Question: As a housing-concerned homeowner in San Diego, how can ADU’s be used to build generational wealth, and help with our local housing shortage?

Having consulted with builders, researchers, and housing advocates, it seems

there’s a unique opportunity beginning to flourish in San Diego, and it stands t

benefit both the public at-large, and local long-time homeowners, alike

As researchers, and housing-advocacy groups have been saying: Local housing

is a supply and demand problem, and when supply is limited, demand will drive

up pricing; there just isn’t enough housing for everyone who’s here. But as more

housing is available, the fierce competition for it will mellow, and so will prices

thereby helping renters at-large.

And for Mr. and Mrs. Home-owner? There’s much to gain from a backyard

revamp such as a two-unit build, in the form of a monthly cash-flow investment

and substantial property equity growth. At approximately $450,000 for a complete

two-unit build, new landlords can generate between $4,000-5,800 per month in

rent, more than covering the home-equity loan payment used to build the casitas,

of $3,200-3,500 per month, positioning homeowners with (tens of) thousands in

extra cash each year, and an increased home-value of $500-600,000, well more

than the cost to build. For a value-increase example, check out each month's Featured Properties in the Homefront Herald.