Those who are part of the real estate landscape will tell you that it is very volatile. It continuously embraces new trends, but that doesn’t mean that all of them are permanently adopted.
Some stick for a while, yet some quickly go away. Every so often, a trend arrives that completely transforms the housing market and influences the way people live and function within their communities.
A trend that gradually crept in and totally took over this landscape, especially in California, is the Accessory Dwelling Unit, also known as ADU. It’s safe to say that it has become a defining feature not only in California’s housing market but in general.
If you’re wondering why this state, like so many others, was blown away by this hot trend, then stay with us, because this informative guide is about to unveil all the charms that Accessory Dwelling Unit offers.
Let’s Define It First!
ADUs can be described as secondary housing units that are typically situated on the same lot as a primary residence. There are several types of these units, and the most common ones include:
- Attached units – These represent an extension to the main house
- Detached units – Standalone constructions, similar to guest houses
- Converted areas – Basements, garages, or attics that are turned into traditional living spaces
Even though ADUs aren’t very large, in fact, they are relatively small, they are functional just as any other home, because they come with a bathroom, kitchen, and other living areas that are usually seen in any average household.
California And The Housing Crisis
In order for you to better understand why Accessory Dwelling Units are currently so high in demand in this state, it’s of huge importance to first get a grasp of the various housing challenges California deals with that are far from smooth sailing.
For many, many years, it faced a serious housing shortage. Strict zoning laws, rapid population growth, environmental rules and regulations, and other factors have made a perfect storm of restricted supply, yet massive demand.
So, what were the consequences of it? Ultra-expensive properties, increased rental rates, and the rise of homelessness. Take these facts into account when thinking about the crisis that hit California’s housing market:
- Its biggest cities, such as San Diego, Los Angeles, and San Francisco, are constantly considered among the priciest cities in the United States when it comes to house prices.
- Median house prices in this state are approximately $800,000, which is more than double the national average.
All of these hurdles became too much for this state; hence, it decided to hunt down alternative solutions that will not only cater to the needs of the prospective homebuyers, but policymakers, too.
And that was the moment ADUs stepped in and offered something that was difficult to resist due to numerous advantages that are about to be further explored.
ADUs Are Extremely Flexible And Diverse
One of the perks of resorting to ADUs lies in the fact that they are very flexible and versatile. Many homeowners utilize them for rental income, to build home offices, guest houses, and, at times, also for living spaces.
What’s generally great about accessory dwelling units is that they are pretty adaptable, which makes them even more appealing. It doesn’t matter whether you want to create an additional workspace or you could simply use steady, extra income; ADUs will accommodate any of your needs as far as this is concerned.
Of course, in order for your goals to be achieved, you first need to hire a resourceful and seasoned ADU builder. Those who live in San Diego should conduct thorough research to find a reliable ADU builder in San Diego who has a plethora of experience when it comes to home remodeling & design. When that’s the case, practically any space can easily be converted into anything your heart desires.
For instance, many people, all of a sudden, decide they want their guest house to become a home office, which can be easily accomplished due to the flexibility that ADUs provide. In addition, accessory dwelling units can effortlessly blend with your house, maintaining aesthetic continuity, without negatively impacting its functionality.
The bottom line is that these units are perfectly capable of maximizing your space, without needing to deal with time-consuming remodeling.
They Provide Much Faster Permitting
Pre-approved ADU plans can drastically accelerate the permitting process in most jurisdictions. Homeowners who decide to make use of these pre-approved plans are able to bypass many review and design phases, which will help them get their permits much faster. Pre-approved ADU plans provide faster permitting for these reasons:
- These plans have already been inspected to determine if they adhere to the relevant building codes and zoning regulations, which means that it’s completely unnecessary to conduct any extensive review during the permit application.
- Since there aren’t a lot of things that need to be reviewed, the building department can quickly process permit applications for accessory dwelling units.
- When things go fast (as far as this goes), then this results in much lower permit fees, due to the fact that certain jurisdictions charge based on the amount of time they spend reviewing these applications.
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California Has An Excellent Legal Support
One of the biggest reasons why this state has fully embraced ADUs is the legislative reform. Back in the day, most local jurisdictions made it quite hard and expensive for people to construct secondary units on their properties.
That’s because they were facing a lot of hurdles and restrictions, which made it extremely hard for them to even consider building ADUs, let alone anything else. Thankfully, the situation has dramatically changed in 2016, when the state legislature started passing different bills to streamline the construction of these units. This included the following:
- AB 2299 and AB 2406 – They simplified the entire permitting process and permitted Junior ADUs within existing properties.
- SB 1069 – This one decreased utility connection fees, along with the parking requirements.
- SB 13, AB 68, and AB 881 – These are the newest, and they further lowered regulatory restrictions and, concurrently, allowed up to two accessory dwelling units on a particular property.
Previous laws that were used in California deterred homeowners from building ADUs; however, once the aforementioned laws came into play, they encouraged them to reconsider this option.
For the first time in (almost) forever, constructing a small rental unit suddenly didn’t seem like mission impossible, but rather as something that could finally be accomplished.
They Have A Fantastic Rental Income Potential
Here’s another benefit that was briefly mentioned before, which stimulates homeowners to invest their money into these units. Namely, they could potentially be an amazing source of rental income.
If you add them to your property, they can bring you a nice sum of cash. And what’s great about them is the fact that you’re the one who gets to decide if you’re going to rent them short-term or long-term.
Whatever your decision may be, you can rely on ADUs to further strengthen your financial situation. In case you didn’t know, renting out accessory dwelling units can offset your mortgage payments, and in some instances, they can cover them completely.
Generally speaking, having these units in your life is always a great idea, particularly if you live in neighborhoods that are very expensive. Then every additional penny counts, right? Speaking of them, they frequently come with very low maintenance costs, especially as opposed to conventional rental properties, which makes them an ideal option for anyone who aspires to maximize their ROI.
Another thing that’s worth mentioning is the fact that ADUs will undoubtedly boost the value of your house. How come? Well, that’s because the vast majority of homebuyers value properties that come with them because they find them more aesthetically pleasing, plus, they know that with them, they’ll have another source of income, which is definitely a huge bonus for them!
The Size Is Also Another Convenience
Another major reason why ADUs are rapidly climbing the popularity charts is this one. The size of an accessory dwelling unit can range anywhere from 400 square feet to a staggering 1,200 square feet.
Most of them are normally around 1,000 square feet or even smaller. Although they can (obviously) be very large, the truth is that most of them can be defined as one-bedroom apartments.
In order to define the place, you reside as an ADU, it needs to have at least one sleeping room, and it needs to be equipped with a kitchen and bathroom, as well. Now, if by any chance you are not planning on utilizing your ADU as rental income, you can always repurpose it.
There are lots of people who employ accessory dwelling units are home offices, painting studios, guest houses, and many other things, which is fine, too! The point is that these units give you a plethora of awesome options when it comes to this, and it’s up to you to decide what you’re going to do with them.
Many People Leverage ADUs For Multigenerational Living
Here’s a solution that’s extremely practical and is intended for families who want to be close to each other, without being forced to live under the same roof. That’s something that you can easily accomplish with these units.
With them, you can divide your living space, allowing older folks to live independently, while still being in their vicinity. This is an idea that’s going to enable you to skimp on costs while still fostering the sense of community.
Those who have older parents they want to take care of should definitely consider this option, because it will allow them to watch over them, without compromising their privacy. On the other hand, if you live with your kids, who are old enough to be independent, yet who do not have the means to rent an apartment, then you can always resort to ADUs to give them the chance to live independently, while being just a few steps away from them.
As previously concluded, this is a cost-effective solution that’s not going to blow your budget, for sure. Instead of wasting your money on separate housing (or anything else that’s similar to it), you can simply obtain an ADU because it will help you accomplish your goals, without breaking the bank.
This will not only improve your financial situation but will also further strengthen your bond with your loved ones. It’s practically a win-win situation because you will still be independent, yet so close to each other, making sure that no family member feels left out or neglected.
ADU Will Accommodate Your Work And Lifestyle Habits
Another key reason why this emerging trend piqued the interest of not only Californians but many other people is that it is able to accommodate the work and lifestyle needs. You are probably aware of how things have changed during the pandemic and after it, in terms of the housing market.
A lot of people, all of a sudden, realized that their preferences have changed as far as the housing demand is concerned. They wanted to live in homes that are far more functional than they used to be.
So, what does this mean? It means that they wanted their houses to be multi-functional and multi-practical. They didn’t want them to be the traditional properties we are all used to, but to be capable of being so much more than that, such as guest suites, home offices, etc.
And as concluded above, that’s precisely what accessory dwelling units can provide. For example, if you want to have an extra area where you’ll be able to solely focus on your work-related tasks, you can always harness these units and create an office space where you can get the job done. They are designed to accommodate your every need, regardless of what it is.
As stated in the beginning, there are trends that are pretty fleeting, that do not leave any lasting impression or impact. Well, that’s certainly not the case with ADUs, because it’s more than evident that they are here to stay!
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