What’s an ADU?

Accessory dwelling units, or ADUs, are defined as a secondary residential living space located on the same lot of a single-family home. As of February 2nd, 2025, ADUs are able to be created on any single family property in the state by right, meaning homeowners no longer need to apply for special permits or meet rigorous municipal criteria to benefit from an income producing additional unit. As long as the unit meets the state building code, municipalities are not allowed to impose unreasonable restrictions on the creation of ADUs, opening up an incredible opportunity for future or current homeowners. This law can be transformational for housing affordability. For first-time buyers, ADUs can help them qualify for a house or offset a mortgage payment. For existing homeowners, ADUs allow them to generate some much needed additional income. It also presents an opportunity for investors, since ADU conversions do not need to be owner occupied, so you can essentially turn a single family into a two unit property. On the renter side of the equation, this is going to open up a lot of affordable units that didn’t exist before, which the state desperately needs. It truly is a win-win situation and the team at Peak is ready to help you in your ADU journey!