You’ve been entertaining your guests the wrong way.

Your dinner parties are to-die-for, and your hosting skills are immaculate, but you can take it up a notch with your guests’ accommodations.

Why not host friends, family, and all out-of-town visitors in the ultimate comfort and luxury with a guest house?

Your guests will feel more at home, and neither of you will have to alter any behaviors or sacrifice any routines.

Luxury guest home building might seem like a difficult process, but in reality, it’s not.

Before getting started with the process, here are the answers to the most commonly asked questions about building a guest home.

1. Where Can I Build a Guest House?

In general, you can build a guest house anywhere on your property.

For most homes, this means the backyard.

But if you have a lot of land, you’ll have more options for the exact location.

But before you draw up blueprints and break ground, you will need to check the local laws and ordinances where you live about having a guest house on your property.

You may need special permits to begin building and have certain codes you’ll need to follow for the guest home to be a legal structure.

2. How Much Does a Guest House Cost to Build?

The final cost of a guest house will vary from one dwelling to another, and there are a lot of variables that can determine what the final price will be.

Size is one of the first factors that can affect the cost.

Materials and labor costs will also affect the final price of the guest home.

Location will also play a role.

Building a home from the ground up has a median price between $45,000-$100,000+. However we have seen in increase in these numbers across the Phoenix valley, so be sure to discuss this topic with your General Contractor to ensure you’re clear about the necessary investment to achieve your guest home goals.

However, converting an existing structure like a garage will cost much less.

3. How Big Can the Guest House Be?

How large your guest house can be will depend mostly on the local building codes and the size of the lot.

Local codes may limit how large an accessory dwelling unit can be maximum.

But how much space you have available on your property will also play a role.

Small backyards may have to use vertical space and build up so as not to take up the entire backyard.

4. How Else Can I Use the Guest House?

It may be called a guest house, but that doesn’t mean it has to sit empty until your next visitor.

In the meantime, you can rent it out as a short-term rental to other travelers or even students.

You may also want to use the space to your advantage when no one is out there and have an office, kids’ playroom, or TV room in the guest house.

5. What Will a Guest House Look Like?

Your guest house can look like anything.

You can build it in any architectural style or color scheme that you fancy.

That being said, many homeowners choose to have their guest house and the main house look similar.

This creates a more cohesive design for the entire property.

But that doesn’t mean a guest house has to look like a mini version of the main house.

They can be similar, share architectural elements, or have coordinating color schemes.

6. What’s the Typical Budget for a Guest House?

Typically, homeowners spend about $55,000 for a 600-square foot guest house.

But totally custom homes can cost more, about $100 to $950 per square foot.

You’ll also need to factor in the cost of labor and materials, as well as systems like electricity and plumbing.

But with the right choices, you can also build a guest house for much less, even as little as $5,000.

It’s best to research guest houses in your area before setting a budget and shopping around for professionals that fit within your budget.

7. What’s the Level of Privacy?

Privacy depends heavily on who will be using the guest house.

But regardless of who will stay there, having some level of privacy is always welcome.

If you plan to only have it for friends or family, you might not want complete separation.

But if your plan includes renting out your guest house, then more privacy will be beneficial for both parties.

8. Can A Guest House Be Two Floors?

Absolutely, a luxurious home for guests can feature two floors. You will have to check local building codes as some units may have a maximum height.

But this maximum height often allows for a loft space at the minimum and even a full second floor.

9. What’s Included in a Guest House?

You get to control what rooms and features your guest house has.

A kitchen, bathroom, living space, and bedroom are always included.

But as the homeowner, you get to customize all the features to suit your wants and needs.

To make it a luxurious home, you may want to add to these features with a spa-like bathroom, a wine fridge in the kitchen, hardwood floors, and comfortable furniture.

It’s a good idea to browse guest home ideas for inspiration.

10. Is Building a Guest House Worth It?

Most homeowners who added a guest home to their property love the addition.

A guest house often pays off by either providing a dedicated place for friends and family to stay and/or serving as an income property.

A guest house can also add significant value to your home.

You’re adding square footage to the home, which will always add value if you ever plan on selling your home.

Luxury Guest Home Building Process Made Easy

If you love to entertain, then a guest house is a must.

Whether you have out-of-town family or friends staying overnight, a guest home can make their stay much more comfortable.

They will love having their own space to relax and enjoy the amenities of luxury accommodations right in your backyard. 

Before beginning the luxury guest home building process, it’s important to have all of your questions answered.

These are sure to help you make the decisions to build the perfect guest house for you.

Find luxury just footsteps away from your door with 4 Gen Homes.

We will gladly create your customized dream home.

Request a consultation to start the process today.


Do you love to entertain, or have frequent out-of-town guests? A guest home can provide you and your visitors with a more enjoyable experience. As and experienced luxury home builder and luxury guest home builder in Phoenix and surrounding areas we can confidently assist with your project . We have proudly been serving and supporting valley homeowners for 20+ years with custom luxury home building projects and luxury remodels.  Contact us to set up a consultation. Call (602) 694-7030 today!