Though this has been creating a buzz in the Real Estate universe, it has gotten little notice in the press or general population though it fundamentally changes all California neighborhoods. ADU stands for Accessory Dwelling Unit and is the term used in AB 2299, a bill passed in 2016 by the California Legislature and signed by the governor. ADUs are second dwelling units on a lot meant as rentals. AB 2299 requires — not allows but requires — local governments to allow ADUs in all zones. In effect, AB 2299 does away with single-family zones throughout California.
If you thought that you bought and lived in a single-family zone, that is no longer true. Every lot is now allowed to have at least two dwelling units. These units can be up to 1,200 square feet and do not have to abide by the standard setbacks or parking requirements. If you think your neighborhood is crowded now, it is about to double in density.
AB 2299 is, in part, a product of the California real estate industry in a bid to drive home prices even higher (and of course their profits). Since every homeowner can now have a rental unit and its income, home prices will skyrocket.