detached ADUs

A standalone structure in your backyard, typically 400-1,200 sqft. Detached ADUs offer the most privacy and design flexibility. They work well for rental units, home offices, or multigenerational living. Construction costs in Pebble Beach typically range from $375K to $650K.

Attached ADUs

Built as an addition to your existing home, sharing at least one wall. Attached ADUs are typically more cost-effective than detached units since they share structural elements with the main house. They are a good fit for family members who want proximity while maintaining separate living spaces.

Garage Conversions

Converting an existing garage into a living space is the most affordable ADU option in Pebble Beach, starting from $200K. Since the structure already exists, you save on foundation, framing, and roofing costs.

Pebble Beach ADU Permitting

Pebble Beach requires dual approval for all construction projects. Monterey County’s Housing and Community Development department issues building permits, while the Pebble Beach Company’s architectural review committee evaluates design, materials, and site planning. The combined review process can take 4 to 8 months for custom homes. Custom Home coordinates both reviews simultaneously, preparing documentation that meets the requirements of each authority and minimizing overall approval timelines.

Custom Home manages the entire ADU permitting process in Pebble Beach, preparing plans that meet local requirements for efficient review and approval.

ADU Rental Income Potential in Pebble Beach

Pebble Beach’s rental market supports strong returns for ADU owners. Estimated monthly rental rates:

• Studio/1-bedroom (400-600 sqft): $2,800-$3,300/month
• 1-bedroom (600-800 sqft): $3,200-$4,200/month
• 2-bedroom (800-1,200 sqft): $4,000-$4,500/month

At these rates, many ADU investments pay for themselves within 7-12 years through rental income alone, not counting the property value increase that a permitted ADU provides.