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Building Your Dreams with All World Construction LLC - Additional Dwelling Unit Fact Page
Addressing California's Housing Crisis with Legislative Solutions and Opportunities
California's housing market, particularly in major cities like San Diego and Los Angeles, faces significant challenges characterized by limited inventory, affordability issues, and rising rents. However, recent legislative measures such as Assembly Bill 68 & 434 (AB 68 & AB 434), Assembly Bill 1033 (AB 1033), and Senate Bill 9 (SB 9) are designed to tackle these issues and create new opportunities for homeowners, buyers, and the broader real estate market.
California’s Housing Challenge
Inventory Shortage
Statistical Insight: As of 2023, San Diego and Los Angeles are facing a combined shortage of over 500,000 housing units (California Housing Partnership).
Impact: Limited housing inventory drives up property prices, making homeownership increasingly unattainable.
Affordability Crisis
Statistical Insight: The median home price in San Diego is approximately $900,000, and in Los Angeles, it’s around $850,000, far above the national average (Zillow, 2023).
Impact: High prices limit access to housing, particularly for first-time buyers and low-income families.
Rising Rents
Statistical Insight: Average rent in San Diego has increased by 36% and in Los Angeles by 30% over the past decade (Apartment List, 2023).
AB 68: Allows homeowners to add two additional units (an ADU and a JADU) on residential lots, promoting the development of triplexes.
AB 434: Mandates that cities have pre-approved ADU plans by 2025, streamlining the approval process and reducing bureaucratic delays.
Assembly Bill 1033 (AB 1033)
AB 1033: Permits the separate sale of ADUs from the primary residence, allowing for individual ownership of ADUs and primary homes, which can stimulate the housing market.
Senate Bill 9 (SB 9)
SB 9: Facilitates the conversion of single-family homes into duplexes and allows for lot splits, significantly increasing the potential housing stock in urban areas.
Opportunities Created
Increased Housing Supply
Impact: Legislative measures are expected to significantly boost housing inventory, helping to meet demand and stabilize prices.
Statistical Insight: The potential for an additional 1.5 million housing units statewide, with a significant portion in San Diego and Los Angeles (California Department of Housing and Community Development, 2023).
Increased Affordability and Qualification
Impact: More housing units lead to more affordable options, improving access for low-to-moderate income families.
Additional Income for Homeowners
Impact: Homeowners can generate rental income from ADUs, improving financial stability and offsetting mortgage costs.
Statistical Insight: Homeowners in San Diego and Los Angeles can see rental income increases of up to $2,500 per month from ADUs (RentCafe, 2023).
Multi-generational Living
Impact: ADUs provide flexible living arrangements for extended families, enhancing family support and reducing living expenses.
Increased Property Value
Impact: Properties with additional units often see higher market values, benefiting homeowners' equity.
Statistical Insight: Properties with ADUs in Los
Angeles and San Diego can see an increase in value by 20-30% (Redfin, 2023).
Who Benefits?
Homeowners
Gain additional income, improved property value, and flexible living arrangements.
Homebuyers
More housing options at potentially lower prices, improving access to homeownership.
Realtors
Expanded inventory and new market opportunities drive business growth.
Contractors
Increased demand for construction and renovation services.
Lenders
New financing opportunities through HELOCs, cash-out refinances, construction loans, and home improvement loans.
Legislative Details
AB 68 & 434
Single Family Homes:
One ADU (up to 1,200 sq. ft.) and one JADU (up to 500 sq. ft.) per lot.
One detached ADU up to 1,200 sq. ft. on the same footprint as an existing structure.
Multifamily Dwellings:
Multiple ADUs within existing structures.
Two detached ADUs on a multifamily lot.
AB 434:
Requires cities to have pre-approved ADU plans by 2025, simplifying the approval process.
AB 1033:
Separate Sale of ADUs:
Allows ADUs to be sold separately from the primary residence, potentially increasing property sales and ownership opportunities.
SB 9:
Duplexes and Lot Splits:
Permits conversion of homes into duplexes and lot splits with ministerial approval.
Projects must meet specific criteria, including urbanized area designation, parking requirements, and local short-term rental regulations.
Financing Options
HELOCs, Cash-Out Refinance, Construction Loans, Home Improvement Loans
Note: Financing agencies typically allow only one ADU per property despite state allowances for two.
Conclusion
California's legislative efforts are paving the way for significant changes in the housing market, particularly in cities like San Diego and Los Angeles. By increasing the housing supply, improving affordability, and creating new income opportunities, these measures promise to address some of the state's most pressing housing challenges. As more homeowners and developers embrace these opportunities, the real estate landscape in these cities will continue to evolve, offering hope for a more sustainable and accessible housing future.
These statistics and insights underscore the pressing need for ADUs and other legislative measures to address the housing crisis in California's major cities, offering a multi-faceted approach to urban living and economic stability.
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Things to know about the process of Building and ADU
Additional Dwelling Units in San Diego California
Ahoy, San Diego dwellers and dreamers of extra space! Let’s navigate the seas of adding an Additional Dwelling Unit (ADU) to your homestead. 🏡✨
Seeking eligible zip codes for an ADU extravaganza?
Fancy a deep dive into the City/state ADU code treasure trove?
Timeframe for ADU Magic to Happen:
We begin with a Sherlock-Holmes-level inspection, concocting designs that fit your land like a glove. Roughly a month, we sketch dreams onto paper.
Plans then waltz through the city's hallowed halls for approval.
Cost of Your ADU Adventure:
Fancy a free stroll and chit-chat estimate? We've got you.
Costs swing from $40,000 to a swanky $850,000, potentially boosting your estate's value like a charm spell – more gold in your pocket, really. (Tip: Chat with your gold-counter... erm, financial advisor, for the juicy details.)
The Rulebook of ADU Creation:
Fence line blues? Pshaw! Build from 0'-4' away and make every inch count.
Craving altitude? Shoot up 24'-35' high – sky's almost the limit!
Play nice with size: Your ADU shouldn't overshadow your main castle – keep it to half the size.
The Red Tape Waltz:
City and state maestros conduct the building symphony – occasionally, they improvise new notes.
Beware the "CDP" – a shapeshifter of a permit.
Builders are swift; bureaucracy, not so much. Cushion your timeline with a 1-3 month safety net.
The Countdown to Construction:
Site review, customer pow-wows, and design doodling – 30 days.
Plan parades and permit pilgrimages – add 60-100 days of paperwork tango.
With permits in hand, we'll hammer and hustle – 16-28 weeks to your ADU kingdom!
Ready your quill and ink your dreams – your ADU quest awaits! 🛠️💫
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