Thinking about building an ADU in Monterey, CA or surrounding areas? As a trusted local ADU contractor, Palacios Construction helps you unlock the full potential of your property with smart, flexible living space solutions.
Whether you’re looking to create a comfortable living area for aging parents, avoid costly senior housing, or build a detached guest house or rental unit, an ADU offers privacy, independence, and long-term value.
Our Monterey ADU construction services include:
Custom ADU design & permitting
Detached guest houses
Garage conversions
Rental-ready backyard units
ADUs not only add living space—they can also boost property value, generate passive rental income, and offer multi-generational comfort.
Not every ADU is built the same way, and not every property suits the same approach. Palacios Construction specializes in detached ADUs — fully independent structures on your existing lot — but we also build attached ADUs, garage conversions, and Junior ADUs depending on your property layout and goals.
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.
Opening the doors to your custom cabinets and vanities in your home addition or ADU gives you a unique space tailored to your needs, balancing personal style and practicality.
Imagine the pleasure of your feet meeting heated floors that soothe away the morning chill as you start your day.
Transform your layout for a refreshing change, offering freedom and fluidity that can transform your home into a spacious oasis, perfect for easy living and gathering with loved ones.
Every step into your curbless shower is like stepping into a private sanctuary of wellness, a harmonious blend of elegant design and practicality that enhances your daily showering ritual.
Immersing yourself in the serene depths of your freestanding tub, you're cradled within a bubble of calm and luxury, inviting you to surrender to the pure bliss of relaxation.
A professionally built home addition in Monterey, CA can be a game-changer—especially when your current home feels too small. As a trusted Monterey home addition contractor, Palacios Construction helps you create more space, more comfort, and more value without the need to move.
Whether you need:
A private guest room for visitors
A spacious primary suite to relax
A larger living room or open-concept layout
An expanded kitchen or dining area
Or even a second-story addition
…we work with you to design and build something that fits your style and maximizes your home’s potential.
Room additions in Monterey don’t just add square footage—they improve functionality and can significantly increase your property’s value.
There’s no need to leave the neighborhood you love. Let’s transform your house into the home you’ve always wanted.
Look through our inspiration gallery to get ideas for your home addition or ADU. Let's create the perfect design to bring your vision to life.
We understand the investment you’re making in your home and are here to help every step of the way.
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.
Elevate Your Property & Enrich Your Lifestyle With An ADU
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.
Ensuring your home addition integrates seamlessly with your house’s existing style and structure is a key aspect of our work. To achieve this, we engage in a meticulous planning process that thoroughly analyzes your current home’s architectural details, materials, and color schemes. This analysis helps us create a design for your addition that harmoniously blends with your home’s existing aesthetic.
We also invite your input and feedback throughout this process, as your satisfaction with the final result is our top priority. By carefully considering every design element, we strive to make your home addition feel like a natural extension of your beloved Monterey home.
You can rest easy knowing that we will take care of all the necessary permitting for your home addition or ADU project in Monterey. Our team understands the ins and outs of local building codes and regulations, and we’ll manage the entire permit application process on your behalf. This process includes obtaining the permits and scheduling any required inspections.
We aim to ensure your project is fully compliant, leaving you free to focus on the exciting aspects of your home transformation. So, you can expect a smooth and hassle-free building experience with us.
Determining the feasibility of a home addition for your Monterey property involves a few essential steps. First, we must review your area’s zoning regulations and building codes. These rules can dictate everything from how much additional square footage you can add to height restrictions and setback requirements.
Secondly, it’s crucial to evaluate the current infrastructure of your property, including the capacity of existing utilities like electricity, water, and sewage. Your property must be able to support the increased demand from your proposed addition, and necessary connections should be feasible without causing significant issues or incurring high costs.
By diligently examining these factors, we can confidently assess whether a home addition is viable for your property.
ADU stands for Accessory Dwelling Unit. An ADU, also known as a granny flat, in-law unit, or secondary suite, is a self-contained living unit attached to or located on the same property as a primary single-family home. It is a separate and independent living space with its entrance, kitchen, bathroom, and sleeping quarters.
ADUs provide additional housing options within existing residential areas. They can be created by converting existing spaces like basements, garages, or attics or by constructing new structures on the property, such as detached cottages or apartment-style units.
Accessory Dwelling Units (ADUs) have numerous advantages beyond merely expanding your Monterey property’s square footage. A few of the benefits are listed below:
In summary, an ADU is more than an addition; it’s a versatile solution that adjusts to your lifestyle and enhances your property’s value.
