ADU Regulations

ADU Zoning Rules for Columbia County, Oregon

Doing some research for a recently project had us looking up ADU regulations in Columbia County in Oregon. I’ve shared the actual code language below to make it easier for you to find the information you need. In general, this is one of the more restrictive ADU codes we have found . It sounds like the people who wrote this code either don’t want ADUs, or are listening to NIMBYs or others who are anti-ADU.


The actual zoning language:

224 Accessory Dwelling Units

  1. One accessory dwelling unit is allowed in conjunction with a detached single-family dwelling on a lot zoned for single-family development within an Urban Growth Boundary (UGB) of a city. UGB areas have the following residential zoning districts: Single-Family Residential (R-10), Single-Family & Two-Family Residential (R-7), and Rural Residential (RR-5 and RR-2).

  2. An ADU shall contain a kitchen, bathroom and a living/sleeping area that is completely independent of the primary dwelling. Recreational vehicles are not allowed as an accessory dwelling unit. Creation of a new Accessory Dwelling Unit may be accomplished through any of the following methods:

    1. A. Attached to the primary dwelling by converting a single-family dwelling’s existing living area, attic, basement or garage;

    2. B. Attached to the primary dwelling by adding floor area to the existing single-family dwelling;

    3. C. Constructing a detached accessory dwelling unit on the developed site including siting of a manufactured dwelling;

    4. D. Converting an accessory building, or portion thereof, to an accessory dwelling unit; or,

    5. E. Constructing a new dwelling with an internal accessory dwelling unit and, ~ 24 ~

    6. F. Constructing a new dwelling and converting the existing dwelling to a detached ADU, provided both dwellings meet the minimum zoning requirements.

  3. The County will require the proposed Accessory Dwelling Unit to comply with the Gross Habitable Floor Area, and Owner Occupancy requirements as imposed by the City for the unincorporated portion of the City’s Urban Growth Boundary Area.

  4. Domestic Water:
    Documentation shall be submitted to LDS that the ADU can be served by an existing public or community water district or by a private well that has been recorded with the State of Oregon Water Resources Department. LDS shall also require a Will Serve letter from the community/city water purveyor verifying the ADU can utilize the water system.

  5. Sewage Disposal:
    The County Sanitarian shall review and approve the proposed method of onsite sewage disposal for the ADU for compliance with the applicable provisions in the Oregon Administrative Rules (OAR) 340-071-0205 for existing septic systems. If the ADU will utilize community sewer, documentation shall be submitted to the County that the affected city will provide sewer service.

  6. Access:
    The road access to all ADUs shall be reviewed and approved by the County Public Works Department and the affected city for consistency with the applicable provisions of the County Road Standards Ordinance and the Urban Growth Area Management Agreements between the affected city and Columbia County.

  7. Siting Requirements/Standards:
    The proposed ADU must comply with the underlying zone R-10, R-7, RR-5 and/or RR-2 Zones’ minimum yard setback requirements for primary dwellings. Height limitations and lot or parcel coverage requirements shall be the same as the underlying zone.

  8. On Site Parking:
    The ADU shall provide one additional on-site parking space if the primary dwelling has less than three available on-site parking spaces (inclusive of garage and driveway).

  9. Location of Entrances:
    For an attached ADU only one entrance to the residence may be located on the front of the dwelling facing the street, unless the primary dwelling contained additional door entrances before its conversion to an ADU. An exception is entrances that do not have access from the ground such as entrances from balconies or decks.

  10. Exterior Design and Appearance:
    ADUs shall maintain consistency with the primary dwelling. For an ADU that is created by an adding floor area to the existing primary dwelling, the ADU shall have the same siding and roofing materials and exterior paint colors as the primary dwelling. For a detached ADU the County will require compliance with clear and objective design and appearance regulations adopted by the City where the UGB is located. ~ 25 ~

  11. Divisions of Property:
    The division of a property containing an ADU shall comply with the minimum and applicable provisions of Zoning District and Subdivision and Partitioning Ordinance. Establishing a new ADU shall not allow the further division of RR-5 and RR-2 properties provided for in Sections 606 and 627 of the County’s Zoning Ordinance.

  12. Alteration:
    If an existing authorized detached accessory structure, or portion thereof, is converted into an ADU, it is exempt from the minimum setback standards for primary dwellings. Any floor area that is added to this structure must not increase the setback non-conformity. Proposed expansions are not eligible to be approved with a Variance to the setback standards for single-family development.

  13. Existing Non-conforming ADU:
    An existing, non-conforming second dwelling on a lot or parcel in any residential zone permitted by this section may be determined to be a conforming ADU through an approval process that includes the following:

    1. A. All necessary building permits and occupancy authorization is obtained to assure the ADU complies with the applicable fire, life & safety and building codes per the Oregon Residential Specialty Code and

    2. B. The ADU complies with other requirements of this section, such as size, floor area, water, sewerage, entry and access.

Commentary:

Their decision to impose style restrictions is terrible policy. In fact, I believe style restrictions should be illegal. It has nothing to do with protecting the health, safety, or welfare of the public and has no place in codes.

Further, the requirement to create an additional parking space is another sign that they don’t actually want to make building ADUs easy. In fact, this is an overreach by dictating how you can use your private property. Parking requirements make housing more expensive, directly lead to more traffic congestion, and have nothing to do with the health, safety, or wellfare of the public. Again, these types of regulations should be outlawed on the national level.

The only positive thing I can say about these ADU regulations is they at least allow ADUs. Other than that, this is an example of how to write a terrible ADU code that makes them harder to build and more expensive.

California ADU Regulations - 2024

Navigating the regulations that affect new ADU projects can be daunting. Each state, county, city or town has their own rules and regulations that affect these projects. However, some states are passing state-wide rules to aim to unify some of the restrictions and make ADU development easier. California is one of the states leading this charge as they aim to promote ADUs as an important part of addressing housing affordability challenges.

With the goal of making ADUs easier to build, California has been passing some great laws that have drastically changed the ADU rules. There are some big changes even from last year. In the article below we will discuss some of the updated rules. But first, let’s start with the basics.

What is an ADU?

ADU is an acronym for Accessory Dwelling Unit. Often called other names like casita, laneway suite, garden suite, granny flat, or even guest house, ADUs are secondary homes built on a property, which are accessory to the primary structure. Unlike tiny houses on wheels, ADUs are full houses and include permanent foundations, separate entrances from the main house, fully functional kitchens, full bathroom, space for sleeping (either a bedroom or space for a bed if the unit is a studio), plus full utilities (water, sewer, and electricity).

ADUs are typically built as rental units, houses for extended families, or homes for downsizing and aging-in-place. In many places they can also be used as short-term rentals like for AirBnB or VRBO, although some towns and cities prohibit this use as they want ADUs to be used as permanent housing.

California Regulation Changes for 2024

Where there once was a tapestry of different rules and regulations across the state, California has been working on passing ADU laws that are applied statewide. Government officials have seen the challenges of having so many different rules and restrictions, thus they have been working to pass laws that override local restrictions that were used to prohibit or significantly hinder the ability for some homeowners to add ADUs to their properties. Because ADUs provide a lot of benefits to both individual property owners as well as society at large, passing statewide regulations that are easy to meet is helping people build enough ADUs to significantly increase the housing supply across the state.

Owner Occupancy on the Property

Owners are no longer required to live on the property if they want to build an ADU and rent it out according to AB 976. Property owners can now build ADUs and rent out both the main house and the new ADU. California has removed this requirement statewide, meaning no local jurisdiction can make this a requirement. This is a win for those looking to add ADUs to properties they currently own but are renting out. We believe ADUs are great investment opportunities and this doubles down on that belief.

ADUs can be sold separately as Condos

We absolutely love this change and think it is a true game changer for ADUs. It is something we hope spreads nation-wide as a way to make more affordable starter homes available for purchase.

Basically, it is now possible to build a new ADU on a property, and then condoize all of the homes on the property to be able to sell them separately. Meaning, you can now develop ADUs as a for-sale product rather than just as a rental unit. This is great if you want to build an ADU as an investment but want to get your money out of the project relatively quickly.

In markets where housing prices are quite high, you could see situations where you may build an ADU for say $300,000, condoize the property, and then sell off the ADU for say $450,000. In just a year or two you could see a 50% return on your investment. Plus you are creating a home that can be purchased for a very reasonable cost compared to many homes on the market.

ADU Types that are now allowed in California

All residential properties are eligible to add an ADU. And depending on the size of the property you could build up to 3 ADUs on your property - one Junior ADU (JADU), one attached ADU, and one Detached ADU (DADU). You can also convert existing structures like garages into ADUs.

ADU Size regulations

There are different maximum size limitations based on the property and layout of the ADU. In all cases you should be able to build an ADU up to 800sf. Individual jurisdictions can’t limit ADUs to below that size but can pass local laws increasing the maximum size an ADU can be. The state has passed laws that if no maximum size is defined then the maximum size is automatically set at 1,200sf for detached ADUs. If you are doing an attached ADU you can build up to 50% of the floor area of the main house or 800sf, whichever is larger.

Furthermore, if you are converting an existing structure you don’t have to abide by ADU size limitations as long as you aren’t expanding the size of the structure. If you stay within the existing footprint you can have an ADU of any side. This is great news if you are converting a large garage, basement, or other existing space into an ADU

Property Setbacks for ADUs

Most properties have setback requirements for buildings that prevent you from building right up to the property lines. I am very much against property setbacks as they prevent us from building some of the best housing types, like attached row houses. Side setbacks especially should be illegal nation-wide. But that is a battle for another day.

For ADUs in California side and rear setbacks are set at 4’ unless a local jurisdiction passes a law reducing that. Places like San Diego have stated that there is a 0ft side and rear setback for ADUs!

The front setbacks are a bit more flexible and can still be set by each jurisdiction as long as it doesn’t hinder the property owner’s ability to build an ADU up to 800sf.

ADU Height Limits

Height limits get a bit more complicated as it depends on location of the property, existing structures, and the type of ADU. The following rules apply:

  • 16 ft height limit is the minimum for every ADU in California under any circumstance. Local jurisdictions can’t enforce a lower height limit. This most likely leads to a single story ADU although we have found some creative workarounds to get two-story ADUs within a 16’ height limit. Curious? Contact us for more information.

  • 18 ft heights are allowed if an ADU is within 1/2 mile walking distance from public transit or if the property already has a two story tall multi-family dwelling. 18’ tall ADUs can definitely be a two story structure.

  • 25 ft height limits are imposed if the ADU is going to be attached to the main residence. Even if the main house is taller, the ADU can only be 25’ tall.

Parking Requirements for ADUs

This is another area where we disagree with many of the regulations. Under no circumstances should parking be required on any property. It should be up to the property owner to decide if they want to build parking. Parking minimums are the dumbest laws and directly lead to more expensive housing and terrible environmental impacts. Parking requirements should be abolished nation-wide.

Alas, here are the rules:

  • Off-street parking is required for ADUs in most circumstances.

  • Exceptions:

    • If an ADU is within 1/2 mile walking distance from public transit

    • If the ADU is within a historical district

    • If the ADU is a conversion of existing space (like a basement or garage)

    • If the ADU is located within one block of a car-share vehicle

    • On street parking permits are required in your neighborhood but aren’t offered to the occupant of the ADU

  • If you are converting a garage into an ADU, you are not required to replace the lost parking space.

CalHFA ADU Grant Availability

The CalHFA ADU Grant provided up to $40,000 towards the soft costs of building an ADU (soft costs are things like design, permitting fees, etc.). It was so popular that the latest allotment of $25 million committed to the program was claimed in just a few days. Thus no more funds are available as of the start of 2024.

Considering the popularity of the program and the continued need for new housing there is a good chance that it will be refunded in the near future.

Fire Sprinkler Requirements for ADUs

Fire sprinklers aren’t required except in a few circumstances. If they are required in the main house then they are also required in the ADU. Also, if the ADU is built far enough away from road or driveway access a sprinkler system may be required. This is due to access to the structure by the fire department and access for their trucks combined with length of fire hoses. If your ADU will be located more than say 150’ away from the street you may need to install sprinklers. Contact your local building department to verify the specifics of your project.

ADUs are now allowed on multi-family properties

All multi-family properties are now eligible to have ADUs. In fact, you can add at least one ADU by converting existing space in the building and you can add up to two additional detached ADUs. It gets even better. If the multi-family building has more than 8 units, you can add up to 25% of the number of units in the existing building. Example: if you have a 12 unit apartment building you can add up to 3 ADus (25% of the existing units).

Solar Panel Requirements for ADUs

When building a detached ADU it is required that you have solar panels on either the ADU or the main house. However, there are some exceptions for prefab ADUs or Modular ADUs. There aren’t solar requirements for basement ADUs, or JADUs.

Ready to start your ADU Project?

At Modern ADU Plans are here to help you achieve your goals and have a successful ADU project. Head over to our ADU store to find a beautiful ADU that meets your needs, or contact us if you are considering a custom designed ADU solution. We also offer some free resources on this website and consultations if you want to meet with an ADU design expert to ask questions.

Accessory Dwelling Units: Case Studies & Best Practices from BC Communities

Accessory Dwelling Units: Case Studies & Best Practices from BC Communities

Welcome to Modern ADU Plans! We are thrilled to share this excellent resource created by the BC Housing Research Center, titled: "Accessory Dwelling Units: Case Studies & Best Practices from BC Communities."

This comprehensive PDF document dives into the best practices for ADUs in British Columbia, Canada. Whether you're a homeowner, a builder, a designer, or a policymaker, this resource is designed to provide valuable insights and inspiration for leveraging ADUs to meet housing needs, enhance property value, and promote sustainable community development.

From innovative design solutions to regulatory considerations, this research report highlights the diverse approaches and successes in integrating ADUs within BC communities. By sharing these examples, we aim to empower our readers with practical knowledge and ideas that can be applied to their own projects and initiatives.

We encourage you to download "Accessory Dwelling Units: Case Studies & Best Practices from BC Communities" and explore the wealth of information it offers. We believe that ADUs have the potential to make a meaningful impact on housing accessibility and urban development, and we are excited to share these valuable insights with you.

—-

Stay tuned for more updates, resources, and expert insights from Modern ADU Plans as we continue to explore the dynamic world of accessory dwelling units. Thank you for your interest, and we hope you find this document insightful and valuable.

Best regards,
The Modern ADU Plans Team

What Does ADU Stand for (in housing, in real estate, in building)

In the dynamic landscape of housing and real estate, the acronym "ADU" has been gaining prominence, offering homeowners a unique avenue to enhance their property value, generate supplemental income, and contribute to the ever-evolving concept of sustainable urban living. ADU, or Accessory Dwelling Unit, is a term that carries profound implications for homeowners, architects, and urban planners alike. As an ADU design expert, it's my pleasure to shed light on what ADUs stand for in the realms of housing, real estate, and building, and why homeowners should consider embracing this transformative concept on their property.

What Does ADU Stand For?

At its core, ADU stands for "Accessory Dwelling Unit." This term encapsulates a versatile and innovative concept in housing design and urban planning. Accessory Dwelling Units are additional, self-contained living spaces that exist on the same property as the primary residence. These units can take various forms, including standalone structures (detached ADUs), garage conversions, or basement apartments (attached ADUs). The essence of ADUs lies in their ability to provide homeowners with an auxiliary living space that is functionally independent to the main dwelling but resides on the same property.

ADUs in Housing: A Revolution in Living Spaces

In the realm of housing, ADUs represent a departure from housing models that proliferated after WWII when suburbs led to the rise of single family homes. In some ways ADUs reintroduce more historically common housing types. They offer a pragmatic solution to the growing challenges of housing affordability, urban density, and shifting demographics. By allowing homeowners to leverage their existing property to create additional living quarters, ADUs provide an avenue for multigenerational living, rental income, a private space for aging parents or adult children, or even space for short term guests or work-from-home office space.

One of the defining features of ADUs is their flexibility. Whether a detached backyard cottage, a converted garage, or an added unit within the existing structure, ADUs adapt to the specific needs and constraints of the homeowner. This adaptability makes them a powerful tool for homeowners looking to maximize the utility of their property.

ADUs in Real Estate: Elevating Property Value and Market Appeal

From a real estate perspective, ADUs have emerged as an asset that significantly enhances a property's value and market appeal. In a landscape where housing shortages and rising property prices are prevalent, having an ADU on your property can be a game-changer. Real estate experts increasingly recognize the added value that an ADU brings to a property, making it a sought-after feature among homebuyers.

The additional income potential from renting out the ADU provides homeowners with a sustainable and ongoing return on their investment. Moreover, the ability to market a property with an ADU as a versatile and income-generating asset sets it apart in a competitive real estate market.

ADUs in Building: Embracing Sustainable and Smart Design

In the context of building, ADUs embody the principles of sustainable and smart design. As cities grapple with issues of urban sprawl and environmental impact, ADUs present a compelling alternative. By utilizing existing land and infrastructure, homeowners can minimize the environmental footprint of their living spaces.

ADUs also encourage thoughtful design that optimizes space, energy efficiency, and resource use. Whether constructing a new standalone unit or repurposing an existing structure, the building process for ADUs often involves innovative solutions that prioritize functionality, aesthetics, and environmental consciousness.

Why Homeowners Should Consider Building an ADU

Now that we've demystified the acronym, the question naturally arises: Why should homeowners consider building an ADU on their property? The answer lies in the multifaceted benefits that ADUs bring to the table.

  1. Supplemental Income: ADUs offer homeowners the opportunity to generate supplemental income through rental arrangements - either short term like AirBnb or VRBO, or long term leases. This additional income stream can be a powerful financial tool, helping homeowners offset mortgage costs or fund other investments or just contribute to their cost of living.

  2. Flexible Living Spaces: As families evolve and dynamics shift, the need for flexible living spaces becomes increasingly important. ADUs provide homeowners with adaptable spaces that can serve a variety of purposes, from housing extended family members to creating a home office or studio.

  3. Property Value Enhancement: The addition of an ADU can significantly increase the overall value of a property. Real estate markets value properties with ADUs for their versatility, income potential, and the flexibility they offer to future owners. Properties with ADUs sell for significantly higher prices.

  4. Urban Density and Sustainability: In urban areas, where available land is limited, ADUs offer a sustainable solution by maximizing the use of existing space. They contribute to more efficient land use, reduced urban sprawl, and a lower environmental impact compared to traditional housing models. In places like Vancouver, Chicago, or Toronto, ADUs or “laneway suites” are already popular ways to add new housing to historic neighborhoods. While cities like Los Angeles, Seattle, and Portland are seeing a huge increase in ADUs in backyards across their historically single family properties.

  5. Multigenerational Living: The concept of multigenerational living is gaining traction, with families recognizing the benefits of shared spaces. ADUs provide an ideal solution for multigenerational households, offering a balance of independence and proximity. This is great for adult children who want a starter home, or for aging family members who would rather live close to family rather than move into a retirement community.

  6. Future-Proofing Your Property: Embracing the concept of ADUs positions homeowners at the forefront of a housing trend that is gaining momentum. As cities explore innovative solutions to housing challenges, properties with ADUs become increasingly valuable and desirable. It allows you to change how you use your property over time. You may want rental income now, more space for a growing family in a few years, and a home for an aging family in a decade from now. ADUs give you all of these options as your family’s needs shift over time.

  7. Regulatory Support: Recognizing the potential of ADUs, many jurisdictions are revising zoning and building regulations to facilitate their construction. Homeowners building ADUs benefit from a supportive regulatory environment that encourages the integration of these units into residential properties.

In conclusion, understanding what ADU stands for is not merely an exercise in terminology but an exploration of a transformative concept that has the potential to reshape the way we live, build, and invest in real estate. For homeowners seeking a strategic and forward-thinking approach to property ownership, the addition of an ADU is more than an acronym; it's an investment in a dynamic and sustainable future. As an ADU design expert, I encourage homeowners to explore the possibilities that ADUs present, recognizing them not just as additional structures but as key contributors to a more resilient, versatile, and valuable living space.

This is the design that started it all for us. Our first ADU project, designed to be a short term rental unit on Airbnb. Located in NE Portland it has been a fantastic investment for the homeowner and a project we are proud to say launched our interest in this housing type.

FHA's Game-Changing Move: ADUs Now Help With Mortgage Financing

In a groundbreaking move that is set to transform the landscape of housing affordability, the U.S. Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), has unveiled a new policy that promises to open doors for homeowners and those aspiring to own a home. This new policy allows lenders to consider income from Accessory Dwelling Units (ADUs) when underwriting a mortgage, thereby expanding financing options for borrowers. It's a pivotal shift that will have far-reaching implications, positively impacting housing supply, generational wealth building, and access to homeownership, in line with the Biden-Harris Administration's goals.

Unlocking New Opportunities: The Role of ADUs

Under the new FHA policy, income generated from ADUs, whether they are housed inside, attached to, or situated on the same property as the primary residence, can be included in the borrower's qualifying income. This means that more borrowers can now qualify for FHA financing, including the 203(k) Rehabilitation mortgages, when the property in question includes ADUs. These auxiliary living units, which can be rented to tenants, contribute to the housing supply in communities, and this policy encourages their integration into homeownership strategies.

A Win-Win Scenario: ADUs and Generational Wealth

This innovative policy is set to benefit a wide spectrum of potential homeowners, including first-time buyers, seniors, and intergenerational families. By embracing the power of ADUs, these individuals can enhance their generational wealth-building potential through homeownership. It's a win-win scenario that aligns perfectly with the Biden-Harris Administration's Housing Supply Action Plan, emphasizing the importance of addressing affordable housing challenges and increasing access to homeownership.

Impactful Policy Highlights

The new FHA policy brings several key provisions:

  1. ADU Rental Income Inclusion: It allows for 75% of the estimated ADU rental income to be considered for qualifying for an FHA-insured mortgage on a property with an existing ADU. This flexibility opens doors for homebuyers with limited incomes, enabling them to leverage the income generation potential of properties with ADUs.

  2. ADU Integration into Standard 203(k) Rehabilitation Mortgages: Homebuyers planning to add a new ADU to an existing structure can now qualify for a mortgage under FHA's Standard 203(k) Rehabilitation Mortgage Insurance Program by considering 50% of the estimated rental income from the new ADU. This empowers homeowners with limited incomes to create ADUs, securing homeownership and bolstering ADU production as rental housing.

  3. ADU Appraisal Requirements: The policy introduces ADU-specific appraisal requirements to ensure that appraisers can accurately identify, analyze, and report on ADU characteristics and expected rent. This step will help appraisers more precisely determine the market value of properties with ADUs and contribute to the growth of ADU valuation.

  4. ADU Financing for New Construction: Under this policy, ADUs are now included in the list of improvements that can be financed under FHA's mortgages for new construction. This significant provision means that new homes can be constructed with ADUs from the ground up, offering an essential source of ADU production.

FHA-approved lenders are set to implement these policies immediately, providing borrowers with expanded opportunities for securing homes that include ADUs. This landmark shift not only recognizes the importance of ADUs in addressing the affordable housing crisis but also signifies the government's commitment to supporting housing solutions that benefit a diverse range of Americans. It's a policy change that underscores the transformative potential of ADUs in the realm of homeownership and housing affordability.

Rental income from ADUs can now help families qualify for mortgages.

Accessory Dwelling Units: Lessons From Around The Country

The Harvard Joint Center for Housing Studies hosts a video seminar titled:

Accessory Dwelling Units: Lessons From Around The Country

Although accessory dwelling units (ADUs) can address a host of housing challenges, zoning and land-use regulations often stymie homeowners who want to build them. Places like Portland, Oregon have removed restrictions and states including California, Maine, and Connecticut have new laws requiring local approval of ADUs that meet basic, statewide standards. In this talk, Ellie Sheild, a student research assistant at the Center, discusses her research on how these efforts might inform policymaking about ADUs in Massachusetts, where, in the absence of state guidelines, most cities and towns still restrict their construction. Jesse Kanson-Benanav, Executive Director of Abundant Housing Massachusetts joins Sheild in a conversation moderated by Chris Herbert, the Center’s Managing Director.

,

Legalizing ADU Sales in California: A Game Changer for Affordable Housing and Real Estate Investment

,

In a progressive move toward addressing the pressing issues of housing affordability and expanding homeownership opportunities, California has recently enacted Assembly Bill 1033 (AB-1033). This landmark legislation legalizes the sale of Accessory Dwelling Units (ADUs) constructed on a property, a concept already familiar in cities like Seattle and Portland. This development is a win-win for housing advocates, homeowners, and those aspiring to enter the housing market while simultaneously enhancing the investment potential of ADUs.

Unlocking New Possibilities: The Power of Legal ADU Sales

The legalization of ADU sales under AB-1033 signifies a significant step toward redefining homeownership dynamics and creating a more accessible path to building equity. This new legislation is particularly beneficial for those looking to break into the housing market, as it offers an innovative approach to property ownership. By allowing the separate sale of the main house and the ADU, homeowners gain an unparalleled level of flexibility.

Investing in ADUs: A Promising Proposition

The introduction of AB-1033 has also amplified the appeal of ADUs as a sound investment. Recent reports from the Seattle area offer a glimpse into the remarkable financial prospects associated with ADU sales. Sales prices for these units have exhibited a remarkable range, from $399,000 for a 493-square-foot attached ADU to a staggering $825,000 for a 1,010-square-foot detached ADU. These figures raise eyebrows, and for good reason.

In comparison to the typical construction costs, which generally fall within the range of $200,000 to $300,000 for a detached ADU, the resale prices translate into an exceptionally high return on investment. Consider this: if you leverage the equity in your home to build an ADU for $300,000 and, after a year of design, permitting, and construction, you are able to sell the unit for $600,000, you are reaping a 100% return on your investment in just 12 months. This presents an outstanding opportunity to generate wealth and make the most of your property.

Affordable Housing at Its Core

While the sale prices of ADUs may appear substantial when viewed in isolation, it's essential to assess them within the broader context of the housing market. In regions like Seattle, where median home prices for single-family homes surpass the $800,000 mark, ADUs represent a relatively affordable entry point for prospective homeowners. This trend, offering a more cost-effective means of securing property, is expected to ripple throughout California and other housing markets.

The Road Ahead

The introduction of AB-1033 and the increasing popularity of ADU sales underscore a compelling shift in the real estate landscape. As traditional housing becomes increasingly unaffordable for many, ADUs emerge as a pivotal solution to foster more inclusive homeownership. By creating an environment where starter homes are not only accessible but also financially viable, the housing market can become more attainable for a broader spectrum of families.

In summary, the legalization of ADU sales is more than just a change in legislation; it's a transformative force for affordable housing, real estate investment, and wealth creation. The ADU market, previously overlooked, is now emerging as a dynamic arena that not only provides new opportunities for homeowners but also addresses the growing need for housing affordability in an ever-evolving real estate landscape.

Detached ADUs can now be sold as a separate unit in cities throughout California. This is a game changer for ADUs as an investment and as a way to address housing affordability.

A Comprehensive Collection of ADU Links and Resources Across the US and Canada

Are you ready to embark on the journey of creating your very own Accessory Dwelling Unit (ADU) project? At Modern ADU Plans, we have curated an invaluable list of resources that outline a wide range of information and resources about ADU projects throughout the United States and Canada.

Whether you're a homeowner, builder, designer, or investor, the list below should lead you to some great information to make your project a success. And we will keep updating and adding to this list as we find more helpful information to share.