Accessory Dwelling Units Exploding Across Sacramento

The housing crisis in Sacramento County is taking a new turn with the sharp increase in permits for accessory dwelling units (ADUs). These units are essentially tiny homes that can be placed in your backyard and serve as an affordable housing option. The number of ADU permits in Sacramento County nearly tripled from 2021 to 2022 from 59 permits to 171 permits, making it a hot topic for real estate investors. Per Colton Paulhus, who started Anchored Tiny Homes:

We were able to permit this home in 30 days, which is incredible when you think about the opportunity for multifamily that can be 12 to 24 months.

These ADUs in Sacramento County are a potential solution to the housing crisis. Companies like Anchored Tiny Homes and Bequall see this as an opportunity to provide thousands of new housing options.

Two bills are on the California governor’s desk that could further boost ADU construction. The focus is on affordability and speed of construction, with permits being approved in as little as 30 days. Sacramento is estimated to have 450,000 single home parcels and 50,000 potential locations for ADUs. The affordability of some of the single-family homes nowadays is just pricing people out of the market.

The sharp increase in ADU permits is a clear indicator of the growing demand for affordable housing. This trend is not just a fad; it’s a response to the housing crisis, offering real estate investors a new avenue for investment.

The speed of permit approval is another key point. Faster permits mean less lower opportunity costs and more predictability for expenses.

ADUs are growing in popularity everywhere, not just in Sacramento. It reflects broader housing trends in California and the United States. With the housing crisis reaching a boiling point, alternative solutions like ADUs are no longer just an option; they’re a necessity.

As shown in Sacramento County, ADUs are a viable solution to the housing crisis, offering a quicker permit process and a wide range of opportunities for real estate investors.

Visit our comprehensive guide on ADUs here to take advantage of the new ADU trend.