The opportunity sitting right in your backyard.
Ready for the next gold rush?
It’s coming, but this time it’s going to be a land rush, thanks to a new law about accessory dwelling units.
The Law that Changes the Land (literally)
In January 2017, The State of California passed a law that makes getting an accessory dwelling unit a much easier process. It’s now faster and has far less restriction.s
So what does this mean?
Already valuable land is now even more valuable.
The new law (SB 1069 for the curious) requires local agencies to issue approvals or dismissals of accessory dwelling unit (ADU) permits within 120 days of application submission.This new time frame allows for faster, cheaper and hassle-free permitting.
Other states have had laws on the books like this for years, but this innovation in land-starved California means a massive change in how people are able to use their own land.
ADU’s aren’t anything new – they’ve been called granny-flats, granny-pods, in-law flats, even carriage houses. But often it’s the legislation that makes ADUs difficult. And now that that’s changed, we’re excited to see what’s next.
So what does this new law (and ADUs in general) mean for the average homeowner?
It means a faster decision process and reduced restrictions about how homeowners can use their own land, giving homeowners far more options than before. And options = value.
This new law creates opportunities for supplementing income, and perhaps even begin to resolve the housing crisis by adding more supply in areas where inventory is low.
Studies show that the cost of living, is rising drastically. And housing cost is the biggest chunk of the cost of living. Take the Bay Area, for example:
Eighty three percent of renters in the Bay Area are ready to leave because they can no longer afford rent, let alone a down payment on a house in a high cash market. And many current homeowners can no longer afford their own homes.
Some homeowners are turning to accessory dwelling units to change that, generating income they wouldn’t other wise have.
And Kasita is here to make that solution beautiful, smart, and affordable.
So how are people using accessory dwelling units?
For some, as a source of secondary income, as backyard rentals.
In markets such as Portland and Oakland families are turning to ‘granny pods’ to help parents and grandparents live independently while remaining part of the home. Compare the annual cost of nursing care (which can run up to $100,000/year!) with the cost of ADUs (one time price ranging from $100,000 to $250,000).
Most people are pick ADUs as a home for extended family members for their comfort, affordability, and closeness to the main home.
A New Kind of Home
Kasita is part of an emerging class of companies addressing those problems holistically.
Together, we’re aiming to create a new kind of home that will solve some of the bigger issues around housing, and help homeowners mine some of the value that’s sitting right in their backyard.