Granny Flats Help Alleviate California’s Housing Shortage

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March 13, 2017

It’s tough to live in California. The median home value is $490,000, and homeownership is at a 70-year low. Only 80,000 houses are built in the state each year, 100,000 units less than what’s needed to keep up with population growth.

Business Insider reports that thousands of homeowners are converting portions of their property into granny flats and renting them out. Local governments, however, have a list of rules and regulations that hinders construction of the dwellings​, so owners ​are​ o​p​erat​ing​ them illegally. Policies are beginning to change, as lawmakers see the benefits of Accessory Dwelling Units.

ADUs are feasible for 5% to 10% of the 500,000 single-family lots in Los Angeles, enough to make a dent in Mayor Eric Garcetti's goal for 100,000 new housing units by 2021. While ADUs may be a solution for boosting housing supply in the long term, it's not a quick fix.

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