San Diego Now Allows Tiny Homes and Park Models as ADUs

Real Estate Broker/Owner with CREST "BACKYARD' HOMES, ON THE LEVEL General & Manufactured Home Contractor, TAG Real Estate Sales & Investments 521400, 1501015, 01795582

San Diego Now Allows Tiny Homes and Park Models as ADUs

The ADU landscape has changed in a big way.  This is great news for property/homeowners and investors with small lots with limited space in some ways. The City of San Diego has recently passed an ordinance that allows Tiny Homes and Park Models to be installed as ADUs. All the San Diego jurisdictions are allowed to install them as well under special circumstances. But this is the tip of the iceberg. Jurisdictions Statewide, including the City of Los Angeles are also allowing them as well. It looks to be only a matter of time before we see many if not most jurisdictions beginning to allow them.

This does come with a caveat, however. Albeit Tiny Homes and Park Models are a lot less expensive than site built and even manufactured ADUs, at this point they not allowed to be included as a real estate improvement. They are considered chattel and will not be eligible for long term conventional real estate financing. So if you're an investor looking for low cost additional revenue streams this could be a viable solution. However, don't expect it to increase the value of your real estate investment; At least not at this point. 



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John DL Arendsen, Broker, General & Manufactured Home Contractor and Dealer 

TAG Real Estate Sales & Investments

TAG (The Arendsen Group) Real Estate Sales & Investments is a full service, one-stop, turnkey, family owned and operated real estate brokerage, General Contractor, Manufactured Home Contractor, Developer, Investor, Property Manager, Interior Design, Engineering, architectural, Landscape design, Expert Witness, Consulting, Curative Title and Troubleshooting company with over 100 years of combined experience in the San Diego real estate sales, construction, design & development arena.





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Comments (9)

June Piper-Brandon
Coldwell Banker Realty - Columbia, MD
Creating Generational Wealth Through Homeownership

I had a client recently put their home up for rent to try living in a Tiny House with her husband and child.  I'm not sure I could.

Aug 29, 2021 08:59 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

This is very good news and homeowners should be able to have these at their homes if they have the land to do so.

Aug 30, 2021 07:35 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning John! With land prices so high, more affordable ADUs will become an increasing necessity

Aug 30, 2021 07:37 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


I thought of you, when I saw a recent article in the WSJ on ADU's being built out of garages.  A

Aug 30, 2021 08:10 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ

This is awesome news for so many folks who need an extra 'tiny home' for adult kids, grandparents or whoever.   Even tho it's still considered chattel it's still the perfect solution for many folks who want their loved ones close by.

Aug 30, 2021 05:44 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

That's great news for many families who are becoming multi-generational in their living quarters.

Aug 30, 2021 05:56 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi John- I sent some of your posts to someone I was speaking with about ADU's just recently. Their daughter and son-in-law are looking at a home on a large lot and were hoping her parents would consider moving nearby. 

Aug 30, 2021 07:28 PM
Dorte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear John,

Very nice. We need more non-traditional housing in all cities for those single folks, temporary work visitors, offices for people, who want to get out of their bedrooms, places for elderly relatives, who want their own space & so on.

Aug 30, 2021 08:17 PM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

It seems to me that both Tiny homes and ADU's will (eventually) become the rage throughout the USA. Great post.

Sep 07, 2021 06:50 AM