San Diegans could soon buy and sell individual accessory dwelling units (ADUs), or backyard homes sometimes called “granny flats."
The city is in the process of updating its ADU regulations and one of the 25 proposed amendments would allow for ADUs to be bought and sold as individual homes like condos.
“It would be similar to a condo mapping of a multi-unit property now, where you can own one of the units,” said Whitney Hill, head of business development and innovation at SnapADU.
ADUs are usually built in single-family zoned neighborhoods where apartments are illegal.
Thousands of ADUs have been permitted in San Diego in the past few years, but they were all rental properties.
The City Council requested updates to the ADU regulations earlier this year, asking to scale back the city’s bonus program that allows extra ADUs if the project includes affordable housing.
The majority of the ADUs permitted in the past few years haven’t used the bonus program. The city’s recent presentation at a Land Use and Housing Committee meeting said 5,720 ADUs have been permitted between 2021 and 2024. Only 875 of those have been part of bonus program developments, including just 368 affordable homes.
But the Encanto neighborhood, with its extra large lots and proximity to transit, saw applications for several ADU developments of 10 or more units. The community pushed back, and the city agreed to update its ADU regulations.
One concern with ADUs has been the lack of home ownership opportunities. Previously, they were only allowed to be rented. Councilmember Henry Foster III, who represents Encanto, said the bonus program was “impacting for-sale opportunities” when asking the council for amendments.
That could change if the amendments are approved. They would allow all the market-rate ADUs moving forward to be sellable as individual homes — often for far less than the single-family homes they sit behind.
“I think what’s interesting about being able to sell ADUs, you’re accessing these standalone homes that you really wouldn’t be able to otherwise,” Hill said.
In San Diego County, the median price of a single-family home surpassed $1 million in the beginning of 2025. The city also has one of the lowest homeownership rates among people under 30 in the nation, according to Lending Tree.
But ADUs could offer a new, more affordable option.
In 2023 when the state law was passed, Rafael Perez, vice president of the Casita Coalition, told KPBS selling ADUs could help provide more “missing middle” housing in San Diego.
Selling ADUs is already allowed in other states, and Perez said this offers more affordable options for first-time buyers.
“Some of those units sell for 40 to 60% of what a single-family home sells for in that neighborhood," Perez said. "For people who are dreaming of homeownership and think it's out of reach, that may create some new, exciting inventory options down the road that are an alternative to just an apartment-style condo."
