Newcastle Homes RENOVATIONS


Accessory dwelling unit

Build your ADU with Newcastle Homes


What is an ADU?

An Accessory Dwelling Unit, or ADU, also known as an alley flat, granny flat or casita, is a secondary housing unit located on the same property as a primary residence. ADUs can serve a range of purposes from providing living quarters for family members to generating rental income. Building an ADU is a way to add additional space and flexibility to your property without having to move or renovate your existing home. If you’re considering adding an ADU to your property, there are several reasons why it may be a good investment.

Why build an ADU?

Additional Income

You can get a lot of value from a separate structure as a short-term rental. Services like AirBnB, VRBO and others have streamlined the process of offering a short-term rentals and these services have become ubiquitous among travelers. After up-front costs, a rental ADU can pay for itself in a matter of years and continue to create income for decades. 

Aging in place

As relatives age, they need more assistance and less property to look after. An accessory home is a great way to provide elderly family with the support they need while still giving them independence and privacy. We are experienced with designing flexible spaces that facilitate aging in place.

Starter home

Many emerging adults struggle to find an affordable home and save for a down payment for their own home. If you have adult children starting out in life, an ADU might be a terrific alternative for them. They will have their own space and privacy while living in a cost-effective home while saving for their first home. 


Increase Market Value

The cost of building an ADU is modest in terms of the value added to your property. It’s no secret that housing values are high in Austin. Adding additional square feet is a great way to increase the value of your property. If you are thinking of selling your home soon, an ADU will attract additional buyers both with need of an ADU themselves and by getting your property in their search for that higher square footage.

Privacy for Work Space

If you’re working from home, an office is vital, both for your work and for your home. Keeping these spheres separate helps maintain a healthy work-life balance and helps you focus. An ADU provides a separate space for meetings and can also serve as a studio or workshop. With options for bathrooms, kitchenettes, wet and dry bars, you don’t need to return to the main house for essentials.

Accommodations for Relatives

A separate space provides privacy for you and your relatives/friends when hosting guests. You can maintain your daily routine while still entertaining guests. Separate facilities allow guests to live as normal, with all the essentials, but proximity to your main home allows them to join you when you’re ready.

Why build with us?

We have what it takes

You need an experienced, committed team that can guide your project from design, through permitting and construction, to completion.

In our more than 22 years of construction in Austin, we’ve seen just about everything. NH2 is part of the Newcastle Homes family and can draw on the vast experience of an established Austin homebuilder.

NH2 is the renovations and additions division of Newcastle Homes. Your project will have a dedicated superintendent and designer. You can count on NH2 as part of the Newcastle Homes family that has built over 200 homes in Austin. 

We have worked with several of our key trades for more than a decade. We know and vouch for their work and can leverage our relationships to get superior pricing and service.

Peace of mind

All NH2 projects are covered by an extensive warranty. We take pride in our warranty work, frequently going above and beyond what is required. If we did it wrong, we will make it right. We are a local homebuilder, we’ve been around for more than 20 years and we aren’t going anywhere. 

Potential floor plans

We've teamed up with Studio Momentum, an architecture firm with extensive experience designing ADU's in Austin, to provide some plans that could be a starting point for your project.

You don't have to do this alone.

In a building environment as complicated as Austin, you need an experienced general contractor to shepherd your project from start to finish. As a spec and custom homebuilder, we are uniquely adept at designing and building ADU’s. We have decades of experience building homes from the ground up. We know what works. We know what sells.

Let's get started!

We're ready if you are

We have bandwidth for new projects right now, but slots fill up fast.

Contact us today to explore your options.

An Established Reputation

We have been building in Austin’s urban core for more than 20 years. We have over 200 unique local projects and scores of client and professional references you can trust.

Financing Options

Unique in-house programs and special relationships with preferred lenders who specialize in 203k rehab loans and other financial tools to get your project done while maximizing your investment.

Comprehensive, Collaborative Approach

Our approach involves the complete team from day one. A comprehensive, collaborative approach means better communication, more value, superior efficiency, and better results. 

Service Area

We've done work across the Austin metro and beyond.
We'll consider a project anywhere.

  • Allandale
  • Zilker
  • Brentwood
  • Crestview
  • North Loop
  • North Shoal Creek
  • Hyde Park
  • NW Hills
  • Tarrytown
  • Downtown
  • The Domain
  • Gateway
  • Great Hills
  • Rainey
  • Holly
  • Oak Hill
  • Old East Austin
  • Old West Austin
  • Pemberton
  • Chestnut
  • Cherrywood
  • University Hills
  • Georgian Acres
  • Westover Hills
  • Cat Mountain
  • Spyglass
  • McKinney
  • Franklin Park
  • Mueller
  • Rosewood
  • Rosedale
  • French Place
  • Westgate
  • Wells Branch
  • Windsor Park
  • Wooten
  • Dove Springs
  • Govalle
  • Shady Hollow
  • Onion Creek
  • Riverside
  • Montopolis
  • Pleasant Valley
  • Bouldin
  • Travis Heights
  • Galindo
  • Dawson
  • St. Edwards
  • Parker Lane
  • Oltorf
  • Coronado Hills
  • St. John’s
  • Highland
  • Highland Park
  • Hancock
  • Balcones Woods
  • Sunset Valley
  • Barton Creek
  • Bee Cave
  • Lakeway
  • West Lake Hills
  • Rollingwood
  • Lost Creek
  • Steiner Ranch
  • Lago Vista
  • Spicewood
  • Dripping Springs
  • San Leanna
  • Manchaca
  • Buda
  • Kyle
  • San Marcos
  • Lockhart
  • Wimberley
  • Woodcreek
  • Georgetown
  • Round Rock
  • Hutto
  • Marble Falls
  • Johnson City
  • Blanco
  • Driftwood
  • Taylor
  • Bastrop


Stunning architecture, designer interiors


Exactly what you want, nothing you don't


Don't settle, you need a design-build team

Have a land survey or plans?