Granny Flats | The New California Law & Why Building One Adds Great Value
It should come to no surprise to hear that California is in a housing crisis. There is a severe shortage of homes, costs to buy homes are unaffordable, rental prices are skyrocketing, and there's been a disproportionate amount of people moving into California than moving out. Because of all of this, the government has been introducing bills & passing lawsto ease the crisis. One of the new laws is encouraging homeowners to utilize ADUs – accessory dwelling units, more commonly referred to as granny flats.
In California, it is very common to come across a home with an un-permitted addition or separate structure, such as a granny flat. There are numerous risks associated with these un-permitted additions, i.e. owing back taxes or the city giving you notice to demo the structure. However, a new law went into effect January 1st, 2019 that is giving homeowners with these un-permitted ADUs a chance to bring these units into compliance. In 2018, updated legislation improved current regulations on ADUs, easing up certain restrictions.
How do granny flats help the housing crisis?
They are an affordable option to adding housing to already existing lots.
They maximize the housing density in single-family zoned neighborhoods.
They encourage larger/ extended families to live together, while still allowing for desired independence.
How do granny flats add value to your home?
They are a relatively cheap way to attract buyers and command higher price-points.
They are still not incredibly common, so your home will stand out among all your competition.
With the high median home price in California, buyers are less likely to afford a down payment on their own. Adding a granny flat to your home would attract a larger buyer pool to include people who are looking to purchase with extended family/ friends.
Another way buyers are affording homes is to use part of their home as a rental. A granny flat will not only attract buyers looking for this, but it will command higher rent prices than simply renting out a room in the main house.