How California’s ADU law transforms multifamily real estate

California is leading the way in housing innovation with the recent passage of SB 1211, a landmark bill that updates and enhances current accessory dwelling unit (ADU) regulations. Authored by Senator Nancy Skinner and backed by housing advocates such as California YIMBY and the Casita Coalition, this new legislation promises to reshape the way multifamily properties can increase their ADU potential, creating a blueprint that other states and countries should consider adopting as well.

What does SB 1211 do?

ADUs, commonly known as “granny flats” or “backyard homes,” are already prevalent as an effective solution for increasing California’s affordable housing. Over the past 7 years, California homeowners have constructed more than 80,000 ADUs under supportive policies that legalized and streamlined their development. SB 1211 moves the needle further, with greater flexibility for multifamily properties that have been constrained by prior regulations.

Under previous laws, multifamily properties could build as many as two detached ADUs. Additional units were only allowed if they were built within the home’s existing footprint, such as in a basement or a converted garage. This limited the ADU growth potential on many properties that had available space due to the caps. But SB 1211 opens the path to substantial new growth by allowing as many as eight detached ADUs per property, depending on the existing number of housing units on the site. For communities and property owners, the shift enables better use of underutilized spaces such as parking lots, vacant land, and open areas, paving the way for more housing opportunities without displacing current residents.

Address the housing crisis through pragmatic solutions

Brian Hanlon, CEO of pro-housing organization California YIMBY applauded SB 1211, noting on its website, “By legalizing ADUs across the state, the Legislature has enabled tens of thousands of Californians to benefit from more affordable housing.”

Everybody wins, as the shift is a significant step in addressing California’s housing shortage while promoting affordable options for residents. By removing prior barriers, SB 1211 empowers property owners to make more efficient use of their land, boosts the availability of affordable housing, and creates new revenue opportunities.

The benefits of replicating California’s approach to ADUs are clear. ADUs are a scalable solution to higher housing density without altering neighborhood character. It also contributes to economic growth through rental income opportunities for owners. The approach ensures that land is used efficiently and affordably, while offering a practical means to address housing deficits, with a goal of balancing increased housing supply with sustainable urban development and equitable community growth.

A path forward

As housing shortages persist globally, solutions such as California’s SB 1211 can serve as a model for effective reform. By embracing flexible and ADU-friendly policies, regions can better meet the demands of modern housing markets while also answering the desire for more inclusive, affordable and aesthetically beautiful spaces. In this instance, California’s example shows that with thoughtful legislation and visionary leadership, progress is not only possible—it’s achievable for the benefit of all.

Gene Eidelman and Ross Maguire are the cofounders of Azure Printed Homes.