California’s Accessory Dwelling Unit (ADU) law underwent significant changes in 2020. The new law is very prescriptive, it allows property owners to bypass a wide range of local planning and zoning rules to construct ADUs and Junior accessory dwelling units (JADUs). JADUs are smaller ADUs, not more than 500 sq. ft. in size.

While creating more affordable housing is one of the main driving tenants behind ADU registration, there is another aspect that should also be included in the discussion. This would be the benefits available to “The forgotten middle-class homeowner”. Besides Californias critical housing shortage it is also suffering from an affordability crisis. Although the general economic headwinds are blowing in a very favorable direction now, our affordability problem is already having a major negative effect on the real estate market. When the prices get beyond the reach of the middle-class buyer, the market reacts and housing prices get driven down until the market reaches a new equilibrium point. This is where the ADU opportunity can help.