Sacramento’s Backyard Advantage
Have you ever heard the phrase, "Small but mighty?" This saying perfectly encapsulates the growing demand for Accessory Dwelling Units (ADUs) in the real estate market. Sacramento County is just starting its ADU journey compared to Los Angeles County, but the opportunity is massive. Bequall has identified over 50,000 sites that have enough buildable backyard space for a 400-square-foot detached ADU. And with just 237 completed units in 2022, there is a huge opportunity ahead.
Our belief that Sacramento was quickly turning into the nation's housing policy capital influenced our decision to start an ADU business there. With over 100 housing bills issued in the last few years, Sacramento is literally and figuratively setting standards that are also getting adopted across the country. We were attracted to the region's favorable business, political, and social landscape and the interest of all stakeholders in building more housing. Groups like the Greater Sacramento Economic Council are bringing in new companies and supporting existing business growth, while other groups are supporting a more vibrant social and community culture.
Sacramento: A Great Place for ADUs
The City of Sacramento and Sacramento County have taken progressive steps to simplify the permitting process and reduce fees associated with ADU construction. This ease of operation is a huge advantage for businesses like ours that are venturing into this market. Sacramento County has clarified ADU zoning standards and is committed to streamlining the process for permitting. They even have pre-reviewed ADU designs that will be available for homeowners.
Furthermore, Sacramento's climate, characterized by mild winters and hot, dry summers, is conducive to construction all year round, making it an ideal location for ADU building businesses. The accessibility of resources, skilled labor, and construction materials in Sacramento adds to the city's appeal as the ideal launchpad for an ADU venture.
The Demand for ADUs in Sacramento
Numerous factors have been driving up the demand for ADUs in Sacramento. The city has witnessed significant population growth over the past decade, creating a need for additional housing options. Additionally, the rising cost of living has made ADUs an attractive solution for residents seeking affordable housing options.
Data from the CA HCD shows the growing demand for ADUs in Sacramento. In 2016, the city issued around 25 permits for ADUs. By 2022, this number had skyrocketed to over 450, a staggering increase that indicates a significant market for ADUs.
Local Regulations Make Sacramento Ideal for ADUs
The progressive approach of the city and county to ADUs is reflected in their local regulations. Recognizing the potential of ADUs to alleviate housing shortages and provide affordable options, Sacramento has taken active measures to incentivize their construction.
In 2020, the city introduced several amendments to ADU regulations, including allowing multiple ADUs on a single-family lot, reducing parking requirements, and simplifying the approval process. These regulations have made it easier for homeowners to construct ADUs, creating a conducive environment for an ADU business.
Our Journey to Launching an ADU Business in Sacramento
Our journey to establish an ADU business in Sacramento has been exciting. We have seen positive feedback and support for our mission from the county to our neighbors. Our efforts are geared towards designing and building single-family studios that meet the unique needs of Sacramento's residents and contribute to the region's housing supply goals.
As we navigate this journey, our mission remains clear: to contribute to Sacramento's housing diversity, promote sustainable living, and meet the evolving needs of its residents.
While we continue to innovate and grow in Sacramento, we are excited about the potential of taking our ADU business to other cities and counties in California. We remain committed to offering high-quality, affordable housing solutions and contributing to the evolution of California's urban landscape. The story of ADUs in Sacramento is just the beginning; the best is yet to come.