
Understanding Accessory Dwelling Units (ADUs): A Comprehensive Guide
Accessory Dwelling Units (ADUs) are gaining increasing attention as a sustainable and adaptable housing solution. These units, sometimes called granny flats, in-law suites, or secondary suites, are small residential units on the same lot as a primary dwelling. ADUs provide a flexible space that can serve multiple purposes, including offering affordable housing, creating rental income, or providing housing for elderly relatives who wish to live independently but close to family.
The concept of accessory dwelling units is not new. These structures have been used for centuries in different cultures worldwide, with varying degrees of popularity. In the early 20th century, ADUs were commonly seen in urban areas. However, the rise of suburban development and restrictive zoning laws after World War II led to a decline in their prevalence. Today, with the ongoing challenges of housing shortages and rising costs in many regions, ADUs are experiencing a resurgence as both a practical and innovative solution to housing issues.

Types of Accessory Dwelling Units
ADUs come in various forms, each offering unique advantages depending on the property and the homeowner’s goals. These include detached, attached, and interior units.
Detached ADUs
Detached ADUs are standalone structures located on the same lot as the primary residence but are separate from it. These units often include backyard cottages, garden houses, or converted garages. They are fully self-contained and typically have entrances, kitchens, and bathrooms. Detached ADUs are ideal for homeowners who want to maintain privacy and independence while benefiting from the additional housing unit. In many cases, detached units are designed to blend seamlessly with the surrounding landscape, offering an appealing balance of functionality and aesthetic appeal.
Attached ADUs
Unlike detached units, attached ADUs are integrated into the existing structure of the primary residence. These units may occupy spaces like basements, attics, or even portions of the garage that can be converted into separate living areas. The benefit of an attached ADU is that it usually costs less to build, as much of the necessary infrastructure is already in place. Additionally, since attached ADUs share walls with the primary home, they can be easier to heat and cool, offering energy efficiency.
Interior ADUs
Interior ADUs, also known as internal units, are self-contained spaces within the main home. These units often utilize existing space, such as unused basements, attics, or even large closets, which are converted into fully functional living areas. Although smaller than detached or attached units, interior ADUs can be an excellent option for homeowners looking to maximize underutilized areas within their property without needing major construction or expansion.
Benefits of ADUs
The growing popularity of ADUs is driven by their numerous benefits, which can address a wide range of housing challenges. These include affordability, support for aging populations, opportunities for additional income, and sustainability.
Affordable Housing
One of the primary reasons for the resurgence of ADUs is their potential to provide affordable housing options, particularly in urban areas where housing prices are soaring. ADUs offer a smaller, more cost-effective alternative to traditional housing, making it easier for people to find places to live in high-demand areas. These units can be rented out to tenants, providing a more affordable housing option than larger, more expensive homes or apartments.
Support for Aging Populations
As the population ages, the need for housing solutions that allow seniors to “age in place” is becoming increasingly important. ADUs provide an excellent option for elderly individuals who want to maintain independence while staying close to family. A family member can live in the ADU, which can be adapted for specific needs, such as wheelchair accessibility or features for mobility aids. This allows elderly individuals to live in a familiar community environment while benefiting from the support of their families.
Additional Income
For homeowners, building an ADU can offer an opportunity to generate rental income, which can be used to help pay off a mortgage or cover property maintenance costs. In some cases, the revenue generated from renting out an ADU can be substantial enough to offset a large portion of a homeowner’s expenses. This can be particularly valuable in areas with high property taxes and cost of living.
Sustainable Living
ADUs also contribute to a more sustainable way of life. Since they are typically smaller than traditional homes, they use fewer resources for heating, cooling, and maintenance, which can result in lower energy consumption and a smaller carbon footprint. Additionally, the construction of ADUs often uses existing infrastructure, reducing the need to build new roads, utilities, and other facilities that contribute to urban sprawl.
Challenges and Considerations
While ADUs offer significant benefits, several challenges and considerations must also be considered. These can include zoning restrictions, design concerns, and the capacity of existing infrastructure.

Zoning and Regulations
Local zoning laws and building codes majorly determine whether an ADU can be built on a particular property. These regulations vary significantly by location. In some areas, zoning laws are restrictive, making building an ADU difficult or even impossible. In others, the rules may be more lenient, making it easier to construct these units. Many municipalities are beginning to relax their ADU regulations due to the growing demand for affordable housing, but navigating these laws can still be a challenge for property owners.
Design and Integration
When constructing an ADU, it is essential to ensure that the new unit complements the existing property and the neighborhood’s overall aesthetic. The design should consider size, layout, and architectural style. A well-designed ADU can enhance the property’s value and integrate seamlessly with the surrounding homes. On the other hand, a poorly designed unit may create tension in the neighborhood or even violate local building codes.
Infrastructure and Utilities
Another consideration when adding an ADU is the ability of existing infrastructure to support the additional unit. This includes ensuring enough water, sewage, and electrical capacity to meet the needs of both the primary residence and the ADU. In some cases, significant upgrades to infrastructure may be required, which can increase the overall construction cost. Additionally, homeowners should consider the environmental impact of adding an ADU, mainly if it involves increasing water or energy consumption.
ADU Regulations in California
California has become one of the leading states in promoting the development of ADUs due to the significant housing crisis in many parts of the state. The state has passed several laws to streamline the process of building ADUs, including SB 1069 and AB 2299. These laws limit the ability of local governments to prohibit the construction of ADUs, making it easier for homeowners to build them.
State Legislation
California’s state laws provide a general framework for ADU development, intending to make it easier to build these units while maintaining some level of oversight. These laws have helped to reduce bureaucratic hurdles and costs, which can often deter homeowners from pursuing ADU projects. For instance, these laws have made it easier for homeowners to convert existing structures like garages or basements into ADUs without requiring extensive permits.
Local Ordinances
Although state laws have created a more permissive environment for ADU construction, local municipalities still can impose additional regulations or restrictions. These can include rules regarding setbacks, height limits, parking requirements, and the number of ADUs allowed on a property. Homeowners must consult their local zoning laws to understand the specific rules and regulations that apply to their area.
Steps to Building an ADU
Building an ADU involves several key steps, from understanding local regulations to completing the construction process. Each step is crucial to ensuring the project succeeds and meets all necessary legal and regulatory requirements.

Research Local Regulations
The first step in building an ADU is researching local zoning laws and building codes. These regulations will dictate whether or not you can create an ADU and what restrictions may apply. Consulting with your local planning department is essential to understanding what is required in your area.
Design the Unit
Once you understand the regulations, the next step is to design your ADU. Working with an architect or designer can help you create a plan that meets both your personal needs and the regulatory standards set by your local municipality.
Obtain Permits
Before beginning construction, you must obtain the necessary permits from local authorities. This may include construction, electrical, plumbing, and other systems licenses. Be sure to submit all required documentation and pay any applicable fees.
Hire Professionals
Hiring qualified contractors is essential to ensure your ADU is built to code and meets all necessary standards. Look for contractors with experience in building ADUs, as they will be familiar with these projects’ specific requirements and challenges.
Construction and Inspection
The final step is construction, which should be closely monitored to ensure the project progresses according to plan. Regular inspections will also ensure the ADU meets safety and building code standards.
Conclusion
Accessory dwelling units (ADUs) are versatile and practical solutions to a variety of housing challenges. They provide affordable living options, offer additional income opportunities, and support aging populations. However, building an ADU requires careful planning and consideration, especially regarding local regulations, design, and infrastructure. With the right approach, an ADU can be a valuable addition to your property, helping to address housing needs while enhancing the overall value of your home.

Jason Somers, President & Founder of Crest Real Estate
With over 15 years of professional experience in the Los Angeles luxury real estate market, Jason Somers has the background, judgement and track record to provide an unparalleled level of real estate services. His widespread knowledge helps clients identify and acquire income producing properties and value-ad development opportunities.
Learn more about Jason Somers or contact us.