ADU construction Bay Area California 2025
ADU

ADU Laws in California 2025:
What Bay Area Homeowners Need to Know

January 2025 8 min readBy Homee Renovation LLC · CSLB #1086265

California has passed some of the most homeowner-friendly ADU legislation in the country over the past five years. If you own a single-family home in the Bay Area, you almost certainly have the right to build an ADU — and the process is simpler than you might think.

What Changed in California ADU Law

Between 2017 and 2024, California passed a series of laws (AB 68, AB 881, SB 13, AB 3182, AB 2221, SB 897, and more) that dramatically streamlined ADU approval. The key changes:

  • Ministerial approval: Cities must approve ADUs that meet objective standards — no discretionary review, no neighborhood hearings.
  • 60-day approval deadline: Cities must approve or deny ADU applications within 60 days.
  • Reduced setbacks: Detached ADUs need only 4-foot side and rear setbacks in most cases.
  • No owner-occupancy requirement: As of 2020, California removed the requirement that the property owner live on-site.
  • Junior ADUs (JADUs): Up to 500 sqft within the existing home footprint, with minimal permit requirements.
  • Garage conversions: Converting an existing garage to an ADU is now streamlined and does not require replacement parking in most cases.

ADU Rules by Bay Area City

While state law sets the floor, each Bay Area city has its own ADU standards for size, height, setbacks, and design. Here's a quick overview of the key cities where Homee Renovation works:

CityMax ADU SizeMax HeightSetbacks
San Francisco1,200 sqft25 ft4 ft side/rear
San Mateo1,200 sqft16 ft (detached)4 ft side/rear
Los Gatos1,200 sqft16 ft4 ft side/rear
Cupertino1,200 sqft16 ft4 ft side/rear
Palo Alto1,200 sqft16 ft4 ft side/rear

How Much Does an ADU Cost in the Bay Area?

ADU construction costs in the Bay Area typically range from $300–$600 per square foot, depending on the type of ADU, finish level, and site conditions. Here's a rough breakdown:

  • Garage conversion: $100,000–$250,000 (lowest cost, existing structure)
  • Attached ADU (addition): $200,000–$400,000
  • Detached ADU (new construction): $300,000–$700,000+

Homee Renovation clients save an average of 30% on ADU materials — cabinets, fixtures, flooring, windows, and finishes — through our wholesale dealer relationships. This can represent $50,000–$150,000 in savings on a full detached ADU.

What is the ROI of Building an ADU in the Bay Area?

Bay Area ADUs are among the best real estate investments available to homeowners:

  • Rental income: $3,000–$6,000/month for a well-located Bay Area ADU
  • Property value increase: $400,000–$800,000+ added to property value
  • Payback period: Typically 5–10 years on construction cost

Homee Renovation's ADU at 33 W Bellevue Avenue in San Mateo — a 2,194 sqft detached ADU — is a prime example of what's possible. The project added significant rental income potential and resale value to the property.

How to Get Started with an ADU in the Bay Area

The first step is a feasibility assessment — understanding what you can build on your specific property given your city's zoning, setbacks, and lot coverage rules. Homee Renovation offers free ADU feasibility assessments for Bay Area homeowners.

From there, we handle the full process: design, structural engineering, permit application, plan check coordination, construction, and final inspection. One team, one contract, one point of contact.

Ready to Build an ADU?

Get a free ADU feasibility assessment and estimate from Homee Renovation. We serve San Francisco, San Mateo, Los Gatos, Cupertino, Palo Alto, and the entire Bay Area.

Get a Free ADU Estimate