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California’s first sale adu built in San Jose. Will it start the housing revolution?

A year after San Jose became the first California city to adopt the law, the city announced the completion of its first ADU Condominium.

The apartment is located near downtown San Jose and is expected to be the first ADU in California to be sold separately from the property’s main home, according to a press release released Thursday by the City of San Jose.

“ADUs can be affordable by design and increasing popularity across the state, and now they can also offer the easiest form of home ownership,” Mayor Matt Mahan said in a statement, adding that he hopes other California cities will follow the leadership of San Jose.

In California’s Adu Boom, San Jose has seen twice as many as its building permits in the past five years, the city statement said.

According to city data, of the approximately 1,500 ADUs have been allowed in San Jose in the approximately 1,900 applications submitted to the city since 2022. A total of 1,100 final building permits have been issued. The city has a population of less than 1 million residents.

“We are honored to lead the country in this effort and, most importantly, provide more housing opportunities for our communities,” City Manager Jennifer Maguire said in a statement.

Officials who have explored sales ideas in other cities say they can be a new generation of entry-level homes, and the cost of full-size homes is only a fraction of the cost.

While any housing growth helps solve the state’s housing crisis, experts are unsure whether ADU construction creates dents in California’s housing shortages.

Adus accounts for one-fifth of housing growth in the state in 2024. The attachment units have grown steadily, even if the overall housing growth has stabilized year by year.

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