California multifamily building owners have embraced accessory dwelling units (ADUs)

National REITs and local investor-operators have successfully completed numerous ADU projects and plan to continue expanding. Multifamily owners are converting carports, greenways, and other spaces into entry-level apartments, often within a year. New laws and prefabricated construction methods have facilitated faster building timelines. AvalonBay has added around 50 ADUs in California, with average studio and junior one-bedroom units renting for $4 to $8 per square foot, typically leased within 30 days and with few tenant concerns.