Common Misconceptions About ADUs: What California Homeowners Need to Know

With the rise of Accessory Dwelling Units (ADUs) across California, there's also been a rise in confusion. From zoning myths to financial fears, homeowners often hesitate to explore ADUs due to misinformation.


In this guide, we’re breaking down the most common misconceptions about ADUs—so you can confidently make informed decisions and possibly unlock one of the best property investments available today.

ADU
An Accessory Dwelling Unit (ADU) is a self-contained living space located on the same lot as a primary residence. ADUs can be:
- Detached (a standalone structure, like a tiny house or backyard cottage)
- Attached (connected to the main house, such as a room addition)
- Converted (repurposed existing spaces like garages or basements)
They go by many names: granny flats, in-law units, casitas, or backyard homes. ADUs must include a kitchen, bathroom, living area, and private entrance to be considered a legal unit.

🧠 Top 8 Common Misconceptions About ADUs

1. ❌ “ADUs Are Only for the Wealthy”

Truth: While construction can be costly, California offers various financing options, including home equity loans and government incentives. Plus, rental income from your ADU can offset or even exceed building costs over time.

    2. ❌ “I Don’t Have Enough Space for an ADU”

    Truth: State law allows ADUs on most residential lots—even small ones. Detached ADUs can be as small as 150–400 sq ft, and Junior ADUs (JADUs) can be created within the existing home or garage space.

    3. ❌ “ADUs Decrease Property Value”

    Truth: Quite the opposite. A permitted ADU can increase your home’s value by 20–30% depending on location and build quality. They’re a hot commodity for buyers looking for flexible housing options or rental income potential.

    4. ❌ “ADUs Are Illegal or Difficult to Permit”

    Truth: California has passed multiple pro-ADU laws (like Senate Bill 9 and AB 68) that require cities to streamline and approve ADUs ministerially—meaning no lengthy public hearings or special reviews if requirements are met.

    5. ❌ “ADUs Are Just for Renting Out”

    Truth: ADUs serve many purposes:

    • Housing for elderly parents or adult children

    • Home offices or studios

    • Guest quarters

    • Caregiver housing

    6. ❌ “Neighbors Will Block My ADU Plans”

    Truth: State law overrides most local opposition. If your ADU project follows state and local guidelines, neighbors cannot prevent it.

    7. ❌ “ADUs Are Low Quality or Unsafe”

    Truth: Permitted ADUs must meet all California building codes, safety, plumbing, and energy efficiency standards—making them as safe and high-quality as any other home.

    8. ❌ “You Can Only Build One ADU”

    Truth: On single-family lots, you may be allowed to build one full ADU and one Junior ADU. On multi-family properties, up to two detached ADUs may be permitted.

    ✅ Benefits of Building a Permitted ADU in California

    🏠 Boost Property Value

    Well-designed ADUs increase your overall property value and attract more buyers if you sell.


    💰 Generate Rental Income

    Long-term rentals can bring in steady cash flow, especially in California’s high-demand housing market.


    👨‍👩‍👧 Support Multigenerational Living

    Keep loved ones close while still maintaining privacy and independence.


    🌎 Reduce Environmental Impact

    Compact living reduces energy usage, car dependence, and urban sprawl.


    ⚖ Stay Legally Protected

    Permitted ADUs offer legal peace of mind, especially when selling or refinancing.

    📝 The Permitting Process at a Glance

      1. Check Zoning Regulations
        Ensure your property meets local ADU criteria (most do under current state law).

      2. Design the Unit
        Work with a licensed architect or ADU specialist.

      3. Submit for Permit
        Most cities offer streamlined approval within 60 days.

      4. Build + Inspect
        Your contractor builds the unit, which is inspected by local officials.

      5. Get Occupancy Certificate
        Move in, rent it out, or use it however you like.

    FAQ

    Can I build an ADU on any residential property in California?

    Almost all single-family and multi-family lots are eligible, thanks to recent state legislation.

    How long does it take to get a permit?

    Most cities must respond within 60 days if your application complies with all rules.

    Is a Junior ADU the same as a full ADU?

    Not exactly. JADUs are smaller (max 500 sq ft) and often share a bathroom with the main home.

    Can I Airbnb my ADU?

    Short-term rental laws vary by city. Some restrict ADUs to long-term rentals (30+ days).

    What’s the average cost to build an ADU?

    Costs range from $80,000 to $300,000+ depending on size, location, and materials.