Are ADUs worth it? Better detached or garage conversion?

Hello!
What do you think of ADUs? My take is that it’s a good opportunity for additional income but at the same time, one might not want to welcome strangers in their backyard. So if ADUs are usually for family, wouldn’t it be more interesting to convert the garage into a living space? Or the basement? To accomodate guests/family. What do you think? Who you do it/recommend doing it?

Also, forgot to ask but would permitting be different with existing garage conversion (instead of adding an ADU in the backyard)? And property taxes?

There have been a few ADU threads. The consensus is don’t do it. It costs more than it will add in value. It also makes the property multi-family and more likely to fall under rent control.

I can’t image anyone building an ADU or any rental property ever again. The arrogance of the state to force landlords to provide rent free housing up to one year has destroyed the whole concept of building affordable housing.
Of course those of us in the business have known for 30 years that affordable housing was just a political fantasy.
BTW garage conversion is illegal in most cities. Seems they are much more concerned about parking issues than housing issues.

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Hardly any ADUs have been built. Now thanks to tenants rights groups no rental housing will be built. Their greed and stupidity is cutting off their nose to spite their face.
If these tenants rights groups want credibility they should start building like Habitat for humanity.

Hello Housing is providing up to 100 hours of free feasibility and project management support to participating homeowners who want to add a second unit to their property.

Bright in Your Own Backyard San Mateo County is a One Stop Shop for homeowners who are motivated to add second units to their homes. Bright in Your Own Backyard San Mateo County offers services in the pilot communities of Pacifica, East Palo Alto, Redwood City and unincorporated San Mateo County.

​In December of 2020, the City Council of South San Francisco approved the Genentech Master Plan which included $1 million to advance the production of Accessory Dwelling Units. SSF’s Bright in Your Own Backyard ADU Program Services is now accepting applications for motivated homeowners who are ready to turn their dreams into reality.

Alameda County Board of Supervisors approved funding to bring Bright in Your Own Backyard to the unincorporated county. In partnership with Alameda County Housing and Community Development (“HCD”), Hello Housing will provide up to 100 hours of free feasibility and project management support to participating homeowners who want to add an Accessory Dwelling Unit (ADU or a Junior Accessory Dwelling Unit (JADU) to their property. Bright in Your Own Backyard will be launching in unincorporated Alameda County in late 2021.

Most of the members of this Forum, except a few fools like me, are very strongly anti-ADU.

I think adding an ADU is good for housing extended family, caregivers, or to use as home office. But not as rental for income - too much hassle.

So, are ADUs becoming more popular in Bay Area or a flop?

It’s certainly trending in More ADU direction. This only shows through 2019 though. The laws were greatly eased in 2020 and again in 2021 so I would expect the trend to grow.

As-to pro/anti- ADU folks here, there are so many ways to make money in this big beautiful state/country of ours. You can be wrong on a topic and right on something else and you still make good money. Stick with your niche and area of expertise and you can have a very nice business for yourself and family.

Pretty cool site to see permitted and constructed ADUs in your area.

ADU production

  • The number of ADU permits issued across California increased from almost almost 9,000 in 2018 to 12,392 in 2020. From 2018 to 2020, Californian jurisdictions permitted 33,881 ADUs and 22,695 ADUs were added to the state’s housing supply.

  • ADU production is generally occurring in diverse, transit-accessible neighborhoods where a greater share of homeowners have recently purchased their homes and still have a mortgage.

  • Homeowners with an ADU are much more affluent and less likely to identify as Hispanic or Latine than the typical Californian homeowner.

  • Although lower income and lower resource communities in Los Angeles County are constructing a large share of ADUs, a majority of ADU production takes place in areas with high home values and incomes, such as the San Francisco Bay Area.

ADU

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