Assembly Bill 1033 permits homeowners to sell Accessory Dwelling Units (ADUs) as separate condominiums. San José became the first city to enact this law, with developments underway including one condo conversion set for certification. Industry professionals acknowledge cautious enthusiasm around the ADU condo model, suggesting it could enhance homeownership rates. Meanwhile, Seattle has experienced significant success in selling ADUs as condos, demonstrating strong consumer demand for more affordable housing solutions despite slower adoption in Californian cities such as Santa Monica and Santa Cruz.
ADUs weren't moving the needle on homeownership as much as we would like. ADU condos open up that door of possibility.
At the end of the day, it's just providing more housing. It's one possible solution to help create more housing.
In Seattle, about 60% of all ADUs were sold as condos in 2024. Those figures may be even higher this year because the share of ADU condos has been rising.
San José was the first city to implement the 2024 law, and it is poised to approve the first conversion of an accessory dwelling unit into a condominium.
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