San Jose Spotlight: San Jose ADU law brings back starter homes

With San Jose recently becoming the first California city to allow the sale of accessory dwelling units (ADUs) as condos, affordable housing advocates say it increases the supply of living spaces for residents once priced out.

The state long restricted the sale of ADUs, also known as granny flats and backyard homes, as separate residences until Gov. Gavin Newsom signed Assembly Bill 1033 last year — allowing cities to break away from the prohibition. With more than 1,400 new ADUs built since 2019 and thousands more in development across San Jose, city leaders hope to alleviate the affordable housing crisis with the help of existing homeowners.

Casita Board Chair, Rafael Perez, weights in about ADUs as condos to increase home ownership gained traction in cities such as Austin, Texas and Seattle, Washington.