Sherman Oaks has quietly become one of the best neighborhoods in Los Angeles to build an ADU.
With its larger residential lots, detached garages, and strong rental demand, many Sherman Oaks properties are uniquely positioned for backyard homes, garage conversions, and multi-generational living. In fact, a lot of the older ranch-style homes throughout the area were built with layouts that make adding an ADU much easier than in denser parts of Los Angeles.
Regardless of what you plan to use your unit for, building an ADU in Sherman Oaks can be a strong long-term investment.
But while California’s ADU laws have made the process easier than it used to be, there are still important local regulations, permit requirements, and property considerations you’ll need to understand before getting started.
But, we’re breaking down everything you need to know before embarking on your ADU journey.
At Maxable, we help homeowners throughout Sherman Oaks connect with experienced local ADU designers, architects, and general contractors who understand Los Angeles regulations and the realities of building in the area.
If you want to find out what’s possible on your property, you can schedule a free ADU Planning Call with the Maxable team.
How Much Does It Cost to Build an ADU in Sherman Oaks?
The cost to build an ADU in Sherman Oaks starts at about $120,000, but costs can vary significantly depending on the type of ADU, the condition of the property, and the level of finishes you choose.
In general, Sherman Oaks tends to be on the higher end of the Los Angeles ADU market because homeowners often invest in upgraded materials, larger units, and more custom designs.
Here’s a general starting point for common ADU types in Sherman Oaks:
- Garage conversion ADUs: starting around $120,000
- Detached ADUs: starting around $160,000
- Above-garage ADUs: starting around $250,000
Garage conversions are typically the most affordable option because they reuse an existing structure, foundation, and many of the utility connections already on the property.
On the other end of the spectrum, above garage ADUs are typically the priciest since the existing garage will need to be either torn down and rebuilt, or structurally reinforced to support the second story.

Example of an Above Garage ADU
The Biggest Pricing Variable
The biggest factor in your ADU cost is usually not the square footage itself.
It’s the complexity of the project.
A simple garage conversion with minimal structural changes can be dramatically less expensive than a highly customized detached ADU with difficult site conditions.
That’s why the best way to understand pricing is to evaluate your specific property and goals upfront.
If you want help understanding what your ADU might realistically cost in Sherman Oaks, Maxable can connect you with local designers and contractors to help you explore your options.
Sherman Oaks ADU Regulations and Permit Requirements
Sherman Oaks follows the broader City of Los Angeles ADU regulations, which are based on California state ADU laws. While the rules have become much more ADU-friendly in recent years, there are still important development standards homeowners should understand before starting a project.
Maximum ADU Size in Sherman Oaks
In most cases, Los Angeles allows:
- Up to 850 sq. ft. for a one-bedroom ADU
- Up to 1,000 sq. ft. for a two-bedroom ADU
California law also allows homeowners to build at least an 800 sq. ft. ADU regardless of floor-area ratio and several other regulations that would normally prevent it.
Garage conversions and ADUs built within existing space may qualify for additional flexibility.
Setback Requirements
For detached ADUs in Sherman Oaks:
- Side setbacks are typically 4 feet
- Rear setbacks are typically 4 feet
Front setback requirements depend on the existing property conditions and local zoning rules.
If you are converting an existing permitted structure, like a detached garage, you can often keep the existing footprint without needing to meet new setback requirements.

Height Limits
Detached ADUs in Los Angeles are generally allowed up to:
- 16 feet tall by-right
However, some projects may qualify for heights of up to 25 ft depending on:
- Lot conditions
- Transit proximity
- Multifamily properties
- Roof type and design
Above-garage ADUs and two-story ADUs typically require more detailed planning and review.
Parking Requirements
In many Sherman Oaks ADU projects, additional parking is not required.
This is especially true for:
- Garage conversion ADUs
- Properties near transit
- Projects within existing structures
Even if you convert your garage into an ADU, the city often cannot require you to replace those parking spaces.
How to Build an ADU in Sherman Oaks

Building an ADU in Sherman Oaks involves much more than simply adding a small structure to your property. Because the unit will be intended for long-term living, the process requires careful planning from the beginning.
The good news is that Sherman Oaks is one of the best neighborhoods in Los Angeles for ADUs thanks to its larger lots, detached garages, and older home layouts that are often very ADU-friendly.
Here’s what the process typically looks like.
Step 1: Evaluate Your Property
The first step is determining what type of ADU your property can support.
The best properties will have:
- A deep empty backyard or an existing structure (if doing a garage conversion)
- A flat lot (no sloping)
- Easy access to the backyard either through an alley or a side walkway
Garage conversions are particularly common because many homes in Sherman Oaks already have detached rear garages that can be repurposed into living space.
But, don’t sweat if your property doesn’t have all of these. ADU construction has come a long way over the last several years, and experienced designers and contractors can often find creative solutions for properties with tighter layouts, slopes, or limited access.
Step 2: Design the ADU and Create Your Plans

Once you’ve done a review of your property, the next step is working with an ADU designer or architect to bring the project to life.
This stage is much more than simply drawing a floor plan.
A good ADU designer will work with you to understand your goals for the project, whether that’s maximizing rental income, creating space for family, improving privacy, or building a high-end backyard home that complements the existing property.
From there, they’ll recommend the best approach for your lot, budget, and long-term goals while helping shape the overall layout, size, and design of the ADU.
Once the design direction is finalized, the designer or architect will draft a complete set of ADU construction plans for city approval.
These are detailed multi-page documents that include everything needed for permitting and construction, including:
- Floor plans and elevations
- Structural drawings
- Utility and site plans
- Energy compliance documents like Title 24
- Construction details required by the City of Los Angeles
These plans are what the city reviews during plan check to determine whether your ADU complies with local zoning and California building code requirements.
Step 3: Submit Your Plans for Permits
Before construction can begin, your ADU plans must go through a process called plan check with the City of Los Angeles.
During plan check, the city reviews your entire project to make sure it complies with local zoning regulations and California building codes. This includes things like the size and placement of the ADU, structural safety, utility connections, and energy compliance requirements.
In many cases, the city will request revisions or clarifications before approving the project. This back-and-forth is a normal part of the permitting process and is one of the main reasons why having detailed, well-prepared plans matters so much.
Once the plans are approved and any required corrections are completed, the city issues your building permit and construction can officially begin.
Step 4: Build the ADU

Once permits are approved, construction can begin!
The length of the construction phase will vary depending on the type of ADU you’re building, but in general, the process can take anywhere from 3 months to a full year.
Garage conversions in Sherman Oaks often move faster because the main structure already exists. Detached ADUs typically take longer since they require full ground-up construction, including a new foundation, framing, and roofing.
Throughout construction, the project will also go through multiple city inspections to ensure everything is being built safely and up to code.
The best ADU contractors will manage the day-to-day coordination of the project, including scheduling subcontractors, ordering materials, coordinating inspections, and keeping construction moving forward as efficiently as possible.
Step 6: Final Inspections and Occupancy
Before your ADU can legally be occupied, the City of Los Angeles will perform final inspections to confirm the project was built according to approved plans and building code requirements.
Once the project passes final inspection, the ADU is officially complete and ready to be used as a rental unit, guest house, family living space, home office, or whatever purpose you originally designed it for.
Ready to Build an ADU in Sherman Oaks?
Building an ADU in Sherman Oaks can be an incredible opportunity.
But every property is different. Lot layout, existing structures, utility access, zoning, and your overall goals all play a major role in determining the best path forward.
That’s where Maxable comes in.
We help homeowners throughout Sherman Oaks and the greater Los Angeles area connect with experienced local ADU designers, architects, and general contractors who understand the realities of building in Los Angeles.
Schedule a free ADU Planning Call with Maxable and get matched with local professionals who can help bring your project to life.
