​​At NEO Builders and Design, we don’t just build fast—we build smart. Homeowners shouldn’t have to choose between speed and quality—that’s why we deliver both, every step of the way. Our experienced team streamlines the process from the first consultation to final inspections, ensuring your ADU or home addition stays on schedule and within budget.a
Building Secondary Units That Generate Generational Rental Income For Homeowners
Building a custom ADU in Pasadena is one of the smartest ways to generate long-term wealth through passive income. Whether you rent to professionals working near Caltech or offer housing to extended family, your ADU becomes a valuable asset that enhances your property's value and functionality. While Pasadena does not allow short-term rentals (under 30 days) for ADUs, long-term leases provide reliable, consistent income. At NEO Builders and Design, we create modern, beautifully designed secondary units that help homeowners make the most of their property.
Luxury ADUs That Set Us Apart
As a leading ADU builder in Pasadena, NEO Builders crafts energy-efficient, high-end ADUs designed to complement your main home’s architecture. We offer:
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Smart home integrations
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Solar panel installation
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Custom cabinetry
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Designer lighting and fixtures
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Sleek, modern layouts
Every element of your unit is elevated—from flooring to finish.
Luxury ADUs That Set Us Apart
Navigating city requirements is one of the trickiest parts of building an ADU in Pasadena—but that’s where NEO Builders excels. We guide you through every step, from permitting to compliance, so your project moves forward without delays. Our team stays up to date on Pasadena’s local zoning laws and ensures your ADU meets all California building codes, including Title 24 energy standards.
We’ll walk you through:
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Pasadena-specific ADU permit requirements
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Local setbacks and zoning rules
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Parking exemptions (especially near public transit)
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Opportunities for JADUs and garage conversions
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Title 24 compliance and energy-efficient design options
 Rent Your ADUNEO Builders is the best contractor for your job. Contact us today! |  Garage ConversionsNEO Builders is the best contractor for your job. Contact us today! |  ADU BuildersNEO Builders is the best contractor for your job. Contact us today! |  Designing ADUsNEO Builders is the best contractor for your job. Contact us today! |
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Home Addition Services We Offer in Pasadena
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NEO Builders doesn’t just specialize in ADUs and garage conversions—we also help homeowners expand their homes through elegant and functional additions. Our home addition services in Pasadena include:
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Detached ADUs
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Garage conversions
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Junior ADUs (JADUs)
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Backyard cottages
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Guest suites
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In-law units
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Home offices
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Creative studios
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Whatever you have in mind, we're here to help. Contact us for a free ADU consultation, and let’s bring your ideas to life with a custom solution that fits your property and lifestyle.
NEO Builders is the best ADU contractor for your job. Contact us today!
Benefits of Building an ADU in Pasadena
Since January 2020 it has become much simpler to get plans approved by the city of Pasadena.
Building an ADU in Pasadena offers more than just strong financial returns—it’s also a practical way to support how you live, work, and plan for the future.
Pasadena is home to leading institutions like the California Institute of Technology (Caltech) and the Jet Propulsion Laboratory (JPL), which attract professionals and researchers from around the world. ADUs are a great option for providing comfortable, private housing to those working short- or mid-term assignments in the area.
The city is also surrounded by colleges and universities, making ADUs a popular choice for students, visiting professors, and academic staff who need flexible housing options. Many homeowners take advantage of mid-term leases—typically three months or longer—which provide more stability than short-term rentals while keeping their property available for future needs.
And the benefits don’t stop there—here are even more reasons Pasadena homeowners are turning to ADUs:
Return on Investment
With high rental demand and strong property values in Pasadena, building an ADU is a smart long-term investment. A custom ADU in Pasadena typically starts at around $150,000, and a one-bedroom unit can rent for approximately $2,400 per month.
Even after accounting for basic operating expenses (like maintenance, utilities, and property management), homeowners can expect to net over $20,000 in rental income per year. That translates to a rough ROI of 13–15% annually—before factoring in property appreciation and tax benefits.
Homes with ADUs also tend to sell faster and at higher prices, making an ADU a valuable asset whether you plan to rent it or eventually sell your home.
Completely Customizable
Your ADU can be anything you need it to be—today and in the future. Whether you start with a yoga studio, creative office, guest house, or multigenerational suite, the space can easily adapt as your needs change.
What starts as a home office or short-term guest space today could become housing for aging parents in 5 years—or a private rental unit 20 years down the line. As experienced ADU contractors in Pasadena, we design each unit with long-term flexibility and functionality in mind.
Appeal to Future Buyers
Homes with ADUs don’t just offer added flexibility—they significantly boost resale value. According to the Federal Housing Finance Agency (FHFA), homes in California with an ADU have a median appraised value of $1,064,000, compared to $715,000 for those without—a 49% increase in value.
This makes building an ADU in Pasadena a smart long-term investment, especially in a competitive real estate market where buyers actively seek income-generating or multi-use living spaces.
Rental Income Potential
While Pasadena does not allow ADUs to be rented for fewer than 31 days, long-term rentals still offer excellent income potential. A well-designed one-bedroom ADU in Pasadena can earn around $2,400 per month in rental income.
Whether you lease to professionals, students, or small families, an ADU provides stable, passive income while boosting your property’s overall value.
Prime Location
Pasadena stands out not just for its scenic streets and proximity to Los Angeles, but for its strong ties to innovation and education. The city is home to cutting-edge institutions like Caltech and JPL, attracting professionals in science, tech, and research from around the world.
Its central location, access to transit, and thriving academic community make Pasadena especially appealing for long-term renters and homeowners looking to invest in a connected, future-focused city.
More Affordable Than Relocating
Buying a larger home in Pasadena can cost upwards of $1.2 million, while building a custom ADU starts at around $150,000—a fraction of the price. Instead of moving, you can invest in your existing property, gain extra space, and increase your home’s value all at once.
Perfect for Multigenerational Living
Multigenerational living is becoming increasingly common as housing costs rise and families look for smarter ways to share resources. In fact, more than 66 million U.S. adults live in multigenerational households, a number that continues to grow across California.
Building an ADU in Pasadena makes it easy to create a private, comfortable space for aging parents, returning college students, or live-in caregivers—without sacrificing anyone’s independence or privacy.
Popular Room Additions in Pasadena
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Primary Suite Additions
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Second-Story Expansions
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Kitchen Extensions
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Home Offices
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Family Rooms
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Sunrooms
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In-Law Suites
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Garage Conversions
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Mudrooms
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Media Rooms
About Pasadena, California
Pasadena offers a unique blend of small-town charm, cultural sophistication, and city-side convenience. Just northeast of Los Angeles, it’s celebrated for its historic architecture, tree-lined neighborhoods, and lively community events. With strong rental demand and a desirable location, Pasadena is also a prime market for ADU investments.
Attractions & Activities
Norton Simon Museum
A world-class art collection housed in an architectural gem—perfect for visitors and residents alike.
Old Pasadena
Walkable streets filled with cafes, boutiques, and historic charm, ideal for short-term rental appeal.
The Rose Bowl
Home of major concerts, college football, and the world-famous Rose Parade.
Eaton Canyon
A stunning nature preserve with hiking trails, waterfalls, and sweeping views of the San Gabriel Mountains.
How Much You Can Make Renting Your ADU in Pasadena
Rental rates in Pasadena remain strong, offering excellent income potential for ADU owners:
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Studio ADU: Typically rents between $1,900 and $2,300 per month.
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1-Bedroom ADU: Generally commands $2,500 to $3,200 per month. ​
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2-Bedroom ADU: Often rents for $3,400 to $4,000+ per month. ​
Pasadena's appeal is bolstered by its proximity to Los Angeles, vibrant cultural scene, and institutions like Caltech, contributing to a steady demand for rentals.
What Should You Keep in Mind in the Planning Stage of Your ADU?
Since January 2020, building an ADU in Pasadena has become more accessible thanks to California’s updated housing laws. However, the permit and planning stage remains the most detailed and time-consuming part of the process.
This phase begins with securing the necessary approvals from the City of Pasadena, including architectural reviews and permit applications. One of the most important steps is working with your ADU designer or architect—like the in-house team at NEO Builders—to create a detailed site plan. This plan must outline:
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The proposed location and square footage of your ADU
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Parking layout and required setbacks
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Existing structures on the property
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Floor plans, elevations, and utility connections
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Any additional JADUs you plan to build
Depending on your zoning, you may be eligible to build multiple ADUs or JADUs on the same property. Once your architect finalizes the plans and you’ve signed off, they’re submitted to the City of Pasadena Building and Safety Division for review. This process typically takes 30 to 120 days, but Pasadena’s timeline can vary. An expedited review is available for an additional cost.
Understanding Parking Requirements for Your Pasadena ADU
In most cases, ADUs in Pasadena require one additional parking space, covered or uncovered. However, California state law exempts certain ADUs from parking requirements. You may not need to provide parking if your ADU meets any of the following conditions:
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It’s located within a half mile walking distance of public transit
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It’s within a designated historic district
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It’s part of an existing or proposed primary residence or accessory structure
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On-street parking permits are required but not offered to ADU occupants
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There’s a car share vehicle within one block
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It’s being built at the same time as a new single-family or multifamily home
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NEO Builders can help determine if your project qualifies for one or more of these exemptions—and guide you through Pasadena’s local rules with ease.
Setback and Size Requirements for Pasadena ADUs
ADUs in Pasadena must comply with California’s state-mandated setbacks:
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4 feet from side and rear property lines
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6 feet of separation from the main residence (for detached units)
The allowed size for an ADU in Pasadena ranges from 150 to 1,200 square feet. Detached ADUs can be up to 1,200 sq. ft. Attached ADUs are limited to the lesser of 1,200 sq. ft. or 50 percent of the primary home's living area.
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If you're converting an existing garage or accessory structure, you may qualify for setback and design exemptions—making garage conversions one of the easiest and most cost-effective ways to add livable space.
Title 24 Compliance in California
Every custom ADU in Pasadena must meet Title 24, California’s building energy efficiency standard. These regulations are updated every three years to reduce unnecessary energy consumption and promote sustainability in new construction.
Title 24 compliance includes:
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High-efficiency water heaters
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Improved attic and wall insulation
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Energy-efficient windows and doors
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Optimized lighting and ventilation systems
Each project’s architectural plans must include a window schedule and energy report, both of which are reviewed during your consultation to ensure full compliance.
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JADU vs. ADU in Pasadena
Understanding the difference between Accessory Dwelling Units (ADUs) and Junior ADUs (JADUs) can help you decide which option is the best fit for your property and goals.
Junior Accessory Dwelling Unit (JADU):
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Must be created from an existing, legally permitted bedroom
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Maximum size: 500 sq. ft.
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Must include an efficiency kitchen
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Must be attached to the primary residence
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Accessory Dwelling Unit (ADU):
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Fully independent living space
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Can be detached, attached, or a garage conversion
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Must include a kitchen, bathroom, and separate entrance
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Can range from 150 to 1,200 sq. ft.
Thanks to recent housing policy changes, it’s easier than ever to build either an ADU or JADU in Pasadena. At NEO Builders, we handle the entire process—from architectural design to permitting to final construction—so you can focus on enjoying the results.
Steps to Building an ADU in Pasadena
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Free Phone or In-Person Consultation
We’ll assess your lot, zoning, and goals to determine what’s legally allowed and how to maximize your build. -
Meet with an Architect and Designer
Our team works with you to design a functional, beautiful ADU that aligns with both your vision and City of Pasadena code requirements. We make sure everything from layout to finishes fits your needs. -
Plan Submittal to the City
Once finalized, we submit the plans on your behalf. You cover the permit fees, and we begin preparing your property for construction. -
Building Your ADU
This is where NEO Builders shines. We manage everything from start to finish with quality craftsmanship, clear communication, and no surprises. -
Final Inspections
We coordinate with city inspectors and walk them through your property to ensure full compliance with all Pasadena regulations. -
Rent or Move Into Your New ADU
Whether you're renting it out or using it yourself, your new ADU is ready to start working for you—financially, functionally, or both.
FAQs About Home Addition & ADU Contractors in Pasadena
Do I need a permit to build an ADU in Pasadena?
Yes. Our team helps secure all necessary permits and approvals through Pasadena’s Building and Safety Division.
Can I build a JADU and ADU on the same property?
Yes, depending on your zoning and lot size. We'll evaluate your eligibility during the consultation.
Can I rent my ADU on Airbnb in Pasadena?
Not at this time. Pasadena does not allow ADUs to be rented for 30 days or less, which means short-term rentals on platforms like Airbnb are prohibited. However, you can lease your ADU for 31 days or more, which makes it ideal for mid-term rentals—like traveling professionals, visiting faculty, or tenants needing flexible, longer-term stays.
How long does it take to build an ADU in Pasadena?
From planning to final inspection, timelines range from 3–10 months depending on the project's scope and permitting process.
How much does it cost to build an ADU in Pasadena?
Costs vary depending on the size, type, and materials used, but most ADUs range between $150,000 and $350,000. We’ll provide a personalized estimate during your consultation.
Do you offer home additions in Pasadena, or just ADUs?
Yes, we specialize in both. From second-story additions to kitchen extensions and guest suites, we help homeowners increase space and value.
Do you offer garage conversions in Pasadena?
Absolutely. Garage conversions are one of the most cost-effective and streamlined ways to build an ADU, especially for smaller lots in Pasadena.
Is NEO Builders licensed and insured?
Yes. We are fully licensed, bonded, and insured general contractors in Los Angeles County.
NEO Builders and Design is the Best Pasadena ADU Contractor. Book a Free Consultation Today!
Ready to build your dream ADU or expand your home with a custom addition? NEO Builders and Design is your go-to team for home addition & ADU contractors in Pasadena.
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Book your free ADU consultation today and let’s bring your Pasadena property’s full potential to life.
