Unpermitted ADU surge

[Reese Shulman]

The San Francisco Bay Area housing shortage has prompted a lot of homeowners and investors to add Accessory Dwelling Units (ADUs) to their properties. A Stanford study revealed that over 75% of the ADUs built in San Jose between 2016 and 2020 did not have a permit and are therefore illegal housing units.

The lengthy permitting process, high construction costs, and shortage of tradespeople are some of the factors motivating property owners and contractors to take on the risk of building, renting to tenants, and/or housing family & friends in an illegal unit.