Since 2016, California has enacted numerous pieces of legislation that pave the way for the construction of accessory dwelling units (ADUs). ADUs are also known as granny flats and in-law units, and they serve as a secondary housing unit on a parcel of land. The purpose of these laws is to stimulate the production of more housing, and particularly inexpensive housing.
Unfortunately, local jurisdictions still have discretion regarding whether to permit ADUs or not. And many municipalities have chosen to retain the land-use regulations that prohibit ADUs.
Despite this, permits for ADUs increased from about 6,000 in 2018 to nearly 16,000 in 2019. In 2018, ADUs accounted for 20 percent of the building permits filed in Los Angeles County. ADUs are playing an important role in addressing the state’s housing shortage and numerous construction companies are focusing on this niche market.
The rapid popularity of ADUs illustrates an important point: When they aren’t restricted by zoning and similar land-use regulations, property owners and entrepreneurs find creative ways to address the shortage of housing. The shortage of lower cost housing isn’t because builders and developers don’t want to build it. The shortage has been caused by government regulations that restrict what can be built and add outrageous permitting fees to the cost.
California legislators clearly recognize the detrimental impact that regulations have on the production of housing. Indeed, in May the governor signed a bill that streamlines the paperwork required to meet the state’s environmental protection laws. It is estimated that the new law will reduce the cost of compliance by 85 percent.
California has long been hostile to property owners. The state’s land-use and environmental regulations are among the most severe in the nation. Those regulations have caused the cost of living to skyrocket, and millions have fled the state.
While it is too soon to tell whether loosening the state’s constricting regulations is permanent or simply a passing fad, it is a step in the right direction. Maybe there is some hope for California.