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Top Rated Contractor for Custom ADU in Morgan Hill, California

Featured Project

Located in Pleasanton, this detached accessory dwelling unit measures up to 440 square feet. It has a kitchen, bathroom, bedroom, living room, walk-in closet, and a utility room. 

With proper design, it’s amazing how we’re able fit all these amenities in this secondary dwelling unit. We have to say that it’s even more fulfilling to have a custom-built ADU with personalized designs and layouts that fit your lifestyle needs. One interesting thing about this ADU is the addition of a patio just outside the ADU since Christina loves to cook and gather with friends.

Watch this video to take a look inside this beautiful custom-built ADU:


Cristina has been living with her mother for a year and a half. After some time, she realized she wanted to have her own space so they talked about building an Accessory Dwelling Unit (ADU).

The thought of building a custom-built ADU in Pleasanton was a win-win solution because she can finally have a space of her own and, in the future, she could rent it out to tenants, giving her additional source of passive income.


Your satisfaction is important to us. We commit to work efficiently to meet or even exceed your expectations. What this video as Christina shares with you her experience in building her own top notch detached ADU from start to finish.

About ADU Builders Group

At ADU Builders Group, we are on a mission to revolutionize how homeowners in the Bay Area expand their living spaces. Our core dedication lies in helping these homeowners effortlessly build their Accessory Dwelling Units (ADUs) by streamlining every step of the process. We provide personalized solutions and complete ADU services in Morgan Hill and the rest of the Bay Area.


With the rising need for additional living space, our company offers a timely solution that not only increases property value but also supports multi-generational living and generates potential rental income.


Our Expertise

We specialize in creating customized livable spaces tailored to fit the needs of every homeowner. Our product range includes:

ADU (Accessory Dwelling Unit)

Independent living units equipped with their own sleeping, cooking, and bathroom facilities.

Attached ADUs

These units share a wall with the main home, perfect for those looking to maintain close proximity to their additional living space.

Detached ADUs

Stand-alone units that offer privacy from the main home, ideal for renters or as guesthouses.

Junior ADUs (JADUs)

Smaller living units converted from existing spaces within the main home, such as bedrooms or garages, offering a compact but fully functional living solution.


Why Choose Us?

Our commitment to excellence and customer satisfaction is reflected in our unique selling points:


3 Years Service Warranty with Complimentary Annual Inspection

We stand behind the quality of our work with a 3-year service warranty on all our custom-built ADUs, ensuring peace of mind for our clients. To further assure the durability and maintenance of your investment, we provide a complimentary annual inspection, making sure your ADU remains in peak condition. This service warranty is on-top of 10-year standard warranty on structural components.


Streamlined Process

Understanding the complexity involved in building a custom-built ADU, we've refined our processes to offer an effortless experience. From initial design consultation to final walkthrough, our team of experts - from project managers, architects, builders, to contractors -  is with you at every step, ensuring a seamless transition from vision to reality.


Customizable Solutions

Recognizing that every homeowner's needs are unique, we offer fully customizable ADU solutions. Whether you're looking for a cozy JADU for family or a spacious detached ADU for rental income, we adapt our designs to meet your specific requirements.

Our Commitment


At ADU Builders Group, we’re more than just home builders building custom ADUs. We’re about creating valuable, functional spaces that enhance lifestyles and bring visions to life. With a keen focus on innovation, quality, and customer satisfaction, we are dedicated to transforming the way the Bay Area thinks about home expansion.


Contact us today by filling out the form below to take the first step towards building your own custom-built ADU.

How to Build an ADU in Morgan Hill, California

Building a custom-built ADU in Morgan Hill, California can be summarized into a seven-step process:

  1. Get Started

  2. Learn The Rules

  3. Set your Budget

  4. Design your ADU

  5. Apply for Permits

  6. Build your ADU

  7. Rent it Out or Move It

How to get started with ADU?

You can start with your ADU by thinking about what you want and asking yourself these questions:

  • Who am I building this for?

  • What are the amenities I need to add into this project to support my family members, my tenant, or my own needs?

  • How can it improve and support my lifestyle?

If you’re looking for an inspiration, you can go check your local neighborhood for anyone who owns a casita, visit online community groups for ADU on Facebook and other social media channels, check these floorplans compiled by Santa Clara County ADU, search for “ADU contractor near me” and check portfolios of local ADU builders in your area, or simply consult with us at ADU Builders Group by filling out the form below.


What are the Standards and Rules for Building an ADU in Morgan Hill?

Here’s a compilation of answers to frequently asked questions about the standards and rules for building an ADU in Morgan Hill.


What zones are allowed to build an ADU in Morgan Hill?

Accessory dwelling units are permitted in any zoning district where single-family or multifamily dwellings are a permitted land use. JADus, on the other hand, are permitted in any zoning district where single-family dwellings are a permitted land use.


What is the allowable maximum size for ADUs in Morgan Hill?

The maximum allowable size for ADUs in Morgan Hills can be up to 1,200 sq. ft. depending on the zoning district. However, an attached accessory dwelling unit shall not exceed 50 percent of the existing primary dwelling.

  • RE 10: 1,200 sq. ft.

  • RE 2.5: 1,000 sq. ft.

  • RE 1: 900 sq. ft. (1 bedroom), 1,000 sq. ft. (2 or more bedrooms) 

  • All other zoning districts: 850 sq. ft. (1 bedroom), 1,000 sq. ft. (2 or more bedrooms)


Additionally, the maximum floor area of junior accessory dwelling units or JADU in Morgan Hill shall be five hundred square feet.


How many ADUs are allowed on your property in Morgan Hill?

No more than one accessory dwelling unit and no more than one junior accessory dwelling unit (JADU) is permitted on a single lot with a single-family dwelling. Multifamily dwelling structures may have no more than one accessory dwelling unit or up to twenty-five percent of the existing multifamily dwelling units, whichever is larger.


What is the maximum allowable height for an attached ADU in Morgan Hill?

An attached accessory dwelling unit in Morgan Hill shall be limited to twenty-five feet (25 ft) in height or the height limitation of the applicable zoning district, whichever is less.


What is the maximum allowable height for a detached ADU in Morgan Hill?

A detached accessory dwelling unit that does not comply with the side and rear setbacks of the applicable zoning district shall be limited to sixteen feet (16 ft) in height, unless any of the following applies:


  1. On a lot within one-half mile walking distance of a major transit stop or a high-quality transit corridor, as defined in Section 21155 of the Public Resources Code, a detached accessory dwelling unit up to eighteen feet in height, and an additional two feet in height to accommodate a roof pitch, is permitted.

  2. On a lot with an existing or proposed multifamily, multi-story dwelling, a detached accessory dwelling unit up to eighteen feet in height is permitted.

What are the required setbacks for ADUs in Morgan Hill?

A minimum setback of four feet from the side and rear property lines is required for an accessory dwelling unit.

However, no setback is required for an existing accessory structure or living area as defined by Government Code Section 65852.2 that is converted to an accessory dwelling unit. Moreover, No setback is required for an accessory dwelling unit constructed in the same location and the same footprint as an existing accessory structure.


An attached or detached accessory dwelling unit shall comply with the front setback requirements of the applicable zoning district. If an attached or detached accessory dwelling unit of at least eight hundred square feet in size is not permitted due to front, side, and rear setback requirements, then an attached accessory dwelling unit may be permitted within the front setback that complies with Section 18.92.080 (Intersection Sight Distance).


Are there any lot or location restrictions for ADUs in Morgan Hill?

Generally, accessory dwelling units in MOrgan Hill are subject to the same requirements that apply to primary dwellings on the same lot in the applicable zoning district except as specified in this section.


What are the parking requirements for ADU in Morgan Hill?

  1. On-site parking spaces is not required for junior accessory dwelling units.

  2. Except as specified in this subsection, on-site parking for accessory dwelling units shall comply with all parking requirements in Chapter 18.72 (parking and loading).

  3. On-site parking spaces for accessory dwelling units may be covered or uncovered and may be located within the front, side or rear setback areas (may be tandem).

  4. No off-street parking is required for an accessory dwelling unit in the following cases:

    1. The accessory dwelling unit is located within one-half mile walking distance of public transit.

    2. The accessory dwelling unit is located within a National Register Historic District or other historic district officially designated by the city council.

    3. When an accessory dwelling unit is constructed within the primary residence or an accessory structure.

    4. When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit.

    5. When there is a car share vehicle pick-up/drop-off location within one block of the accessory dwelling unit.

  5. When an existing garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit, or converted to an accessory dwelling unit, the on-site parking spaces are not required to be replaced.


What are the other requirements for ADU in Morgan Hill?

The design of accessory dwelling units in Morgan Hill shall be compatible with the design and scale of the primary dwelling (using substantially the same landscaping, color, materials and design on the exterior) and the general character of the neighboring residential properties.


What are the Owner-Occupancy Rules for JADUs in Morgan Hill?

For ADUs in Morgan Hill, the owner must occupy either the JADU or the primary house.


Is a Deed Restriction required for accessory dwelling units in Morgan Hill?

Yes, a Deed Restriction is required. Before obtaining a building permit for an accessory dwelling unit in Morgan Hill, the property owner shall file with the county recorder a declaration of restrictions containing a reference to the deed under which the property was acquired by the current owner.


What are the renting regulations for ADUs in Morgan Hill?

Short-term rentals (less than 30-days) are prohibited.


What are the unique requirements or common errors for ADUs in Morgan Hill?

  1. ADU is too large.

  2. ADU doesn't meet setbacks.


What are the fees for ADUs in Morgan Hill?

  • For ADUs less than 750 sq ft, impact fees shall not be imposed

  • For ADUs of 750 sq ft or more, impact fees shall be charged proportionately in relation to the square footage of the primary dwelling unit.


You may refer to Local Rules & Contacts - Santa Clara ADU , then select your city to check for the latest rules in your area. Check with your local city as well to assess your property and ascertain its suitability for an ADU. Determine the type of ADU you can build based on your local zoning laws and the physical characteristics of your property.

How much does it cost to build an ADU in Morgan Hill?

For custom ADUs, the estimated cost per square foot can range from $450 - $500. You can start planning your budget using this estimate. You may also contact us for a more detailed quotation by filling out the form below. 


You may also be interested to look into financing options.

How to finance an ADU in Morgan Hill?

To finance your ADU, you have several options from loans, HELOC, to grants.



Several loan options exist for financing an ADU project. A home equity loan, for instance, allows you to borrow against the equity you've built up in your home. Another alternative is a construction loan, which is a short-term loan that covers the cost of construction. Once the construction is complete, the loan can either be paid off or converted into a standard mortgage.


Home Equity Line of Credit (HELOC)

Similar to a home equity loan, a HELOC also lets you borrow against your home's equity. However, it works more like a credit card, where you have a line of credit you can draw against as needed.



In certain situations, grants may be available for ADU construction. Some local and state programs offer grants, especially targeted at homeowners looking to build ADUs for low-income renters or seniors. It's worth researching local initiatives and programs in your area. The CalHFA 40k ADU Grant is one notable grant to look into.


Do you have financing options?

Yes, we partner with reputable finance companies to help our clients build their ADU as soon as possible.

How to Design your ADU?

You can start by getting some inspiration then hiring a professional architect to lay out your vision for you. It would even be better to look for a reputable local ADU contractor in your area that offers both design and build services.


Discuss your initial design with the local Planning staff. After revisions, finalize your design and have your contractor prepare the plans for permitting.


How to find the right local adu contractor near me in Morgan Hill?

You can do a Google Search for the keyword “adu contractor near me” or get referrals from your friends or local community in Morgan Hill CA. Then go on checking their credentials, licenses, and insurance. Review their portfolios and ask for references. Get multiple quotes and compare. Prioritize clear communication and trust your instincts.


Do You Need a Permit for an ADU in Morgan Hill?

Yes. Start by confirming application requirements with your local staff. Then, submit your application online or in-person and pay any required fees. Staff will review your application within 60 days, and often sooner. Revise your application if needed. Staff will tell you the best way to be in contact, likely via email. Generally, outstanding fees are due before your permit is issued.  


How to Build your ADU in Morgan Hill?

The best way to do it is by working with a reputable contractor in Morgan Hill like ADU Builders Group. We’ll handle everything you need for your ADU projects in Morgan Hill, from design to moving in. We believe that in every successful project, the key is effective communication. That’s why, we’ll regularly update you with the progress of your project for your peace of mind.


Rent it Out or Move In 

After passing the final inspection, it’s ready for move-in! A bit of landscaping would be advisable if you prefer to beautify and add more personality to your property. Enjoy your new ADU! 



Check out this overview of the entire ADU process prepared by the Santa Clara County ADU.

What is an Accessory Dwelling Unit?

ADUs are self-contained secondary living units that share the same lot as a primary residence. They can be either attached or detached from the primary residence and are often smaller in size. An ADU typically has its own entrance, kitchen, bathroom, and living space. It can come in different forms such as a basement apartment, converted garage or attic space, or a separate building on the property.

ADU is also sometimes referred to as one of the following depending on their uses or for whom it is built:

  • granny flats,

  • in-law suites,

  • backyard cottages,

  • secondary suite,

  • secondary dwelling unit, or

  • casita.

Whatever people choose to call it, the primary purpose of ADUs,both prefab and custom-built, is to provide additional housing options for homeowners. They can be used for various purposes such a

  • accommodating aging parents,

  • separate living space for adult children, or

  • source of rental income.




Rising Demand of ADUs in California

California, known for innovation and opportunity, attracts dreamers and visionaries from all over the world. However, behind its successful appearance, there is a growing housing crisis that has been getting worse for years.


Despite its technological advancements, cultural diversity, and economic prowess, the state faces shortage of affordable housing. Factors contributing to this housing shortage are population growth, limited construction, strict zoning rules, and high real estate prices. This makes it difficult for average earners to find affordable homes. In the face of this crisis, ADUs have emerged as a promising solution.


From 3,163 ADUs built in 2018, this number has risen to 13,439 in 2022, indicating a 325% increase in the number of ADUs built. These data are based on a report from UC Berkeley’s Center for Community Innovation. Since then, the concept of accessory dwelling units (ADUs) has been continuously gaining popularity in the housing market.



What are the Benefits of having an ADU on your Property?

Having an ADU on your property can offer several benefits to you such as providing an opportunity to earn extra income by offering it as a rental property or allowing you to keep your families closer together while still having a sense of privacy and independence. Custom-built ADU offers a convenient housing option for aging parents, adult children, or guests.


Moreover, adding an ADU can potentially increase the overall value of your property.


ADUs can help address housing shortages as well by providing more affordable housing options in high-demand urban areas. They offer a smaller, more affordable alternative to traditional single-family homes. For individuals or families who cannot afford a traditional single-family home, ADUs are considered as a more affordable housing option.


ADUs can serve various purposes, including a rental unit, home office, guesthouse, or even a space for aging in place. The flexibility allows homeowners to adapt the space to their changing needs over time. That’s how you can benefit from building an ADU on your property.


What are Different Types of ADU?

When it comes to accessory dwelling units (ADUs), there are several different types that cater to diverse needs and property structures. Let's discuss the four types of ADUs mentioned in the ADU Handbook published by the California Department of Housing & Community Development.


Attached ADUs

Attached ADUs are an extension or addition to the primary residence. They are physically attached to the main building and might involve converting a garage or adding a new structure onto the existing house. This type of ADU is beneficial for those homeowners who want to maintain a direct connection between the main house and the ADU.


​Detached ADUs

Detached ADUs, on the other hand, are separate structures that are independent of the primary residence. These are often constructed in the backyard and can offer a greater degree of privacy compared to attached ADUs. Detached ADUs are a great option if your lot has ample outdoor space.


Converted Existing Space ADUs

Converted Existing Space ADUs involve transforming an already existing part of the home into a self-contained living space. This could mean converting a basement, attic, or even a section of the house into an ADU. This type of ADU is a cost-effective choice as it utilizes existing structures.


Junior ADUs

Junior ADUs (JADUs) are smaller in size, typically up to 500 square feet, and are located within the walls of the primary dwelling. They include their own separate entrance, as well as an efficiency kitchen. JADUs offer a more compact, yet self-sufficient, living arrangement.


Each type of ADU has its unique set of advantages and considerations. It's essential to assess your specific needs, local regulations, and the available space on your property before deciding on the most suitable type of ADU. Whether it be an attached ADU for easy accessibility, a detached ADU for added privacy, a converted existing space ADU for an economical solution, or a junior ADU for a smaller-scale dwelling option, you can find a variation that fits your needs.

Fun Facts About Morgan Hill

In the undulating hills and lush valleys of California’s Santa Clara County, nestled against the picturesque Santa Cruz Mountains, sits the charming city of Morgan Hill. Known for its Mediterranean climate, rolling vineyards, and a sense of community that's as rich as its historic roots, Morgan Hill is a destination rich in both history and contemporary charm. Whether you're a local looking to deepen your connection to this vibrant city or a prospective homebuyer considering the move to its welcoming neighborhoods, discovering the unique qualities of Morgan Hill can cement your love for this idyllic locale.


Here's a deep-dive into what makes Morgan Hill a true gem of the Golden State.


Historical Tidbits

Roots in the Ranches

Morgan Hill's history is deeply entwined with California's Spanish and Mexican past. Originally part of the sprawling Rancho Santa Teresa lands, the area developed around the thriving cattle business. A notable landmark is the historic Villa Mira Monte, an Italianate-style mansion that houses the Morgan Hill Museum. The story of Morgan Hill is inextricable from its ranching past, with many local families tracing their lineage back to these early settlers.


The Locomotive Legacy

Morgan Hill’s connection to the railroad industry is also a prominent part of its past. The Southern Pacific Railroad played a crucial role in the city's development, with the Morgan Hill Train Depot serving as a connecting hub. Today, the historic depot is a quaint culinary stop, beautifully restored, and a nod to the city's transportation heritage.


Nature's Bounty

Uvas Reservoir

The city boasts stunning natural backdrops, including the Uvas Reservoir, a serene expanse of water surrounded by rolling hills. Residents and visitors can hike along the 5.5-mile Uvas Canyon Waterfalls Trail, which promises breathtaking vistas and a chance to witness waterfalls cascading down the mountains during the rainy season.


Henry W. Coe State Park

For outdoor enthusiasts, the adjacent Henry W. Coe State Park is a mecca of wilderness. Covering over 87,000 acres, it's the largest state park in northern California and offers over 250 miles of trails, perfect for hiking, mountain biking, and horseback riding. The park's diverse landscape is a remarkable blend of oak-studded hills, expansive grasslands, and rugged canyons, home to an impressive variety of flora and fauna.


Culinary Delights

Quaint Eateries and Wineries

Morgan Hill's culinary scene is a delightful mix of farm-to-table fare and internationally-inspired cuisine. The city is also known for several award-winning wineries, such as Guglielmo Winery, and hosts the Morgan Hill Wine Stroll, a popular event for connoisseurs. For a quiet afternoon, explore the offerings of downtown Morgan Hill where charming cafes and boutique wineries beckon.


Annual Taste of Morgan Hill

An annual highlight is the "Taste of Morgan Hill" food festival that showcases the community's diverse culinary offerings. The event is a celebration of local chefs, farmers, and producers, offering attendees the opportunity to sample a wide array of flavors that reflect the area's rich agricultural heritage.


Community Spirit

Morgan Hill Mushroom Mardi Gras

One of the most anticipated events in Morgan Hill is the annual ‘Morgan Hill Mushroom Mardi Gras’. The festival is a colorful celebration of the region's agricultural prowess, particularly its renowned mushroom crop. It features live entertainment, a parade, and, of course, a variety of dishes made with the local fungi.


Community Organizations

The City of Morgan Hill is home to a plethora of community organizations devoted to the arts, sports, education, and the environment. The Morgan Hill Community and Cultural Center serves as a hub for these community activities, offering programs, classes, and events that enrich the lives of its residents and promote a strong sense of belonging.


Real Estate Insights

A Suburban Haven

Morgan Hill's real estate is a mix of historic homes, traditional ranches, and modern subdivisions. The city's diverse neighborhoods offer something for everyone, from the close-knit communities of downtown to the spacious properties in the bucolic countryside. If you're in the market, you'll find immaculate properties and residential areas appreciated for their local schools and family-friendly setting.


The Ebb and Flow of the Market

Like many Californian cities, Morgan Hill's real estate market has seen its share of growth and change. With its close proximity to Silicon Valley, the city has experienced steady demand among professionals seeking a quieter, suburban lifestyle. The market trends point to sustainable growth, making it an attractive area for investment and long-term residency.

There were 28 ADUs that received building permits in Morgan Hill in 2018 and 2019. All of those were intended to be made available to renter. There were about 45,952 people living in Morgan Hill. Average income is about $139,849 while average property value is at $909,192.



Morgan Hill is a city of hidden gems waiting to be discovered. From its rich historical tapestry to its dynamic community and natural splendors, this vibrant town offers a lifestyle that is both serene and stimulating. Whether you're enjoying a glass of local wine on a sunny patio, trekking through the hills, or participating in a festive event, Morgan Hill encapsulates the best of what Central California has to offer. Take the time to explore this quintessential American town, and you just might find your heart – and your home – in the hills of Morgan Hill.

Consult with Us.

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Reach us out by submitting the form below.

Service Areas

  • ADU Palo Alto

  • ADU San Jose

  • ADU Santa Clara

  • ADU Saratoga

  • ADU Sunnyvale

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