
Accessory dwelling units (ADUs) are becoming increasingly popular as California homeowners look for creative ways to enhance their property value or attract buyers. No matter your real estate goals, understanding the impact of ADU housing in San Diego can help you reach them.
What Are ADUs?
Accessory dwelling units, often referred to as granny flats or in-law suites, are secondary housing units built on the property of the primary residence. They can be either:
- Attached to the home
- A standalone structure
- Located within the home itself, such as a converted garage
Designed to be fully contained living units, ADUs feature kitchens and bathrooms.
The Market Demand for ADUs
ADU San Diego builders have been busy! Limited housing options and increasing demand mean ADUs help fill a critical gap. Many homeowners are choosing to have ADUs built on their property to not only create more room for their family but to open up rental opportunities and increase value, should the time ever come to sell.
Many buyers see the value of a property with an existing ADU or one that has the space and potential for an accessory dwelling unit to be constructed.
The Benefits of Adding an ADU to Your Property
Rental Income Potential
It’s easy to see why ADU construction in San Diego is up, considering the rental income potential they provide. Homeowners can rent out their units for quick stays or even long-term tenants. This added, steady source of additional income can help offset upcoming renovation expenses, mortgage payments, or simply provide more financial security.
Increased Square Footage
An ADU can directly contribute to your home’s overall market value. How? By expanding the livable space on your property. Buyers are often willing to pay a premium for houses with more square footage, especially when said space includes a fully functional, private living area.
More Housing Options
With more and more people moving into the area, San Diego has a housing shortage on its hands. Accessory dwelling units are seen as part of the solution. Whether used for out-of-town guests, renters, or multigenerational living, ADUs can provide affordable housing options.
Making Use of Initiatives
San Diego has made it easier than ever for homeowners to add an ADU on their property. To encourage construction, there are now:
- Streamlined permit processes
- Reduced fees
- Special initiatives
All of which help make an ADU both achievable and worthwhile.
Attract Buyers
Accessory dwelling units are functional and versatile, offering another way to make your home not only stand out in the market but command top-dollar. If you’re thinking about selling your home, team up with our Compass Concierge professionals who can prepare your property in a way that showcases an existing ADU or the potential for the buyer to add one. Such possibilities can help maximize your home’s appeal to potential buyers.
Explore the Power of the ADU
ADUs are far more than a trendy addition; they’re a practical solution to some of San Diego’s most pressing housing challenges. Plus, they have the added benefit of increasing your property value! If you’re thinking about selling or buying a home with an ADU, knowing the value of such an addition can help you make informed decisions.
Connect with our Selby team today to learn more about accessory dwelling units and how they could help you achieve your real estate goals!

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