New law enables more units on multifamily properties, easing housing shortages statewide
California is allowing increased construction of accessory dwelling units (ADU), also called “granny flats” or “backyard homes”, on multifamily properties, which it sees as a scalable solution to housing shortages while addressing affordability challenges.
The state passed SB 1211, a landmark bill that updates and enhances current ADU regulations. The new legislation, authored by Senator Nancy Skinner and supported by housing advocacy groups like California YIMBY and the Casita Coalition, broadens the scope for ADU development.
Previously, multifamily properties were limited to constructing two detached ADUs, with additional units allowed only within existing structures, such as converted basements or garages.
SB 1211 changes the game, permitting up to eight detached ADUs on a single property, depending on the existing number of housing units. This opens up opportunities to transform underutilized spaces, like parking lots, vacant land, and open areas, into much-needed housing without displacing current residents.
“By legalizing ADUs across the state, the Legislature has enabled tens of thousands of Californians to benefit from more affordable housing,” said Brian Hanlon, CEO of California YIMBY.
The bill addresses California’s chronic housing shortage while offering a cost-effective way to increase density. It also gives property owners the chance to generate additional income by renting out ADUs, making it a win-win for communities and landlords alike.
ADUs have already proven their value in California, with more than 80,000 units built over the past seven years under streamlined policies. SB 1211 builds on that success, enabling even greater flexibility and scalability in housing development. By allowing property owners to maximize land use efficiently, the legislation supports sustainable urban growth while keeping neighborhoods intact.
Read next: 'Transactions are falling through': Insurance crisis tearing California's housing market apart
California’s bold approach could serve as a template for other regions facing similar housing shortages, advocates said. ADU-friendly policies offer a balanced solution: increasing housing supply without resorting to disruptive high-rise developments. The benefits include boosting affordable rental options, creating jobs in construction, and ensuring sustainable urban planning.
“California is setting the standard for how housing can be expanded thoughtfully and effectively,” Hanlon added.
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.
