Real construction costs for backyard casitas across the Southwest - and what they rent for.
A new detached casita typically costs $110,000–$280,000 to build in the Southwest (2026) — roughly $135–$400 per square foot depending on your city, the size, and finish level. Garage conversions come in well under that; high-end markets like Scottsdale run above it. A 2-bedroom casita rents for $1,400–$2,600/mo in the cities below.
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| City | Typical build cost | Cost per sq ft | 2-BR rental income |
|---|---|---|---|
| Albuquerque, NM | $120,000-$240,000 | $160-$320 | $1,300-$1,700/mo |
| Chandler, AZ | $125,000-$250,000 | $140-$280 | $1,600-$2,000/mo |
| Gilbert, AZ | $130,000-$260,000 | $150-$280 | $1,850-$2,300/mo |
| Henderson, NEV | $130,000-$250,000 | $140-$280 | $1,550-$1,900/mo |
| Las Vegas, NEV | $130,000-$250,000 | $140-$280 | $1,400-$1,750/mo |
| Mesa, AZ | $120,000-$240,000 | $135-$270 | $1,400-$1,800/mo |
| Phoenix, AZ | $120,000-$240,000 | $135-$270 | $1,600-$2,200/mo |
| Scottsdale, AZ | $140,000-$280,000 | $200-$400 | $1,900-$2,600/mo |
| Tempe, AZ | $120,000-$250,000 | $140-$280 | $1,600-$2,100/mo |
| Tucson, AZ | $110,000-$220,000 | $145-$290 | $1,400-$1,900/mo |
Costs reflect a new detached casita, all-in (design, permits, construction, utility connections). Click a city for the full cost breakdown.
"Casita" is the Southwest's word for what your city's zoning code calls an accessory dwelling unit (ADU) — so the rules that govern your casita are the ADU rules. Arizona's HB 2720 "casita law" now requires larger AZ cities to allow one on most single-family lots. Check your city's exact size caps, setbacks, and permit steps: Phoenix, Tucson, Mesa, Chandler, Gilbert, Scottsdale, Tempe, Las Vegas, Henderson.
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