Homeowners who live in California live close to some of the most sought after and beautiful real estate to be found in the United States. Even so, the state has a housing issue as there is a significant lack of it. If you are a buyer who wants to buy a large piece of property or a homeowner that has a roomy backyard, you can easily repurpose that additional space to create a smaller, legal additional residence on the property.
Many first-time and experienced homebuyers alike will ask their agents what ADU stands for because the rules have only changed recently. In short, an ADU is an accessory dwelling unit that allows homeowners to enjoy an effective and affordable way to make their primary residence larger. Homebuyers can compete to buy properties that have ADU housing to bring in a source of passive income by doling out short-term rental agreements.
Homeowners are even able to have junior accessory units that are built right into their house, or they can purchase prefabricated units that have been installed on their property. Still, a lot of homeowners don’t know that the specifics of these units, meaning buyers will need to have a sturdy understanding of how to turn their backyards into dwellings that are still in compliance with state and local housing ordinances.
What is an accessory dwelling unit?
ADUs are known by a variety of names, including granny flats, secondary units, in-law units, backyard cottages, guest houses and beyond. At the end of the day, all of them refer to the same thing: an accessory dwelling space. ADU ordinances are overseen by the California Department of Housing and Community Development. This organization will legally define these units as affordable housing, which won’t require owners to buy any new land, extend parking, build a large infrastructure or an elevator. Californians can enjoy attached ADUs, basement ADUs, garages converted into ADUs, second-story ADUs or detached accessory dwellings.
The regulations were loosened in 2016, and because of that, property owners can apply for permits to create these spaces while enjoying more freedom over their creativity when brainstorming their new space. Those who are handy may even build their own ADUs as a project, though many Californians choose to hire a design firm as well as contractors to create these spaces and bring them to life.
What are ADUs used for?
In the past, homeowners built these units to make additional living space to accommodate aging parents, but the use of them has changed as time went on. Today, a lot of homebuyers will look for properties with ADUs for housing extended family members. Californians are more interested than ever in finding homes with these accessory dwelling units, or they may create their own short-term or long-term rental areas.
Alongside adding additional housing choices or bringing in passive income on a rental, well-off homeowners may build detached backyard homes to help fill out their compounds, offering a luxury place for guests to stay. Many also use them as a space to work from home or a personalized area for recreation and relaxation.
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Regulations and Rules for an ADU
Since the weather is beautiful and the landscape is attractive, many people come from all over the country to live in California. Contractors build around 80,000 homes each year in the state, though 100,000 are needed in order to keep up with the increasing population. ADUs were believed to be a solution for creating more space, though finding a permit for an ADU was hard due to the cities and towns with local ordinances that made it difficult to get a permit for them.
This changed in 2016 when SB 1069 passed on a state level, making it easier to apply for and create ADUs. Now, a single-family home is able to have one ADU on each property and can charge utility fees depending on whether or not the ADU is detached or attached. Furthermore, Californians are no longer obligated to build a 10-foot wide path that is separate from the street.
Because of this, the door has opened for homeowners to build ADUs in their homes or to create unique backyard spaces. Still, homeowners should check with their local ordinances, since not all locations have approved the full benefits of an ADU.
What are the benefits of an ADU?
The increase in ADUs has created a much-needed supply of housing options in California. Vacationers and renters alike have boho-style homes to stay in, providing sorely needed rental units for locals as well as new moves to the state. On a more personal front, homeowners can beautify their outdoor space for themselves.
Larger families can enjoy an ADU space that completes the property and keeps the family close without being too close. Other buyers in the future may benefit from turning it into an easy Cali vacation rental or a guest house for friends and family.
How To Build an ADU
Many detached ADUs use a wood frame and come with open floor plans to maximize the space, including large windows that let in plenty of air and light. Depending on the type and size of the ADU, there are many prefab options for buyers to choose from. On the other hand, wealthy homeowners can collaborate with architects to design their own unique spaces.
Average ADU Cost
The cost depends on the design, but homeowners can expect to spend a minimum of $20,000 while buying or building. Prefab units often begin at $20,000 and will grow in price depending on amenities and style. Homeowners should also consider insurance and land survey costs. It’s possible to get assistance with finances from lenders to build or modify their homes to include this type of housing.
