The Role of ADUs in Expanding Housing Supply

As California’s housing crisis intensifies, developers are increasingly turning to Accessory Dwelling Units (ADUs) as a creative solution. Once considered a niche housing option, ADUs have become a key feature in many new residential developments from master plans and infill communities to small-scale single-lot developments.

ADUs have gained a lot of traction and publicity in the last several years due to their ability to provide the flexibility to add additional housing opportunities or to some, that she-shed, man-den, or in-law unit to serve various lifestyle needs. Developers are embracing ADUs to address the state’s push for more housing, but also to increase property values and cater to changing market demands.

With the aid of architects and planners, developers are building homes where ADUs are seamlessly integrated into the overall community. These units are often an optional feature for homeowners, allowing for flexibility in living and purchasing arrangements. For instance, a single-family home might come with a predesigned space that can be easily converted into an ADU, offering potential rental income or housing for extended family.

Other developers are adopting this concept through ‘pocket communities,’ where clusters of ADUs are integrated alongside main residential units. This approach not only provides additional housing opportunities, but also creates a sense of community within the development where residents congregate in a centralized space through shared amenities such as parks, gardens, recreation spaces, all free of roadways and parking stalls.

A more recent approach gaining traction is the use of lot splits, which has become popular in the past two years. Developers and property owners can legally subdivide a single-family home lot into two parcels which can reduce much of the red tape associated with subdividing a lot. Each new parcel can then support its own ADU, further increasing housing density.

In response to the growing demand for ADUs, progressive cities in California have implemented programs that offer pre-approved standard plans. Developers and homeowners can take advantage of these programs to reduce project costs and accelerate construction timelines. Under these initiatives, pre-approved ADU plans can either be purchased from the designer or provided free of charge by the city, lowering the barriers to creating much-needed housing.

With California’s evolving ADU laws, developers along with their consultants are adept at navigating local and state regulations to ensure compliance while maximizing the potential of ADUs. By staying informed, being proactive, and partnering with consultants and architects, developers can streamline the approval process and successfully integrate ADUs into their projects.