San Diego County is seeing a surge in new housing—but not from large subdivisions or apartment towers. Instead, small backyard units known as Accessory Dwelling Units (ADUs) are driving the county’s housing expansion.
Big Impact from Small Homes
According to county data, ADUs now make up 30–45% of new housing permits in unincorporated areas. Over the past few years, these smaller homes have accounted for nearly half of all affordable housing built for low- and middle-income residents.
Why ADUs Are Taking Off
A combination of factors has fueled this boom:
Waived permit fees and streamlined approvals have made it easier for homeowners to build.
Slower large developments—often constrained by environmental and zoning regulations—have opened space for smaller projects.
State and local policies encourage ADUs as a flexible, fast way to expand housing options.
Questions About Affordability
However, the growth comes with challenges. Many ADUs counted as “affordable” are not deed-restricted, meaning owners aren’t required to keep rents within specific limits. Critics warn that the affordability impact may be overstated if rents rise beyond reach for many families.
Looking Ahead
County leaders see ADUs as a valuable tool to address California’s housing shortage, but not the only solution. As demand continues to grow, balancing flexibility, true affordability, and sustainable development will be key to ensuring ADUs remain part of a long-term housing strategy.