Should You Build an ADU in Mesa, Arizona? | Arizona Daily

Arizona Daily Update: Modular Homes, Festivals, Matcha Cafés, and ADU Opportunities

Welcome back to the Arizona Daily Update, where we cover real estate insights, community news, and market updates that matter to anyone living, investing, or planning to move to Arizona. Today’s update takes us through proof of experience in the real estate field, innovative housing solutions, fun local events, and a deeper look at accessory dwelling units (ADUs) under the newly passed HB2720.

Let’s dive in.

Proof That We Do the Work

Before jumping into the news, it’s important to establish credibility. Between myself and my partner Templeton, we’ve sold roughly 600 homes in the past five years. Zillow only tracks part of this data and doesn’t account for our off-market deals and fix-and-flips, but even the visible number, 565 transaction is substantial compared to the average Arizona agent who may sell one or two homes per year.

Beyond traditional listings, we’ve managed luxury rentals, represented multiple buyers, and closed high-value flips. For example, one North Scottsdale project near the Waste Management Open was purchased for $1.31 million and sold for $2.65 million, proving our experience in both the retail and investment spaces. This background isn’t just for bragging rights, it matters because when we talk about the market, development opportunities, or housing affordability, it comes from years of hands-on work.

Modular Homes Coming to Phoenix: Affordable Housing or Hidden Costs?

One of the most talked-about stories right now is the arrival of HomeAccess America, a modular housing venture aiming to disrupt the housing market with fast build, durable homes. These homes aren’t tiny houses, they’re modular builds made from concrete and steel beams, promising resistance against earthquakes, floods, and fires.

Key highlights:

• Build time: As little as 2 months for a 2,000 sq. ft. home.

• Price range: $120,000–$240,000, with starter homes as low as $79,000.

• Durability: Advertised as disaster-resistant.

• Adoption: Already sold over 1,000 units globally.

While promising, there are real world considerations for Arizona:

• Concrete and steel can trap heat, and in 110° Phoenix summers, insulation and cooling systems must be top-notch.

• Costs don’t stop at the sticker price, land preparation, utility hookups, and permits can add $20,000–$35,000 to the final bill.

• Land inside Maricopa County remains expensive, with many lots priced at $100K–$300K before construction even begins.

Bottom line: While modular homes may help with housing affordability, the total cost after land and utilities may still price out lower-income buyers. Still, it’s an innovation worth watching as Arizona’s population continues to grow.

A Matcha Lover’s Paradise in Chandler

Matcha has exploded in popularity thanks to TikTok, and now Chandler, AZ, is home to Gozen Kamicha, a specialty café originally from Taiwan and China.

This spot isn’t your average coffee shop, it’s a matcha wonderland. The menu includes:

• Matcha soft serve ice cream

• Warabi mochi sundaes

• Matcha roll cakes and waffles

• Creamy tofu pudding with matcha toppings

• Bags of high quality green tea powder to take home

With customizable toppings like red beans, roasted sesame, and strawberry puree, it’s safe to say Chandler now has one of the most unique matcha cafés outside of Asia.

The ADU Question: Is HB2720 Really Making a Difference?

On January 1st, Arizona implemented HB2720, requiring cities with over 75,000 residents to allow Accessory Dwelling Units (ADUs) commonly called casitas or granny flats on single-family lots. Mesa, the third largest city in the state, has since seen 29 ADU permits issued in 2025, nearly matching the total from 2024.

But here’s the catch: despite the law, ADUs remain challenging in practice.

Why?

• Lot sizes: Many standard Mesa lots are too small to accommodate both the primary home and an ADU while meeting setback requirements.

• Pools and landscaping: Existing features often make it physically impossible to add another structure.

• HOA restrictions: Even if the city allows it, HOAs can (and often do) prohibit ADUs.

• Costs: An 800 sq. ft. ADU averages $275 per sq. ft. to build, plus $30,000 for site prep/utilities, totaling about $250,000. With financing, this equates to a ~$1,700/month payment, higher than the average ADU rental income ($1,200–$1,500/month).

In short, while ADUs theoretically provide more housing options, the financial and logistical hurdles mean they’re not yet the affordability solution many hoped for. Investors especially need to run the numbers carefully before moving forward.

Market Insight: The Bigger Picture

Arizona’s housing market continues to evolve. Population growth, migration from higher-cost states, and ongoing demand mean that creative solutions whether modular housing or ADUs are essential. But each comes with trade-offs.

For buyers and investors, the key is knowing what actually works in practice:

• Modular homes may reduce build time, but land and utilities remain costly.

• ADUs offer long term potential but may struggle to cash flow in today’s market.

• Traditional real estate, despite slower conditions in some segments, remains strong in luxury and investment spaces, as proven by consistent sales and flips across Phoenix and Scottsdale.

Final Thoughts

Arizona’s housing conversation is about more than just home prices, it’s about innovation, practicality, and community. Whether you’re interested in exploring a modular home, planning a festival weekend, trying a new matcha café, or evaluating an ADU investment, staying informed is the best way to make confident decisions.

The bottom line: Arizona continues to grow, and opportunities are everywhere but only if you know where to look.

For a full video guide, make sure to check out my YouTube Video Here

And if you are looking to buy or sell in Arizona, we would love to earn your business! 

Cole@whitelabelaz.com or text us directly at 602-350-5624

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