Why Bay Area multifamily owners have embraced ADUs

Accessory dwelling units (ADUs) have evolved from being seen as simple additions to single-family homes to a significant part of California's housing market, especially since new laws took effect in 2020. By 2023, one in five new homes was an ADU. Recent legislation aims to streamline the approval process and increase the number of ADUs in multifamily properties. Companies like AvalonBay are capitalizing on these changes, converting underutilized spaces into revenue-generating units. The trend is gaining traction nationally, with advocacy groups promoting similar reforms elsewhere.

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