New ADU Laws and Regulations in California 2025

Understanding San Diego’s 2025 ADU Laws and New Opportunities


Have you ever dreamed of transforming your backyard into a source of extra income, a home for loved ones, or a creative space to call your own? The new ADU regulations in San Diego are opening doors like never before, making it easier than ever to turn those dreams into reality.

When I think about the homeowners I’ve worked with, I’m reminded of how often a simple idea like a rental unit, a home office, or a guest space becomes something much more significant. Imagine designing a private studio for remote work, building a stunning guest house for family gatherings, or creating a rental unit that generates passive income every month—all while boosting the value of your property. These are not just possibilities—they are opportunities waiting for you to seize.

In 2025, a wave of transformative changes in ADU laws took effect, offering San Diego homeowners like you the chance to create, expand, or legalize ADUs with fewer barriers than ever. Whether you’ve been holding off due to confusing regulations, parking requirements, or coastal restrictions, this guide will show you how to navigate these changes and turn your vision into a reality.

This isn’t just about property improvements—it’s about enriching your lifestyle, building financial security, and creating a space that truly works for you and your family. Ready to discover how these game-changing regulations can empower you? Let’s dive into the details and uncover your property’s incredible potential.

If you’re ready to bring your ADU vision to life, let’s make it happen together. Contact us today, and let’s explore how these new opportunities can transform your property into something extraordinary.

Prefer Listening? Here’s the Podcast Version:


Key Takeaways

  • Expanded ADU Opportunities: Multifamily properties can now build up to eight detached ADUs.
  • Easier Legalization: Unpermitted ADUs built before 2020 now have a clear path to approval.
  • Coastal Zone ADU Approval Streamlined: Local governments must simplify ADU permitting by 2026.
  • No Owner-Occupancy Restrictions: ADUs can now be freely rented, benefiting homeowners and investors alike.

These key takeaways highlight the exciting new opportunities now available to San Diego homeowners. Still, you may wonder what exactly changed and how it affects your ability to build or legalize an ADU. The new laws aren’t just minor tweaks; they represent a significant shift in how ADUs are regulated, making the process more accessible, flexible, and beneficial for property owners. Let’s break down the details of these game-changing regulations and what they mean for you.


What’s Changed with the New ADU Regulations?

The introduction of Senate Bill 12111, Assembly Bill 25332, and Senate Bill 10773 marks a transformative shift for ADU development in California. Here’s a breakdown:

Senate Bill 1211: Expanding Opportunities

📅 Effective Date: January 1, 2025

  • New Allowances: Multifamily properties can now have up to eight detached ADUs, provided the number of ADUs does not exceed the number of existing units on the lot. (Note: This does not apply to single-family homes.)
  • Impact: Encourages denser housing developments and provides more rental opportunities.

What This Means for You: With this new law in effect, multifamily property owners now have a tremendous opportunity to maximize their rental income. Adding multiple ADUs can create high-demand housing while significantly increasing your property’s long-term value. That is particularly beneficial in San Diego’s high-rent districts, where adding more rental units can be a game-changer for investors and landlords. If you’ve ever considered expanding your property portfolio, now is the time to take action.

Key Element Details Value to Homeowners
New Allowances Multifamily properties can build up to eight detached ADUs, but the total number of ADUs must not exceed existing units on the lot. Maximizes rental income potential and creates opportunities for landlords to expand property value.
Primary Beneficiaries Multi-property owners and investors in high-demand rental markets like North Park, Pacific Beach, and University Heights. Expands housing stock, encourages denser developments, and increases ROI for property owners.
Strategic Benefits Enables more efficient use of property and caters to high rental demand in urban areas. Provides flexibility for long-term investments and diversification of rental portfolios.

Assembly Bill 2533: Legalizing the Unpermitted

📅 Effective Date: January 1, 2025

  • Homeowners with unpermitted ADUs built before January 1, 2020, now have an easier path to legalization.
  • Local governments cannot deny permits solely due to building code violations unless the violation causes the unit to be classified as substandard under California Health and Safety Code Section 17920.34.

What This Means for You: This bill offers a real solution if you’ve been holding off on legalizing an unpermitted ADU due to fear of fines or excessive red tape. Bringing your unit up to code can increase your home’s value, open up rental opportunities, and provide legal peace of mind. The best part? You don’t have to go through this process alone—we can help you navigate inspections, compliance, and modifications to ensure your ADU is fully approved without unnecessary stress.

Aspect Description Value to Homeowners
Easier Legalization Unpermitted ADUs built before 2020 can now be legalized without automatic denial for minor building code violations. Increases property value, ensures compliance, and reduces risks for homeowners.
Cost Savings No impact fees or utility connection fees unless essential for safety reasons. Minimizes upfront costs for legalizing existing structures and improves ROI for rentals.
Inspection Support Homeowners can arrange confidential third-party inspections to assess their ADU before applying for legalization. Provides peace of mind and ensures compliance without penalties or fines.

Senate Bill 1077: Streamlining Coastal Zone ADUs

📅 Effective Date: January 1, 2025

  • Coastal Considerations: The California Coastal Commission must develop guidance by July 1, 2026, to help local governments simplify the permitting process for ADUs in the Coastal Zone. Homeowners should plan early to take advantage of the changes once they are implemented.
  • Deadline: Local governments must update permitting by July 1, 2026.
  • Enhanced Efficiency: Makes it easier for coastal property owners to add ADUs.

What This Means for You: For homeowners in La Jolla, Del Mar, and Pacific Beach, the long-standing ADU permitting headaches are finally easing. Before, delays, strict zoning rules, and costly requirements made building an ADU near the coast challenging. These new changes will make the approval process faster and more predictable. If you’ve been waiting to add an ADU to your coastal property, now is the time to start planning—getting ahead of the rush will ensure smoother approvals and faster project completion.

Key Element Details Value to Coastal Homeowners
Streamlined Process The California Coastal Commission will release guidance by 2026 to simplify permitting for ADUs in the Coastal Zone. Makes it faster and easier for coastal homeowners to build ADUs, reducing delays caused by zoning hurdles.
Long-Term Potential Opens up opportunities for short-term rental income and increased property value in high-demand areas like La Jolla and Del Mar. Unlocks additional income streams while enhancing property resale value in prime locations.
Deadline Awareness Local governments must update permitting processes by July 1, 2026. Encourages early planning to avoid rush and ensure a smoother approval process.

Our Take on the New ADU Regulations: Why This is a Game-Changer for San Diego Homeowners

As a leading remodeling and design firm in San Diego, we at Kaminskiy Design and Remodeling see these changes as a massive opportunity for homeowners. Whether you’re considering building an ADU for rental income, accommodating family, or increasing your property value, these new regulations remove previous barriers and unlock new potential.

How San Diego Homeowners Can Benefit

San Diego homeowners are uniquely positioned to take full advantage of these new regulations. Here’s how:

1. Turn Your Backyard into a Passive Income Stream

💡 With No Owner-Occupancy Requirements, You Can Rent Out ADUs Freely!

  • Before, some homeowners hesitated to build ADUs because they had to live on the property.
  • Now, you can rent out your primary home and ADUs, turning your property into a profitable asset.

💡 More ADUs = More Income

  • If you own a multifamily property, the ability to build up to eight detached ADUs means you can significantly increase rental revenue.
  • This is a smart move in high-demand rental areas like North Park, University Heights, and Pacific Beach.

Pro Tip: If you own a duplex or triplex, you might be able to quadruple your rental units!

Potential Rental Income from ADUs in San Diego Bar Chart

2. Legalize Your Unpermitted ADU—Easier Than Ever!

  • Many San Diego homeowners already have unpermitted ADUs, such as converted garages or backyard cottages.
  • Under the new laws, San Diego can’t deny permits solely based on minor code violations—as long as they don’t pose health or safety risks.
  • That means you can finally legalize and increase your home’s value without the stress of a denied permit.

Pro Tip: If you’re unsure about compliance, we can inspect your ADU and bring it up to code.

8 Steps to Legalize an Accessory Dwelling Unit (ADU) in San Diego, CA

3. Coastal Homeowners—Now’s Your Time to Build!

  • If you live in La Jolla, Del Mar, or Point Loma, the red tape for building an ADU has always been frustrating.
  • With streamlined approval processes, getting permits and starting construction is finally easier.
  • Great news for Airbnb investors or homeowners who want a luxury guest house!

Pro Tip: Start planning now to get ahead of the July 2026 deadline.

Average Permit Processing Duration in January 2025

Source: Permitting Center Dashboard | City of San Diego Official Website5


Creative Ideas for Your New ADU

Still wondering what to build? Here are great ideas to inspire you:

Luxury Guest House – Perfect for visiting family or an upscale Airbnb rental.

Home Office/Studio – Ideal for remote work or creative spaces.

Multigenerational Living – Give aging parents their own space while keeping them close.

Short-Term Rental Unit – An ADU can become a highly profitable vacation rental with San Diego’s tourism.

Affordable Housing for Adult Children – Give your kids independence without the cost of a separate home.


Need inspiration? We can design a custom ADU that fits your lifestyle and budget!

ADU Idea Description Who Benefits? Design Tips
Luxury Guest House A high-end living space for visiting family or an upscale Airbnb rental. Homeowners looking to host guests or generate income through premium short-term rentals. Incorporate modern features such as a kitchenette, spa-like bathroom, and outdoor seating area.
Home Office/Studio A private workspace ideal for remote work, creative projects, or a small business. Remote workers, entrepreneurs, and artists needing a focused environment. Use soundproofing materials and include large windows for natural light.
Multigenerational Living A separate space for aging parents or adult children to live independently but nearby. Families looking for a practical and supportive living arrangement. Ensure accessibility features such as wider doorways and step-free entries.
Short-Term Rental Unit An ADU designed for platforms like Airbnb, taking advantage of San Diego’s tourism. Property owners seeking high rental income from short-term stays. Highlight location-specific amenities, such as proximity to beaches or attractions.
Affordable Housing for Adult Children A cost-effective solution for adult children who need independence but not the expense of a separate home. Parents and children looking for affordable, family-friendly housing options. Include a compact, efficient design with shared utilities to keep costs low.

Key Considerations for San Diego Homeowners

  • Parking & Setbacks: Parking is not required outside the Coastal Overlay Zone, except in the Beach Impact Area of the Parking Impact Overlay Zone, where one off-street parking space may be required unless specific exemptions apply (such as small ADUs under 500 sq. ft.).
  • Owner-Occupancy No Longer Required: Thanks to AB 976, ADUs can now be freely rented out.

Checklist for Your ADU Project:

✅ Assess the potential of your property.

✅ Check zoning and permitting requirements.

✅ Consult with professionals for design and construction.

✅ Explore financing options.

✅ Plan for ongoing maintenance and management.


Pro Tip: Before starting your ADU project, research zoning regulations specific to your neighborhood, especially in areas with overlay zones or unique restrictions. Consulting with a local ADU expert, such as Kaminskiy Design and Remodeling, can save time and help you avoid costly mistakes. Planning ahead for financing and maintenance will ensure your project’s long-term success!

Key Consideration Description Benefit to Homeowners Action Steps
Parking & Setbacks Parking is not required outside the Coastal Overlay Zone. In the Beach Impact Area of the Parking Impact Overlay Zone, one off-street parking space may be required unless specific exemptions apply (e.g., small ADUs under 500 sq. ft.). Reduces barriers for homeowners to build ADUs by eliminating or minimizing parking requirements in most areas. Check whether your property falls within a Parking Impact Zone and determine if exemptions apply to your ADU project.
Owner-Occupancy AB 976 removes the requirement for property owners to live on-site, allowing ADUs to be freely rented out. Increases flexibility for investors and homeowners who wish to use ADUs as long-term or short-term rental income sources. Consider using ADUs for Airbnb or other rental platforms to maximize income potential.
Assess Property Potential Evaluate your lot size, zoning, and utility connections to determine feasibility for an ADU. Understanding your property’s potential ensures you make informed decisions and avoid unexpected costs or delays. Consult with a design professional or contractor for a feasibility study and site assessment.
Explore Financing Options Funding your ADU can involve home equity loans, ADU-specific financing, or government incentives. Affordable financing helps you leverage your ADU project for future rental income or increased property value. Research loan products tailored for ADU construction and consult with your financial advisor for the best option.
Plan for Maintenance Ensure your ADU is designed with durable materials and plan for ongoing maintenance and management. Low-maintenance designs reduce future costs and ensure your ADU remains a valuable asset. Work with a trusted contractor to choose long-lasting materials and set a maintenance schedule.

Final Thoughts: Why You Should Act Now

The opportunities to transform your property with an ADU have never been better. The new 2025 regulations have removed barriers and unlocked incredible potential for San Diego homeowners. Whether you envision a steady rental income, a welcoming guest house, or a multigenerational living solution, these changes make bringing those ideas to life easier than ever.

But here’s the thing—timing is everything. Every day, more homeowners are taking advantage of these opportunities to add value, flexibility, and income to their properties. Acting now ensures you stay ahead of the curve, especially in high-demand areas like coastal zones or multifamily properties.

I believe this is more than just a chance to improve your property; it’s an opportunity to enhance your lifestyle and financial security. At Kaminskiy Design and Remodeling, we’re ready to guide you through every step of the process. Whether it’s navigating permits, designing a custom space, or turning your vision into reality, we’ll be with you from start to finish.

If you’re ready to get started, let’s talk. Together, we can turn your property’s potential into something extraordinary. Your dream ADU is closer than you think. Reach out today, and let’s make it happen!

Schedule Your Design Consultation


Frequently Asked Questions

What are the main benefits of building an ADU? 

Accessory Dwelling Units (ADUs) provide a flexible way to add value to your property. They offer additional living space for family members, generate passive rental income, and significantly increase your property’s market value.

ADUs are also an excellent solution for multigenerational living or creating a private guest suite. With San Diego’s high demand for housing, building an ADU can also help ease local housing shortages.

How do I start the process of building an ADU?

Begin by evaluating your property’s potential. To determine feasibility, check your lot size, zoning restrictions, and available utilities. Research San Diego’s local ADU regulations, especially for multifamily and coastal properties.

Once you have the groundwork, consult with experienced professionals to design, plan, and construct your ADU. A feasibility study is a significant first step to avoid surprises down the road.

Are there any financing options available for ADUs?

Yes, several financing options are available. You can explore home equity loans, cash-out refinancing, or ADU-specific construction loans.

Government incentives or grant programs may sometimes be available, especially for creating affordable housing. Working with a financial advisor or lender familiar with ADUs can help you choose the best option for your situation.

What are the new ADU regulations in San Diego?

The 2025 regulations expand opportunities for ADU development. Multifamily properties can now have up to eight detached ADUs, unpermitted ADUs built before 2020 have a streamlined path to legalization, and coastal properties benefit from faster permitting processes.

Additionally, the removal of owner-occupancy requirements makes ADUs more attractive for investors and property owners seeking rental income.

How long does it take to build an ADU?

The timeline for building an ADU depends on the complexity of your project and the permitting process. On average, it can take 9-12 months.

Factors like design complexity, utility connections, and local zoning requirements can affect the timeline. Streamlined permitting processes in San Diego’s coastal zones may reduce delays for eligible properties.

What are the common challenges in building an ADU?

Building an ADU involves navigating zoning and permitting requirements, managing construction costs, and finding the right contractors. Utility hookups, parking regulations, and compliance with local laws can also add complexity.

However, partnering with Kaminskiy Design and Remodeling can simplify the process and ensure your project stays on track and within budget.


Resources:

  1. Bill Text – SB-1211 Land use: accessory dwelling units: ministerial approval. ↩︎
  2. Bill Text – AB-2533 Accessory dwelling units: junior accessory dwelling units: unpermitted developments. ↩︎
  3. Bill Text – SB-1077 Coastal resources: local coastal program: amendments: accessory and junior accessory dwelling units. ↩︎
  4. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=17920.3&lawCode=HSC ↩︎
  5. https://www.sandiego.gov/development-services/permits-inspections/dashboard ↩︎


Posted In - ADU Builder, Home Remodel on Jan 31, 2025