Palacios Construction is a licensed general contractor (CA License #1071780 B) with hands-on experience managing ADU projects across the Monterey Peninsula — from pre-construction planning and permit coordination through final inspection.
Whether you’re adding rental income, creating space for aging parents, or building a private guest house, an ADU is one of the most practical investments a Monterey County homeowner can make. We manage every phase so you don’t have to coordinate between designers, engineers, and the building department on your own.
Our ADU construction services include:
ADUs increase property value, generate long-term rental income, and give your property the flexibility to adapt as your family’s needs change.
A detached ADU is a standalone structure separate from your home. It offers full privacy for both homeowner and occupant, making it ideal for rental income or multigenerational living. In Monterey County, detached ADUs can be up to 1,200 square feet under current California state law. This is the most popular type we build and works best when your lot has usable rear yard space.
An attached ADU shares a wall with the primary residence but has its own entrance, kitchen, bathroom, and living space. This works well on narrower lots where a freestanding structure is not practical. Because you share a wall and can often tie into existing utilities, construction costs are typically lower than a fully detached build.
Converting an existing garage into a livable ADU is usually the fastest and most cost-effective option — provided the space can accommodate a bedroom, bathroom, kitchen area, and living room. California has significantly streamlined garage conversion permitting in recent years, and Monterey County follows state law. We assess your existing garage structure before any design work begins to confirm what is feasible.
A JADU is created within the existing walls of your home, cannot exceed 500 square feet, and is typically the most affordable ADU option. It must have a separate exterior entrance but may share a bathroom with the main residence. JADUs are a practical choice for homeowners who want rental income or an in-law suite without adding new square footage to the property.
A dedicated exterior entrance is the defining feature of a functional ADU. We design and build private entry points that provide full separation from the main residence — important for both rental tenants and family members who value independence.
A self-contained kitchen is what separates a true ADU from a bedroom addition. Depending on your unit size and goals, we build full kitchens with standard appliances or efficient kitchenettes with a cooktop, compact refrigerator, and dedicated counter space.
Laundry access is one of the most requested upgrades from rental-focused ADU owners. We rough in washer and dryer hookups or install stacked units during construction — far easier and less costly than adding them after the fact.
Monterey County's marine climate means heating and cooling needs vary significantly from one side of the Peninsula to the other. We install ductless mini-split systems sized for ADU square footage — energy-efficient, quiet, and independent from the main home's HVAC.
Proper acoustic separation between the ADU and the primary residence protects privacy for both households. We install insulation and assembly methods that meet California residential noise standards — standard practice on all our ADU builds.
ADU construction in Monterey County is more involved than it appears on paper. Between the city-specific permitting environments in Monterey, Pacific Grove, and Carmel-by-the-Sea, the Monterey Peninsula Water Management District requirements for any project involving plumbing, and the older housing stock that requires careful structural evaluation before design begins — there are a lot of ways for an ADU project to go sideways without an experienced contractor managing the process.
Palacios Construction has managed ADU projects across the Peninsula. Owner Christian Palacios is personally involved in every project from the pre-construction site review through final walkthrough. That means you have a single point of contact who knows your project, understands the permit conditions, and can make decisions without a chain of communication that slows things down.
We include all soft costs in our estimates from day one — design coordination, engineering, permit fees, and applicable impact fees. There are no budget line items that appear late in the project. Every allowance is explained and documented before you sign anything, so the number you approve at the start is the number you can plan around.
If you’ve worked with other contractors on residential projects in this area, you know how rare that level of transparency is. It’s what our clients consistently mention, and it’s what separates a well-planned project from one that runs over budget and over schedule.
Browse completed ADU and garage conversion projects from across the Monterey Peninsula. Each project reflects the same hands-on approach — well-planned, professionally managed, built to last.
ADU projects are significant investments. Here's how Palacios Construction manages yours from the first conversation through final walkthrough.
Our skilled team members and meticulous preparation ensure your project exceeds your expectations. We prevent unexpected issues by devoting significant time and energy to pre-project preparation.
We promptly answer your calls and proactively reach out to you. Additionally, we post daily pictures to keep you updated on the progress of your project. We value transparency and provide you with clear information about our process, costs, and timelines. Our ultimate goal is your complete satisfaction.
We take great pride in our work. We pay attention to the smallest details and always follow through on our commitments. We stand by our work and promises, leading to excellent reviews and loyal customers. Our ultimate goal is to help you achieve your vision for your space.
Permitting is where most ADU projects slow down or go over budget. Here is exactly what the process looks like in Monterey County under current California ADU law, and how we manage it on your behalf.
Once a complete ADU application is submitted to the County of Monterey or your city’s building department, the agency has 60 days to respond under state law. If the application is incomplete, they have 30 days to notify you of what is missing. Most standard ADUs qualify for streamlined ministerial approval, meaning your project cannot be denied based on neighborhood aesthetics or design preference as long as it meets code. With a well-prepared application, most of our clients receive permit approval within 6 to 10 weeks from submission date.
Detached ADUs in Monterey County require a minimum 4-foot setback from rear and side property lines under California state law. Front yard setbacks follow your local zoning ordinance. If your existing garage or structure already sits within the setback zone, a garage conversion may be permitted without a variance. Before any design work begins, we review your survey and zoning map to confirm exactly what is buildable on your specific lot — no surprises at the permit counter.
State law fully exempts ADUs under 750 square feet from impact fees. ADUs above 750 square feet are charged proportional fees based on the size ratio to a new single-family home — not at the full new-construction rate. For most Monterey County ADU projects this means fees are either eliminated entirely or significantly reduced. We include all soft costs — permits, engineering, design, and applicable fees — in your project estimate from day one so there are no late-stage surprises.
Starting price ranges for ADU construction on the Monterey Peninsula. Every project receives a detailed estimate after an on-site consultation.
Starting At
$160k+
Starting At
$350k+
Starting At
$650k+
*Prices are averages and may vary depending on the size of your project and the materials used. You will receive an exact quote for your unique project after the on-site consultation.
Get a ballpark investment range for your project in under 2 minutes.
This is a budgeting range based on typical project costs in Southern California. Final pricing depends on your specific site, local permit fees, structural requirements, and design details — use this as a planning reference, not a formal quote. Est. Build Time reflects active construction only — plan development and permit processing are separate and typically add several months.
The most common reasons our clients build ADUs are rental income, multigenerational living, and property value. A well-built ADU on the Monterey Peninsula can generate meaningful monthly rental income given local market rents. For families with aging parents or adult children, it provides privacy and independence without the cost of assisted living or separate housing. And because ADUs add livable square footage, they typically increase assessed property value — making the investment recoup over time.
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