Accessory Dwelling Units (ADUs) and other manufactured homes are an innovative and effective option for adding much-needed housing in California. Known by a variety of names such as granny flats, in-law units, backyard cottages, secondary units, and more, ADUs continue to grow in popularity and demand, especially in Southern California.

According to the state, California saw a 3% year-over-year increase in the number of ADU permit applications filed in 2022, and there were as many ADU permits filed over the past two years as there were in the four years prior to that. At HomeQuest, we anticipate that number to continue to grow.

ADUs remain a bright spot in housing, when prices and mortgage rates continue to be high, and inventory is tight. Traditional site-built home permits have declined in recent years and permits for ADUs are increasing. The Greater Los Angeles area, for instance, where real estate is at a premium, accounts for about 60% of all of California’s ADU permit applications. ADU growth in San Diego County is also strong.

In addition, constructing ADUs in California became easier this year with statewide updates providing more flexibility in where ADUs can be placed on a property, and the permitting process has become more transparent and streamlined.

As we’ve discussed here before, there are many benefits to owning an ADU, including:

• ADUs can provide a source of passive income for homeowners if rented out.
• ADUs allow multi-generational families to be near one another while maintaining privacy.
• ADUs can provide as much living space as many newly built apartments and condominiums, making them well-suited for young professionals, couples, friends, and seniors.
• ADUs give homeowners the flexibility of extra space without a major remodel or addition. The ADU can be used for a home office, gym, guest quarters, and more.
• ADUs are an affordable housing option because they do not require paying for land, major new infrastructure, or structured parking.
• ADUs are built to code with quality construction and materials but in a more cost-effective and eco-friendly manner than traditional site-built homes.

To learn more about ADUs and other manufactured homes, contact us at (866) 720-2207.