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  • Writer's pictureJoseph Malka

Building a Coach House: Are Coach Houses a Good Investment?


Building a Coach House - Build a Home

A coach house, also known as a carriage house, secondary suite, or granny flat, is a small dwelling located on the same property as a larger house, typically found in the backyard. They have a rich history dating back to 18th-century England. Over the years, their purpose has evolved, and today, they serve various functions, from providing rental income to acting as home offices. In this comprehensive guide, we'll explore the typical features, modern uses, costs, and the value a coach house can add to your property. Hence, we try to assess “are coach houses a good investment” and whether you should consider building a coach house.


What Is a Coach House?

A coach house is a two-story outbuilding originally designed to store horse-drawn carriages. With a tall doorway facilitating easy maneuvering of the coach, some even included stables and living spaces for the coachman. In the 1900s, as automobiles replaced horses, these structures transformed into garages with upstairs living spaces. Today, they are repurposed as accessory dwelling units (ADUs), featuring modern amenities and unique architectural details.


The Best of Both Worlds

Coach houses are often perceived as a hybrid between a flat and a detached home. The property owner, usually the freeholder, resides within the building and utilizes one of the garages, while the remaining spaces are leased on long-term arrangements. Despite their affordability compared to detached houses, coach houses offer the advantages of a detached property, such as minimal neighbors and, in some cases, exclusive access to outdoor space.


Attached Coach House - Build a Home

Typical Features of a Coach House

  1. Enclosed Garages with Ample Space

  2. Fully Functioning Living Spaces

  3. High Ceilings

  4. Charming Architectural Details

  5. Open-Concept Design


Renovating an old coach house - Build a Home

Modern Uses of Coach Houses

Beyond serving as primary residences, coach houses have diverse applications in today's world. Whether considering building a new structure or renovating an existing garage, the possibilities are vast. From guest accommodations to home offices, the versatility of coach houses is becoming increasingly attractive to homeowners.


Today, these structures serve various purposes, including:

  • Short-term or long-term rental income.

  • Home office or studio space.

  • In-law suites for aging family members.

  • Guest houses for holiday visitors.

  • Apartments for older kids in college.


Can I Build One on My Property?

The ability to build a coach house depends on several factors, primarily determined by local municipality regulations, zoning, and planning requirements. In California, recent legislation encourages the construction of coach houses, emphasizing property affordability and multi-generational living. This opens up opportunities for homeowners to provide comfortable and independent living spaces for elderly family members or adult children.



Your Steps to Building A Coach House

If you're considering building a coach house, start by consulting with your local municipality at Santa Clara City Hall to understand any by-laws that may affect your plans. If there are no prohibitive by-laws, engage a contractor to draw up plans, submit them to the city for approval, and patiently await their response. The process may result in a direct approval, denial, or a list of amendments required for acceptance.


Tips for Success:


Detached Coach House - Build a Home

How Much Does a Coach House Cost?

The cost of a coach house averages $216,400, ranging from $20,000 to $800,000 for a fully custom home. Factors influencing cost include location, home size, customization, material and labor costs, permit fees, and site preparation.


How Much Value Can a Coach House Add to Your Home?

Building a coach house can increase your property's appraisal value by 25% to 34%, according to a study in Portland, OR. This investment may pay off when selling, especially if located in a college town or tourist destination.


Is a Coach House Right for You?

Building a coach house offers exciting possibilities for homeowners seeking additional living space or versatile structures on their property. By navigating local regulations and following the proper steps, homeowners can unlock the potential of coach houses for various purposes.


Before considering building a coach house, it's crucial to evaluate if this housing option aligns with your preferences and lifestyle. The competitive pricing and unique features may appeal to many, but understanding potential downsides is equally essential. With the right considerations and preparations, a coach house could provide the ideal blend of affordability and desirable living features.

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