New York City is restrictive on ADUs, but recent zoning reforms have opened limited opportunities for accessory apartment conversions and basement ADUs in certain boroughs. Complex regulations require careful site analysis and expert guidance.
Zoning & Size Requirements
| Allowed Zones | Limited to certain neighborhoods |
| Max Size (Detached) | Not allowed (dense urban) |
| Max Size (Attached) | 500 sq ft (conversions only) |
| Max Size (JADU) | Not allowed |
| Max Height | N/A (conversion-based) |
| Max Units | 1 accessory apartment per lot |
Setback Requirements
| Rear Setback | N/A |
| Side Setback | N/A |
| Front Setback | N/A |
| Parking Required | Not required |
| Owner Occupancy | Owner must occupy primary unit |
| Min Lot Size | N/A |
Permit Process & Fees
| Approval Process | Alter-1 permit (interior renovation) |
| Review Timeline | 120-180 days |
| Permit Fees | $5,000-$10,000 |
| Impact Fees | Varies by borough |
| Plan Check | 6-8 weeks |
| Pre-Approved Plans | Not available |
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Construction Costs
| Average Build Cost | $150,000-$300,000 |
| Cost per Sq Ft | $300-$600 |
| Garage Conversion | $120,000-$260,000 |
| Prefab ADU (Installed) | Not applicable in NYC |
Finance Your ADU Project
Most ADU projects are funded through HELOCs, construction loans, or cash-out refinancing. Compare rates from top lenders in minutes.
Compare ADU Financing Options →Rental Income Potential
| Avg Rent (1 Bedroom) | $2,200-$3,200/mo |
| Avg Rent (2 Bedroom) | $2,800-$4,200/mo |
| Short-Term Rental | Heavily restricted (primary unit rule) |
| Est. Annual ROI | 4-6% annual return |
Explore Prefab ADU Options
Prefab ADUs can save 20-40% vs. traditional construction and cut build time in half. Compare top prefab manufacturers.
Compare Prefab ADUs →Recent Law Changes
What's Changed Recently
- 2023: Updated ADU policy for ground-floor apartments
- 2024: Expanded accessory apartment allowance in outer boroughs
- 2023: Streamlined permit process for basement conversions
- 2024: Added provisions for junior ADUs in multi-family buildings
Tips for Building an ADU in New York City
- NYC ADU opportunities are limited to conversions, not new construction
- Owner-occupancy requirement restricts pure investment strategies
- Extremely high costs mean lower ROI despite premium rents
- Legality and registration are critical; consult NYC-based experts
Frequently Asked Questions
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