Latest Update: January 2025
Several major new ADU laws took effect at the start of 2025. California's SB 1211 now allows up to 8 detached ADUs on multifamily lots, and the new unpermitted ADU amnesty program is accepting applications.
Recent ADU Legislation
California SB 1211
New LawEffective January 2025. Allows up to 8 detached ADUs on multifamily lots (previously limited to 2). Major expansion for ADU development on apartment properties.
California AB 1033
New LawAllows cities to opt-in to permit separate sale of ADUs as condominiums. A potential game-changer for ADU financing and investment.
CA Unpermitted ADU Amnesty
AmnestyNew program effective January 2025 allows retroactive permits for unpermitted ADUs built before 2025. Brings thousands of units into compliance.
Washington HB 1337
EnactedRequires all Washington cities to allow at least 2 ADUs per single-family lot. Eliminates owner-occupancy and parking mandates statewide.
Industry Trends
ADU Market Growth
- ADU permits up 63% nationally since 2019
- Prefab ADU market growing 25%+ annually
- Average ADU rental income: $1,800/month nationally
- 38 states now have some form of ADU-enabling legislation
- ADU-specific lending products expanding rapidly
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