In today’s article, we shall be answering some common questions asked by our readers regarding building guest house in your backyard including, “how much does it cost to build a guest house in the backyard?”
How Much Does It Cost To Build a Guest House In The Backyard?
According to HomeAdvisor, the national average to build a guest home in the backyard falls around $13,075 and is $100 to $200 per square foot, so a 600-square-foot one-bedroom guest apartment would cost $6,000 to $60,000.
Cost to Build a Guest House by Size
| Guest House Size | Cost Range: Modular |
| 600 – 700 square feet | $45,000 – $65,000 |
| 700 – 800 square feet | $49,000 – $88,000 |
| 800 – 900 square feet | $56,000 – $99,000 |
| 900 – 1,000 square feet | $62,000 – $110,000 |
On a per-square-foot basis, constructing a tiny guest house is no less expensive than constructing an entirely new home. This can be comparable to the cost of certain other higher-end guest lodging options.
For example, if you’re preparing to build a prefab backyard guest house with bathroom, this might be the most affordable backyard guest house you should consider building on your property.
A guest house is a luxury only the wealthy can afford, but it’s an affordable home improvement project.
Buying a little house on Amazon and putting it in the backyard isn’t enough.
Even if you buy a tiny modular unit, guest houses require careful design, a foundation, insulation, and building permits.
What You Need To Know To Build A Backyard Guest House?
There are many ways to install an ancillary housing unit to your property, but all will cost you thousands of dollars and months of your time.
It will be worth it when you welcome your first guests to their suite.
You have several choices; here is an analysis of the benefits and drawbacks associated with each option.
Custom Build
Building a guesthouse from scratch is versatile, but expensive and time-consuming. A modest guesthouse costs as much as a new home per square foot.
A 600 square foot one-bedroom guest apartment would cost $60,000, according to HomeAdvisor.
A 150 square foot hut with sleeping accommodations could cost $15,000, but it rarely pays off.
To maximize your investment, experts recommend creating a 500-square-foot guest house. More expensive homes cost more to build, with material quality second.
Labor can account for up to 60% of a new building’s cost. Weather and location determine how quickly a guesthouse is built. Design, permits, and contractor bidding add 6 – 10 months to the project schedule.
Convert an Existing Structure such as a Shed or Garage
Building a new detached guest home might be expensive, but converting an existing property can save money.
Turning a garage or shed into a guest suite is a cheap alternative to a normal remodeling. It costs $5k. A garage or shed might provide a cheap guest suite.
HomeAdvisor estimates this improvement costs $13,075.
Windows, insulation, drywall, a ceiling, and flooring make up the bulk of the price (plus labor), but a full apartment with a bathroom and kitchen costs much more.
Budget:
- $10,000 – $15,000 for one window, ceiling, flooring, heating, cooling, insulation, and furniture
- A bedroom with bathroom costs $3,000, and $1,800 for plumbing.
- $15,000-$30,000 for one bedroom, living room, kitchen, and bath
Adding walls or installing kitchen or bathroom facilities could add five months.
Permits add two weeks, but simple jobs are faster.
Converting a Shed
Creating a guest room by converting a shed can be cost-effective. Sheds are one of the cheapest options to create private guest lodging. Choosing the sort of guesthouse shed is difficult. They have diverse colors and styles. Before buying a shed, consider how often and how many guests will use it.
Turning a shed into a guesthouse might be economical. From $6,000 to $21,000. It’s easy to move the shed into the backyard. The cheapest shed option is a bed.
Electricity and plumbing require contractors. Hiring plumbers and electricians won’t be the bulk of the charges, but they will add to the budget.
Insulation is also needed to transform a shed into a guest house. The shed will feel like a room with shed heating different options.
Converting a Garage
Converting a garage into guest quarters is another option. Sometimes it costs about the same as converting a shed, but sometimes it’s more or less. Costs average $6,000 to $19,000.
Cost to convert a garage depends on size and amount of professional aid. Insulate the floor and walls. Depending on your garage floor, this may raise its height. This works for folks with several garages or who don’t drive.
Converting a detached garage into a guest room is preferable. The person converting the garage choose whether the garage door will be part of the final conversion or changed into a wall with a conventional door.
Because of existing walls and a foundation, converting a garage is cheaper than building a tiny house or expansion.
Buy Ready Made Guest House
Some modular structures are sold for as low as $5,350, although that price rarely represents the total cost. Plus, there’s more to these constructions than ordering one online and setting them up (much as we wish that were the case!).
First, prepare the building site. This includes leveling, grading, and building a foundation. Any garden shed larger than 160 square feet needs a stronger foundation to avoid sinking. This would be a concrete slab ($4 per square foot) or pier and beam ($5 per square foot). A 600-square-foot cottage foundation costs at least $2,400 but varies substantially. HomeGuide estimates this size foundation costs $3,846.
Insulation is another important factor. The popular Amazon small house lacks insulation, so it’s only ideal for mild regions. Insulating this model would take as much time and work as building a home from scratch, a tiny home builder told Realtor.com. HomeAdvisor estimates a 500-square-foot area will cost $145 to $200 plus $300 to $600 for labor.
Several companies sell prefab sheds that are better for overnight guests than Amazon.
Studio Shed: A 64-square-foot Signature Series room costs $10,500. A 160-square-foot insulated single room costs around $21,000, while a 364-square-foot residence with a bathroom and kitchen costs at least $70,000. All prices exclude the foundation, which buyers must pay with their contractor.
Modern Kwik Room shell kits start at $5,000 for the lowest size. Installation can be done in a few days, but many critics say it can take a year.
The uninsulated Writer’s Haven home simply needs 6-8 inches of crushed gravel. The 132-square-foot inside costs $3,944 for the frame, $6,526 for the pre-cut weather-proof kit, or $9,114 fully constructed. Two adults will need 34 hours to assemble it.
Using a Camper
Camper vans make easy guest housing spaces. A camper van is self-sufficient. A camper or RV won’t provide the space a guest may need for a prolonged stay. Guests often prefer staying in the main house.
Choosing the appropriate camper is difficult. Sizes and pricing vary. A camper costs $10,000 – $300,000. Power is a consideration when using a camper as guest housing.
A home may not be able to power a large RV or camper. Once the camper is powered by the house, a guest may find they can’t turn on the air conditioning.
Guest House Kits
Almost anywhere sells guest house kits. These are basic ways to build a backyard expansion. Kits can cost as much as a shed. Most sites that sell pre-made house kits also offer installation.
Some kits cost $5,000 to $30,000. Tiny houses have become popular as a way to live lightly, making them ideal for guest rooms. These house kits include practically everything.
These house kits vary in style and size. Some resemble a wood cabin, while others are modern. Multiple brands advertise these housing kits. They work as a shed, storage space, craft space, or work space.
You can order a DIY backyard guest house or home office. Kits from Jamaica Cottage Shop cost $3,944 and include all supplies except roofing and foundation.
Building an ADU
Building a guest house is another way to provide a guest area. ADUs take as much time and money as full-sized homes. ADUs, or granny flats, can cost around $200 per square foot.
The whole cost is $40k – $150k. This is comparable to other high-end guest lodging alternatives. An ADU is the most expensive choice, but it assures guests a great area.
Creating a backyard guest living room offers several alternatives. Only the homeowner may decide which design and price is ideal for them and their guests.
Accessory Dwelling Unit
On a single-family residential property, a guest house, also known as an ADU, is a secondary housing unit.
For the best value, most experts recommend building a guest home with the maximum permissible square footage for an ADU or at least 500 square feet of space. This will set you back $50,000 to begin with.
Tiny Home
Build a guesthouse, small house, in-law suite, or garden cottage within your budget by planning ahead.
RVs and mobile homes are other compact dwellings on wheels can save money and time. You can turn an RV into a tiny home for $10,000.
Modular Guest House
A detached smart modular home is a frequent and economical alternative for a growing family, creative workspace, or work at home.
Most 600 to 1500 square foot modular guest houses contain one or two bedrooms, a living room, and a kitchenette or dining space. You can buy and have them delivered online. Only the foundation is built on-site.
$4 to $7 per square foot for a normal foundation. Modular cabins cost $6000.
Shipping Container
You can create a gorgeous practical guest house out of a shipping container for $3,000 to $5,000 and a lot of hard work and attention, then compare it to a prefab.
Bump Out
Some people prefer adding on to their existing home. ADUs can be converted from existing houses, ancillary structures, or new, self-contained constructions.
A bump-out or prefab expansion costs $3,000.
Single Room Cabin
A 150 square foot single room cabin with a sleeping area may cost $15,000, but it’s rarely a worthwhile investment.
Frequently Asked Questions
What Is A Good Size For A Guest House?
A good size for a guest house is between 600 and 1,500 square feet.
Guest houses often range in size from 600 to 1,500 square feet, which is more than enough space to give you a wide variety of alternatives on how you’ll put the space to use.
Can I Build a Guest House in my backyard?
Accessory dwellings, such as guest houses, are not permitted in every area. Check your county’s zoning ordinances first.
To construct a guest house, you may need to seek a permit.
It’s time to plan your build after you’ve completed any necessary permit paperwork.
Is It Worth The Cost To Build A Guest House?
A guest house may be a terrific investment, whether you’re intending on utilizing it for family visits, renting it out for extra money, or expecting to improve the value of your home.
You could even live in the guest house and rent out the main house to make even more money.
Starting Cost
Building a guest house can cost between $3,000 and $50,000, depending on style and type.
A 150 square foot cabin with one bedroom may cost $15,000, but it rarely provides a significant return on investment. Adding a bump out to your home or converting an existing structure can cost as low as $3,000.
Can I Get A Loan To Cover The Cost To Build A Guest House?
You can get a head start on the construction of your guest house using one of the many available finance alternatives.
Construction Loan
Construction loans are available. A construction loan is a one-year loan.
This financing may need interest payments as you build your guesthouse. Or, the loan may require full payment at the end of construction.
Riskier construction loans may have higher interest rates.
HELOC
HELOC is another possibility. HELOCs use your home’s worth as collateral and work like credit cards. You can use HELOC funds for five to ten years if you keep within your limit. After this period, you pay interest on any amount.
Cash Out Refinance
A cash-out refinance replaces your existing mortgage with a new one that’s larger. You can utilize the difference to build a guesthouse. Cash-out refinances have higher interest rates.
If you’re unsure about creating a guest house, see an agent. A qualified agent can tell you about the local housing market and guest house demand.
Your Realtor can assist you determine how much money, time, and energy an ADU investment is worth when you sell your property.
How Much Does It Cost To Build A Small Guest Room?
It costs approximately $100 per square foot to build from the ground up. Building a small guest house from the ground up will cost you a minimum of $50,000.
How Long Does It Take To Build A 600 Square Feet House?
A 600 square feet house took around four months before it was completely finished after it was started.
It can rise in a month if there are no weather issues. It could take 6–9 months to build a custom home with a lot of fine stonework and custom cabinets on a challenging lot.
What Is The Average Cost Of A Casita?
Construction costs for Accessory Dwelling Units (ADUs) — the formal word for a casita – range from $100 to $500 per square foot. As a result, the cost of constructing a casita can range from roughly $40,000 for a little cabin to more than $500,000 for a modest suite.
Does Having A Guest House Increase Property Value?
A Guest house does increase the value of your property. The nicest aspect about a guest house is that it adds value without requiring you to expand your existing property, and it is far less expensive.
While many home purchasers like the concept of using rental money to help pay down a portion of their mortgage, a record number of people are looking for real estate with an in-law room for family members to use.
What Is The Difference Between A Guest House And A Casita?
A Casita is a separate dwelling that can be used as a guest house, studio, or home office. An in-law suite can be found on the lower level, first floor, master bedroom level, and even the loft of the main house.
Building a casita in the backyard and construction of a guest house might take anywhere from four months to a year, depending on the weather and site conditions.
How Much Does It Cost To Build A 1000 Sq Ft Guest House?
A 1000 square foot guest house could cost $100,000, based on a $100 to $200 per square foot average.
How much value does a guest cottage add?
Your separate guest cottage is a line-item modification. This could add $10,000 to $30,000 to your selling price. Hence, adding a guest cottage to your property increases its value.
How much does it cost to build a tiny house?
Depending on the features you pick, a tiny house can cost as low as $8,000 or as much as $30,000 – $60,000, and above $150,000. Building a tiny house is cheaper than buying one prebuilt, but don’t let that fool you.
What is the cost of tiny homes
According to a recent poll, the average cost of a do it yourselfer building their own small home is roughly $23,000. The price of a tiny house per square foot varies, but you can expect to pay around $150 per square foot on average.
Can I make a storage shed into a guest house?
A storage shed can be converted into a guest house for visitors. To be functional and comfortable, various considerations are needed to transform a storage shed into a guesthouse.
Converting a shed into a guest house can be difficult; consider hiring help. A contractor will receive final plans from an architect. Before building, you’ll need permits. If your design includes electricity or plumbing, get a pro.
Is it cheaper to build your own storage shed?
Yes, building your own shed is less expensive than buying one that has already been built.
That is, if you have all of the necessary tools to construct the shed. The shed will usually just require a few specialized tools to construct.
What is the cost of a granny flat?
A one-bedroom granny flat should cost between $120,000 and $140,000, including site expenses, design and approvals, construction price and standard inclusions, and is fully turnkey and ready to move in.
What is the average size of a guest house?
The average size of a guest house is between 600 and 1,500 square feet, which gives you a lot of area to choose from when it comes to how you’ll use it.
What qualifies as a guest house?
A kitchen is not permitted in a guest house, and just the most minimal bathroom amenities are needed. This is due to the fact that a guesthouse is meant to serve as a temporary home for visitors of the main household.
A specific kind of ancillary living unit was created to fit in the space between these two form aspects.
How many rooms should a guesthouse have?
A guest house is a type of commercial lodging facility with four to sixteen bedrooms whose main source of income is the provision of lodging for tourists. In particular when there are no nearby restaurants that serve dinner, guests are provided with breakfast and dinner.
Conclusion
Costs for this kind of remodeling of guest house in the backyard range from $6,000 to $21,000, with the national average coming in at about $13,075, according to HomeAdvisor.
Backyard guest houses have historically served a variety of functions.
They effectively address this issue by providing older people with a place to live while remaining close to their families who live in the principal residence.
When the homeowner’s family no longer requires the guest house, they now have an opportunity to invest.
After all, these are genuine homes with all of the standards of any single-family home construction project. Expect to invest between $100 and $500 per square foot if you want to create a custom, freestanding guest house.
Final Thoughts on How Much Does It Cost To Build a Guest House In The Backyard
A tiny guest house is no less expensive than building a new home in terms of cost per square foot.
So, how much does it cost to build a guest house in backyard? A 600-square-foot one-bedroom guest apartment would cost around $60,000 to construct based on HomeAdvisor’s national average of $100 to $200 per square foot.
Useful Resources
Want to Build a Backyard Guest House? Here’s What to Know (link)