Berkeley city council voted unanimously last week to allow accessory dwelling units, or ADUs, to be sold as condos, under a new state bill.
By mid-2025, in-law units, converted garages, and other ADUs may be sold by their homeowners in the city of Berkeley.
Berkeley has become the first city in California to opt into state Assembly Bill 1033, which was passed last October. The bill establishes that local governments can allow homeowners to sell ADUs on their property as independent condos.
Berkeley city council argues this change will provide a path towards home ownership for first time buyers, in what’s increasingly become an unaffordable housing market.
According to the website Redfin, the median price for a home in Berkeley last month was $1.4M, and 78% of homes sold above the listing price. On average, homes in Berkeley sell within two weeks of their listing.
In an area with such high demand for housing, ADUs are likely to command a high price tag as well.
According to California’s housing department, Berkeley’s permitted the building of nearly 700 units since 2016. That was the year that the state passed legislation requiring cities to allow ADUs on most residential lots.
Now, work needs to be done to update city ordinances around ADUs. Issues like payment of trash services, utilities, and property tax will need to be addressed.
