If you can’t afford to buy a bigger house, build an ADU and turn it into a new house._1

Serban and Laura Gudino-Penciu, who purchased a charming 900-square-foot bungalow in Eagle Rock, Los Angeles, in 2004, have faced the evolving challenges of raising a family in California’s booming housing market. Their home, built in 1924, was perfect for them initially, but as their two sons, now aged 12 and 15, grew up and Serban transitioned from a corporate job to freelancing, the family found themselves in need of more living and working space.

Laura, who works in pharmaceutical sales, explained, “As the kids got older, we wanted another bathroom and some common areas. We also needed space for them to be active without us constantly watching.” However, they didn’t want too much space that could distance them from their children.

As home prices skyrocketed, the couple contemplated converting their garage into an Accessory Dwelling Unit (ADU) in 2020. They were surprised when a contractor quoted over $150,000 for the project. Architect Alex Solbes, who specializes in ADUs, noted that many people believe they are low-cost solutions, but the reality is different. “Construction costs surged during the pandemic and have remained high. This is the new normal,” he said.

Initially, they considered selling their small home and buying a larger one nearby. However, they soon realized this would be challenging due to the drastic changes in the housing market. They had bought the two-bedroom home for $385,000 15 years earlier, but now the average home price in Los Angeles hovers around $973,000. Each time they made an offer, they were outbid by others willing to pay more.

Ultimately, they decided to expand their existing home and convert the garage into an ADU. They hired AOS Works, Architecture & Design, where Solbes recognized their desire for a brighter, more functional space for family living and work.

“Natural light is crucial for us,” Laura emphasized. “It’s one of the most important factors.” Solbes designed an expansion that added 740 square feet to the main house, which included a new master suite with an en-suite bathroom and walk-in closet, a laundry room, a family activity room, an office, and a powder room. The renovations nearly doubled the home’s footprint. They also upgraded the kitchen, living room, dining room, two bedrooms, and a bathroom to better accommodate their family of four.

Behind the main house, the garage was transformed into a 250-square-foot ADU, providing Serban with a dedicated workspace. The ADU features a kitchen equipped with essential appliances, a bathroom, and double doors opening to the pool area, creating a sense of spaciousness thanks to thoughtful design.

Although the garage was no longer available, Solbes designed a storage area adjacent to the ADU that can be accessed from the exterior. Serban admitted that losing the garage was a tough decision, despite the available driveway space for parking.

Once renovations were complete, the front of their home matched the classic look of other older bungalows in the neighborhood, while the back featured a modern design that realized the owners’ vision of ample light and open space.

“The additions allow for higher ceilings and fully open bi-folding doors, creating a greater connection between the family activity room and the outdoor space,” Solbes explained. This transformation introduced a new dynamic to the traditional bungalow facade.

The newly connected elements create a cohesive flow, with the high ceiling of the family activity room enhancing the connection to the yard and allowing natural light to pour in—an element that the original structure lacked. The master bedroom also opens onto a balcony, further strengthening the connection to the backyard.

As long-time residents of Eagle Rock, Serban and Laura believed it was essential to preserve the front of their home to blend in with the character of the neighborhood. “We didn’t want a McMansion; we just wanted more space that complemented the existing structure,” Laura stated.

The ADU, featuring polished concrete flooring, has also become a versatile space that can function as a pool house. Serban now runs his digital marketing firm and a real estate investment company from the ADU, which serves as his office.

“I’m always on calls, and sometimes my video conferences can get loud, so I move from the main house to the ADU to work,” he shared. “It’s an open space where we can hang out, but mostly, it’s my office. I can work at 1 AM without disturbing anyone.” Laura chuckled, “Sometimes I have to text him to say dinner’s ready.”

Despite facing challenges when installing new deck spaces and a fire pit on their standard-sized lot with the pool, the family is thrilled with the results of their thoughtful renovation. “We wanted a multifunctional backyard,” Laura mentioned when discussing their love for an indoor-outdoor lifestyle. “We enjoy the extra usable space. We spend a lot of time outdoors, and the ADU fits that need perfectly. Sometimes we watch games out here, or we light the fire pit. I recently hosted a book club on the patio, and everything is easily accessible from the main house.”

After 14 months of construction, Omega Contractors completed the project in 2022. The cost of the ADU, excluding appliances, fixtures, and the main house renovation, was approximately $175,000. When asked about the impact of the ADU on their family, Laura remarked, “It has changed our lifestyle.”

“The kids can invite friends over, and while we can hear what they’re up to, they also have the freedom to enjoy their space,” Serban said. “They can have fun without feeling like their parents are constantly watching them. That was hard to manage in the small house.” Laura added, “Now this is our forever home. We have everything we need.”