What are ADUs and what impact have they had on homeowners?
ADUs- Accessory Dwelling Units are on the rise and have played an important role in addressing access to affordable housing for many families. In California, regulators see the construction of ADUs as a possible solution to the housing crisis in the state.
ADUs are affordable types of homes to construct in California because they do not require the homeowner to incur costs such as paying for land, major new infrastructure, structured parking, or elevators. Upon construction, an ADU should add a source of income for the homeowner while providing people with an option for affordable housing.
What are the developments in laws governing approvals of an ADU?
It is now incredibly fast to get approval to construct ADUs as compared to the past where the decision would take at least 120 days, the new law requires the decision be made in 60 days. This is a relief to many homeowners as the backlog of ADU applications can finally get approved meaning an opportunity for income generation assets.
How much value does an ADU add to a property?
The impact of adding ADUs to single-family properties is that the property’s value increases. However, ADUs do not necessarily add value to the value of a property as they can require a lot of money to construct.
Although market-rate rents for ADUs tend to be slightly higher than those of similarly sized apartments, they represent the most affordable rental choice in neighborhoods with single-family houses.
Why build an ADU?
In many cases, it is not sustainable for the elderly or low-income families to live independently in a household. An ADU provides a very realistic and practical option for the family if they want to provide support without being overbearing since the house can preserve a significant degree of autonomy for the person living there.
What is the future of ADUs?
With the rising prices of rentals and prices of properties sky-rocketing at a high rate, ADUs are likely to become an even more popular trend in the coming years as demand for affordable, multi-generational living space grows.
