📰 What Happened: A now-defunct incentive program fueled a surge in San Diego ADU construction over the last three years. According to a county report, 45% of new permitted housing units in 2024 were ADUs. Notably, smaller homes made up most ofthe new affordable units for both middle- and lower-income residents.

🔍 A Closer Look: Policymakers had hoped to use ADUs as a workaround to regulatory and political barriers facing larger developments. While ADUs proved popular with homeowners building for family or rental income, officials remain divided on ADUs as a scalable housing solution. Their affordability remains a key concern as the county evaluates its housing strategy.

🧠 Why It Matters: With major multifamily and subdivision projects bogged down by red tape and cost barriers, ADUs have become a rare bright spot in local housing production. Their continued relevance could hinge on reviving incentives and clarifying affordability metrics.