A year after San José became the first California city to adopt laws allowing accessory dwelling units to be sold separately from the homes they abut, the city announced the completion of its first ADU condominium.
The condominium, located near downtown San José, is expected to be the first ADU in California that can be sold separately from the property’s main house, according to a press release issued Thursday by the city of San José.
“ADUs are affordable by design and growing in popularity across the state, and now they can offer the most accessible form of home ownership, too,” Mayor Matt Mahan said in a statement. He added that he hoped other California cities would follow San José‘s lead.
Amid California’s ADU boom, San José has seen its construction permits double in the last five years, the city statement said.
Of about 1,900 applications filed with the city, 1,500 ADUs have been permitted in San José since 2022, according to city data. A total of 1,100 final building permits have been issued. The city has a population just under 1 million residents.
“We are honored to lead the state in this effort and, most importantly, serve our community with more housing opportunities,” City Manager Jennifer Maguire said in a statement.
Officials in other cities that have explored the idea of for-sale ADUs say they can become a new generation of starter homes for a fraction of the cost of a full-sized house on a full-sized lot.
Though any housing growth helps address the state’s housing crisis, experts are unsure whether ADU construction is making a dent in California’s housing shortage.
ADUs accounted for around one-fifth of statewide housing growth in 2024. The accessory units have seen steady growth even as overall housing growth has been flat year over year.
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