If you cannot find housing in California, consider ADU housing.
What does ADU mean in real estate?
ADU stands for accessory dwelling units. They’re small housing units for residents looking for affordable housing.
You can find these houses in small and large cities alike. ADUs can fulfill California’s increasing demand for housing.
You can also use the units as a home for extended family members. Think of them as a guest house or an in-law suite. You’ll also know them as granny-flats or backyard cottages. You can also add these structures to your yard separately.
This article will examine the benefits of ADU units in California. Let’s explore.
How Do ADU Units Work?
These units become less popular during the middle of the 20th century but have seen a resurgence in recent years. Further, they are great options for the following types of people:
- College students
- Young families
An ADU home is usually connected to a primary house. This connection allows occupants to use electricity and water of the primary residence.
In other cases, it can have independent electricity and water sources. Separate utilities will give occupants independence. Many ADU units are also elaborate and have plenty of space.
California leaders permit ADUs in many cities throughout the state. If you’re considering an ADU unit in San Jose, for example, visit Actonadu.com for more information.
Legally, the occupant cannot sell an ADU because it’s still part of the main residence. Therefore, only the primary owner can sell the unit.
What are JADUs?
In California, you’re also allowed to create a secondary residence within the home. This space is a junior accessory dwelling unit (JADU).
You can create JADUs within the walls of the home.
- Example: The state allows homeowners to convert garages or basements into JADUs.
However, JADUs cannot be more than 500 square feet. Overall, homeowners can add ADUs and JADUs on a single property.
When it comes to JADUs, many California homeowners add the following to a JADU unit:
- Electrical outlets
Moreover, JADUs don’t place additional stress on home utilities because homeowners are simply using space that already exists.
ADUs and JADUs can help renters find affordable housing. California allows homeowners to rent out ADU units to tenants.
California’s national rental average is around $1,420 a month and has gone up over the years. If you want to rent in big cities like San Francisco, rent is around $3,000 a month.
As a result, more people are being priced out of the state. Unaffordable housing isn’t good for California’s economy as more people leave the state. Additionally, many people who move to California end up being homeless.
However, homeowners can include ADU units to renters who need them. Plus, homeowners who want to downsize can live in an ADU and rent their primary residence.
The Covid Housing Crisis
Renters can also help homeowners stay in their homes. Due to the pandemic, many California homeowners cannot pay their mortgages.
Further, many renters have trouble making rent due to shutdown orders and/or layoffs. The government has implemented relief for homeowners and renters, but the relief is a band-aid solution.
Renters and homeowners can help one another using ADU units. Renters can stay in the units long-term and pay rent to the homeowner.
Also, renting from an ADU unit is usually cheaper than an apartment or condominium rental. In turn, homeowners stand a better paying their mortgage each month.
Supply and Demand
Before the pandemic, California has struggled to keep up with housing demands. The lacking supply and high demand have increased housing prices exponentially.
The median home price in California is around $600,000. This median price is over twice the national average. Moreover, stagnant wages and income have priced many Californians out of the housing market.
The housing dilemma has also bred a burgeoning homeless population, and California officials have failed to address the homeless issue.
There are many reasons behind California’s housing crisis, some of which include:
- Tax policies favoring established homeowners instead of new homeowners
- Outdated zoning ordinances that failed to accommodate a growing population
- Inefficient governance failing to foster the building of new homes.
The main problem is that builders haven’t constructed enough houses to meet rising demand. However, ADU units are a cost-effective solution that leads to long-term gains.
ADU units are long-term structures, and builders can make them in three months. The cost of an ADU unit is around $50,000 in large cities such as San Diego and Los Angeles.
Despite California’s defunct zoning practices, the state is updating the laws to permit more ADUs throughout the state.
Homeowners only need to apply for a permit to add an ADU to their property. Overall, California could house two million people if just 30% of California homeowners include an ADU unit on their property.
The Benefits of ADU Housing
ADU housing offers affordable living and increased housing. ADU units can provide shelter to more people in California. It will also mitigate the state’s public health crisis as more people have access to housing.
ADU units are connected to the main residence, or it may function as a separate structure. You can also attract renters by adding amenities and utilities to the structure.
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