One of Millbrae’s first post-war suburbs. Walking distance to downtown and BART/Caltrain. Compact vintage homes. Walk score 91. Garage conversions and small rear-yard ADUs.
ADU Construction in Millbrae — Where Higher Property Values Justify a Higher Standard of Construction
Millbrae is the most expensive city in the northern Peninsula for single-family homes — the median sale price sits around $1.9 million. At these values, an ADU isn’t just an income strategy — it’s an improvement to an asset worth nearly $2 million. The construction quality needs to match.
The Millbrae Standard
Where Every ADU Reflects Property Value
Millbrae’s name comes from Darius Ogden Mills, the banker whose 1,000-acre estate became the town, and “brae,” the Scottish word for rolling hills. Both the history and the terrain still define the place. Those rolling hills create Millbrae’s residential landscape: entry-level neighborhoods on the flatlands near downtown and El Camino Real, mid-tier post-war suburbs in the middle elevations, and premium hillside properties in the western heights with views across San Francisco Bay.
The housing stock spans from pre-war cottages near downtown to 1950s ranch homes in Meadow Glen to the larger mid-century and contemporary homes of Mills Estate and Millbrae Meadows, built from the 1950s through the 1980s and beyond. A poorly built ADU on a $2.2 million Millbrae Meadows property doesn’t just fail the tenant — it diminishes the property.
ACI is a design-build general contractor based in Pacifica. We build ADUs throughout Millbrae’s neighborhoods and understand that the standard here is higher than in the entry-level Peninsula cities. We handle site assessment, design, structural engineering, permitting, and construction — including the structural work with our own crew. For comprehensive information on ADU types, California ADU laws, costs, and our full process, see our ADU Construction hub page. This page covers what’s specific to building an ADU in Millbrae.
Neighborhoods & ADU Opportunities
Millbrae’s Neighborhoods and ADU Opportunities
Downtown and Entry-Level Flatlands — Meadow Glen, Bayside Manor, Marino Vista Park
Millbrae’s flatland neighborhoods sit east of El Camino Real, close to downtown Broadway, BART, and Caltrain. Meadow Glen is one of Millbrae’s first post-war suburbs — compact, well-kept homes from the late 1940s and 1950s, walking distance to downtown, with a walk score of 91. Bayside Manor and Marino Vista Park are on the eastern side, closer to Highway 101 and SFO, with some of Millbrae’s most affordable homes — smaller properties under 1,000 square feet on smaller lots.
ADU opportunity: garage conversion
The compact homes in these neighborhoods often have single-car garages that can be converted to studio or one-bedroom ADUs. The proximity to the BART/Caltrain station means ADUs within half a mile qualify for the parking exemption — no dedicated parking space required. This is a significant advantage on smaller lots where sacrificing a parking space would be impractical.
ADU opportunity: small detached unit
Where rear-yard depth allows (25+ feet behind the house after setbacks), a small detached ADU can work on these lots. The flat terrain keeps foundation costs lower than the hillside neighborhoods.
Mid-Tier Suburbs — Millbrae Highlands, Capuchino, Mosswood
Millbrae Highlands is one of the city’s original subdivisions, dating to 1927, with tree-lined streets and a mix of pre-war and post-war home styles — many are larger two-story homes within walking distance of downtown and the intermodal station. Capuchino and Mosswood sit at the transition between flatland and foothills, with post-war homes on lots that start to show some grade change.
ADU opportunities in these neighborhoods include both garage conversions and detached rear-yard units. The lots tend to be larger than the downtown flatlands, providing more flexibility for detached ADUs. The Highlands’ mature landscaping introduces a Millbrae-specific consideration: tree protection (covered in the permitting section below).
Premium Hillside — Millbrae Meadows, Mills Estate, Green Hills, Telescope Hills
Millbrae Meadows is the city’s pristine mid-century neighborhood — built from the 1950s through the 1970s on the western hillside behind Capuchino, with median home values around $2.4 million. Mills Estate is the high-end neighborhood at Millbrae’s southern border with Burlingame, featuring larger contemporary and mid-century homes with bay views. Green Hills and Telescope Hills are similar premium hillside neighborhoods.
ADU opportunity: detached rear-yard unit
These larger hillside lots often have the square footage for a substantial detached ADU — two bedrooms, 800 to 1,000+ square feet — with natural separation from the main house created by the slope. The hillside terrain means engineered foundations, retaining walls, and drainage systems, but the property values and rental rates justify the investment.
ADU opportunity: lower-level conversion
Many of the mid-century and raised ranch homes in these neighborhoods have lower-level space — garages, utility rooms, unfinished areas — at grade or partially below grade on the uphill side. Converting this space follows the same approach as the raised ranch conversions in San Bruno’s hillside neighborhoods: moisture management, fire-rated separation, adequate ceiling height, and natural light.
At $2+ million property values, the ADU in these neighborhoods needs to be built to a finish level that matches the main house and the neighborhood. This means quality materials, thoughtful design that complements the architecture, and construction detailing that performs long-term — not a prefab unit dropped into the backyard.
Transit & Rental Demand
The Intermodal Station and Rental Demand
Millbrae’s BART/Caltrain intermodal station is the largest transit hub west of the Mississippi. It’s the terminus of BART’s Peninsula extension and provides cross-platform transfers to Caltrain. It will also serve California High-Speed Rail when that system reaches the Peninsula. SamTrans buses, commuter shuttles, and SFO connections all funnel through this station.
For ADU rental demand, this matters more than any other single factor in Millbrae. A tenant in a Millbrae ADU can reach downtown San Francisco in 25 minutes by BART, San Jose in 45 minutes by Caltrain, and SFO in 10 minutes by BART. The intermodal station makes Millbrae uniquely accessible from multiple directions — it’s not just a BART stop (like Daly City or South San Francisco) or just a Caltrain stop. It’s both, plus the airport connection, plus the future high-speed rail.
via BART — Strong tenant demand
via Caltrain — Tech industry access
via BART — Commuter advantage
This transit infrastructure supports rental rates of $2,500 to $4,000+ per month for a well-built one-bedroom ADU, depending on size, finishes, and proximity to the station. ADUs in the flatland neighborhoods (Meadow Glen, Highlands, Capuchino) are the most transit-accessible, within walking distance of the station. ADUs in the hillside neighborhoods (Millbrae Meadows, Mills Estate) trade transit proximity for privacy and premium finishes.
Permitting
Permitting in Millbrae — More Steps Than Some Peninsula Cities
Millbrae’s ADU permitting follows state law but includes several city-specific requirements that add time and cost. Understanding these before design begins prevents surprises.
Development Impact Fees
The biggest cost surprise in Millbrae. ADUs under 750 sq ft are exempt under state law. ADUs of 750 sq ft or more are charged development impact fees proportional to the primary dwelling — based on the city’s Single Family Residential Fee of $77,215.61 (2024). Designing just below 750 sq ft eliminates this fee entirely.
School Developer Fees
All ADU permits for units exceeding 500 sq ft of new floor area must pay school developer fees to both the San Mateo Union High School District and the Millbrae Elementary School District. Receipts from both districts are required before the building permit can be issued.
Tree Protection
Millbrae has a protected tree ordinance (Section 8.60.060). An arborist report is required for any protected tree within 10 feet of a proposed ADU. On hillside lots in Millbrae Meadows, Mills Estate, and the Highlands — where mature landscaping is part of the property’s value — tree protection can constrain ADU placement.
SFO Noise Contour — STC 35
Any residential building within the 65 CNEL noise contour zone that is newly constructed must meet a Sound Transmission Class (STC) rating of 35. This applies to ADUs in Millbrae’s eastern neighborhoods closer to the airport. Specific window, wall, and door assemblies are required.
Seismic Design Category E
Millbrae falls within Seismic Design Category E, imposing stricter structural requirements than lower categories. This affects foundation design, framing connections, and shear wall requirements for detached ADUs. Our structural engineer designs to this category as standard practice.
60-Day Review & Electronic Filing
State law mandates 60-day action on a complete ADU application. Millbrae requires electronic submission and payment of plan review fees before review commences. Permits are submitted to the Building Division; the Planning Division handles ADU requirement questions.
Building Division: (650) 259-2330 | Planning Division: (650) 259-2341
Construction Challenges
Construction Challenges Specific to Millbrae
Millbrae Meadows, Mills Estate, Green Hills, and Telescope Hills are hillside neighborhoods with terrain that ranges from gentle slopes to significant grade changes. Detached ADUs on these lots require engineered foundations, retaining walls (often exceeding 4 feet, which triggers its own permit), and drainage systems that route water around and away from the structure. Material delivery on steep, curving residential streets requires logistical planning — concrete trucks, lumber deliveries, and equipment staging all need to be coordinated for the specific site.
This is less a construction challenge and more a market reality. A Millbrae Meadows or Mills Estate property with a $2+ million valuation sets an expectation for the ADU. The kitchen needs real countertops, not laminate. The bathroom needs tile, not a prefab surround. The exterior needs to complement the main house, not look like an afterthought. The difference between a $275,000 ADU and a $400,000 ADU on a premium Millbrae property is often the finish level — and at these property values, the premium finish preserves and enhances the property’s worth.
The same galvanized plumbing, undersized electrical, and aging foundations found throughout the Peninsula’s 1950s–1960s housing stock exist in Millbrae’s mid-century neighborhoods. On a garage conversion or lower-level conversion, we evaluate whether the existing infrastructure can support the ADU’s additional load or whether upgrades are needed. On the newer and rebuilt homes — some Millbrae properties have been substantially renovated or replaced over the decades — the existing infrastructure may already be adequate.
Investment
What an ADU Costs in Millbrae
For detailed cost breakdowns by ADU type, see our ADU Cost Guide. Here’s how those ranges apply to Millbrae:
Garage Conversion (Studio or 1-Bedroom)
The range reflects the difference between a basic conversion on a flatland lot and a higher-finish conversion on a premium property where the ADU needs to match the main home’s quality level. Millbrae conversions tend to trend higher on finishes than comparable conversions in Daly City or South San Francisco.
$150K–$275K+Detached ADU — Flatland (Rear Yard)
Standard foundation, framing, utilities, and finishes. Flatland lots near downtown have simpler site conditions. Development impact fees apply for units 750 sq ft or larger.
$275K–$425K+Detached ADU — Hillside (Rear Yard)
Retaining walls, engineered foundation, grading, drainage, and premium finishes for the western hillside neighborhoods. This is where Millbrae ADU costs exceed other Peninsula cities — the terrain adds structural cost and the market expects higher finish quality.
$325K–$500K+JADU (Within Existing Home, 500 sq ft or less)
Converting existing interior space with an efficiency kitchen. No school developer fees (under 500 sq ft). No development impact fees (under 750 sq ft).
$50K–$125K
Fee Thresholds Worth Knowing
Design under 750 sq ft to avoid development impact fees. Design under 500 sq ft of new floor area to avoid school developer fees. These thresholds can meaningfully reduce project cost without significantly reducing the ADU’s livability or rental value.
Neighborhoods
Neighborhoods We Build In
- 📍Meadow Glen
- 📍Millbrae Highlands
Original 1927 subdivision with tree-lined streets. Mix of pre-war and post-war homes. Walking distance to the intermodal station. Larger homes, mature landscaping (tree protection considerations).
- 📍Capuchino
Post-war homes at the flatland-to-foothills transition. Moderate lots. Near Capuchino High School. Good candidate for both garage conversions and detached ADUs.
- 📍Millbrae Meadows
Premium mid-century hillside neighborhood. Median home values around $2.4M. Curving streets, larger lots, bay views. Detached ADUs and lower-level conversions. High finish quality expected.
- 📍Mills Estate
High-end hillside neighborhood at the Millbrae-Burlingame border. Larger contemporary and mid-century homes. Bay views. Among the most expensive properties in the northern Peninsula.
- 📍Green Hills / Telescope Hills
Hillside neighborhoods with views. Mid-century and newer construction. Similar ADU opportunities to Millbrae Meadows.
Why ACI
Why ACI for Millbrae ADU Construction
We Understand the Tiered Market
A garage conversion in Meadow Glen is a different project than a detached ADU in Mills Estate — not just in construction complexity but in the finish level the property demands. We adjust the design, materials, and detailing to match the neighborhood and the property value.
Hillside Construction Is Core Work
The western hillside neighborhoods require the same engineered foundations, retaining walls, and slope management that we build throughout Pacifica’s coastal hills and San Bruno’s Crestmoor and Rollingwood. This is standard work for our crew.
We Navigate the Fee Structure
Millbrae’s development impact fees and school developer fees add cost that doesn’t exist in most other Peninsula cities. We help you understand the fee thresholds (750 sq ft for impact fees, 500 sq ft for school fees) and design to optimize the balance between unit size, fees, and rental value.
Design-Build Keeps It Simple
One contract covers design, engineering, permitting, and construction. We submit electronically to the Building Division, coordinate with the Planning Division, and manage the fee payments, school district receipts, and arborist reports as part of our scope.
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