Accessory dwellings are all the rage, and I have some new stats to highlight explosive growth of ADU permits in the United States. And I went viral twice in recent weeks, and I want to share some thoughts on that now that I’m back from vacation.
UPCOMING SPEAKING GIGS:
8/6/26 PCAR Auburn
8/25/26 Elk Grove MLS Meeting 8:30am
9/1/26 ROG Talks
10/2/26 PCAR Rocklin
10/21/26 Coldwell Banker Sierra Oaks / EDH
AN EXPLOSION OF PERMITS FOR ACCESSORY DWELLINGS
Some new research from Cotality shows an explosion of ADU permits in the United States, so we have a real trend on our hands. However, I’d like to see how much California means here in the data since California had 72% of the ADU permits in the country in 2025 according to Cotality research.
TOP TEN STATES FOR ACCESSORY DWELLING PERMITS
Check out the top ten states for ADU permits. If you live in one of these states, are you starting to notice more accessory units? They are extremely common here in California, though not in every neighborhood. Being that they are expensive to build, I typically see them in locations above the median sales price. I’m definitely noticing more investors adding them to their properties to create ADU compounds also.
By the way, which state would lead in non-permitted ADUs?
IT’S POLICY. NOT JUST SUPPLY & DEMAND.
It’s nice to see California on top of a list these days since the state gets so much hate online, and leading is a reflection of progressive housing policy to ease the construction of ADUs. This is a powerful reminder that policy shapes the housing market. We often say housing is about supply and demand, but policy shapes supply and demand. All that said, it’s nice to see more accessory dwellings, but we need all types of units, and ADUs alone aren’t the solution to a housing shortage (even though they will help).
THE LINE IS GETTING BLURRY
The line between an ADU and a full-fledged second unit is getting blurry. For instance, last week someone asked me if a duplex with an ADU would be considered a triplex. That’s a good question. Let me ask you this. Is a single-family home with an ADU a duplex? I’m not trying to create confusion. All I’m saying is there are some big questions ahead, and expect a growth curve for the real estate community and lenders. I believe lenders have been behind the ball already with not allowing an ADU on a duplex, but thankfully this is changing (thanks Joe for the comment (I updated this sentence)).
GETTING EASIER TO FIND ACCESSORY UNITS ON MLS
MLS added an “ADU” field a couple years ago, and this is a great feature that many people don’t know about. Check out how many properties come up with potential ADUs when I’m looking at current listings, pendings, and sales in 2026. If you don’t see the “ADU” field while doing a map search, click “fields’, and then add the “ADU/2nd Unit” category so it will show up during every search from now on. You can also try the “Other Structures” field and then select “Guest House” to see if that works. I find when searching for ADUs, we have to try different ways of finding comps. In addition to these two fields, I would also click “search criteria” and “public remarks” to type in stuff like, “ADU,” “mother-in-law,” and “guest quarters.”
The positive here is we have so many types of structures to look through, but we also have to sift through other stuff like a pool house, studio without a bathroom, she shed in the backyard, garage conversion, and other stuff. Remember, an ADU needs a sleeping area, bathroom, and cooking area, so if it doesn’t have one of those elements, then maybe the ADU field shouldn’t be selected on MLS? All that said, real estate isn’t always black and white, so I think no matter what there is going to be some sifting needed. Whatever the case, this is absolutely a step in the right direction, and I appreciate Metrolist being on top of this.
I WENT VIRAL & I HAVE SOME THOUGHTS
I had two really viral posts on Twitter / X, and I have some thoughts to share. I guess this is off-topic, but it’s my blog, right?
MY TAHOE VACATION VIRAL POST
After a vacation in Tahoe last week, I posted the following photo on X (Twitter) because I thought it was striking for an Airbnb owner to warn about a Craigslist scam on the outside of the house. I think most people understood that I was simply a guy sharing this photo while legitimately renting the house, but I’ve had to clarify a good amount that I was not scammed. I added a few comments on the thread to add clarity too, of course. This post had 5.9 million impressions though. Holy Batman!!
- Sometimes the most random stuff can go viral, and that’s what’s so puzzling about social media. I’ll very likely never have a blog post or real estate content that has quick reach like this.
- I don’t think going viral is the goal. In my mind, the goal of social media is to consistently get on base and build relationships with people. This post didn’t really add too many followers either.
- Going viral takes a ton of time to respond, clarify, and have the same conversation over again a few hundred times probably. Part of the problem here is my original post probably needed more information, so that’s on me. As Mike Simonsen said to me, “There is nothing like a viral tweet to ruin a weekend.” Haha.
- This led to an interview with KCRA Channel 3, and my photo is in the NY Post too (looks like a mug shot). I don’t know if this is good or bad, but I guess I think it’s kind of funny.
Okay, let’s talk about the second viral post, which got surprisingly ugly for such a lighthearted topic. I was sharing about my garage man cave and what a difference it has made in my life for building friendships. Check out the thread here if you want. I’ve been very open in recent years about working too much and finding myself to be a statistic in the male loneliness epidemic. Anyway, I’ve been intentionally working to build friendships with people instead of just working, and this man cave has played a big part in helping me create some new patterns in life. I know I’m not alone here either because so many people have told me they can relate, and I’ve had some real estate friends ask me if their husbands can hang out with me (yes, they can).
- Going viral can bring out some very nasty comments. When friends saw the comments on this thread and some quote tweets, they were collectively saying to me, “WTF happened here?” Honestly, I don’t know. I have to think the thread was linked to some online group because people came at me strong saying I wasn’t a real man, I was gay, this was an AI photo, and I was an out-of-touch Boomer (I’m Gen X). As soon as I posted that I was going to silence my notifications on the post, activity died down, and that tells me people are just looking for a reaction. Yikes though. The ugly part of going viral is this is what can happen in the comments.
- The real world is full of cool people. Ultra-negative comments on social media don’t reflect what the real world is actually like. Don’t let the trolls shape your worldview.
- I picked up 3,000+ followers from this post. I don’t know how many are real people versus bots, but I’d say despite the negativity, so many people are craving friendships and they resonated with my garage.
- Be careful about micromanaging people’s words online. What we don’t want to do is look at a few sentences and assassinate a person’s character based on that. It’s sort of like when someone says they like apples, another person will then say, “Why do you hate oranges?” Sigh.
- By the way, if you’re thinking constantly about whether you’re an alpha or a beta male, maybe it’s time to check yourself and start ignoring those labels. In my view, a man takes responsibility for his life and offers strength to others, and there isn’t just one narrow package of what a man looks like either.
- My kids weren’t happy that I responded to the negative comments, and it honestly affected my mood quite a bit that weekend, but here’s the thing. I’m not okay with people talking to me like this, so I wanted to say something. Was it worth it? Probably not to be honest. I did like that a few people deleted their nasty comments though after I would say things like, “Tell me more. How is it gay to build friendships with people?” I just hate that people can be so mean and I have to sit there and take it. I’m not looking for any lectures here. I just wanted to share my thought process of why I said something rather than nothing. You do you.
- Lastly, this reaffirmed my belief that we get to choose how we show up in person and online, and I believe we need to be the same in both places. Be cool to people. Mean people suck (’90s bumper sticker reference).
Anyway, I’ve had enough viral content over the past couple of weeks. I’m okay with modest reach ahead.
Thanks for being here.
Question: Would you ever build an ADU? What do you think of this trend? And what do you think about going viral?
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Hey Viral Ryan! I’m still laughing that you popped up in my son’s feed….
Some news on ADUs. Fannie Mae, as of March 31, 2026, allows multiple ADUs on one-unit properties and allows an ADU on multi-unit properties as long as total door count does not exceed 4. The new policy only applies to lenders using UAD 3.6 policy. It’s in the Selling Guide UAD 3.6 Policy Supplement.
The vast majority of the time the market considers them small income residential-triplexes or fourplexes. The only exception I’ve run into is on small acreage residential properties. I run into main homes with multiple ADUs somewhat frequently and these are not triplexes or fourplexes in general. An investor is not going to spend extra for the large lot to get a triplex on 5 acres, for example-it’s a waste of money.
Yeah, that was wild. I had a neighbor text me to say here college son saw the post too. Small world I guess.
Thanks for the clarification. I am behind on that, and I need to catch up. I’m glad you mentioned that. I should have looked it up to see if anything changed, but as of the time I last wrote about this, it hadn’t. Ultimately, this is what I expected to see happen eventually. It’s still blurry though, and I think there is serious discussion ahead on this. The permits say ADU. What does the market say? I like your thinking on the triplex example.
People are building ADUs as a response to the unaffordability of a regular size house here in California. New housing is where new home buyers would often go in the past but all the requirements of solar and no gas, Mello Roos taxes and HOA fees on top are a no go for many buyers. There will be an eventual tempering ADUs as well. Not sure if in my lifetime but not everyone likes the extra car parking that comes from dense housing.
Thank you. And this is the dark layer here that some people maybe aren’t thinking about. Yes, it’s a good thing to see ADUs built, but if homes were affordable, it probably wouldn’t be happening to this extent.
Hi Ryan!!!
I think your photo does NOT look like a mug shot! You look amazing!!! Healthy, happy, fit and always smiling!!! Thanks for these great posts.. I have a property coming up on over an acre, where the county says an additional 2 plus ADU’s can go up…it’s a great marketing advantage!
You are too kind. It’s so nice to hear something positive, Patricia. I’ll admit it’s been a hot mess of negativity in my mentions online lately. Haha. Agreed on the marketing advantage too, and it’s nice that lenders are catching up to the trend also to lend on units like this.
Hi Ryan,
I have been building ADU’s since 2006. I find that MOST appraisers do not give it the value it deserves. For example, I just completed a 1180 sq ft 3 bdr 2 bath adu behind a 6 bdr 3 bath home in Citrus Heights, ca 95610. It was a fix and flip home purchased for $385,000 after it was rehabbed it appraised for $630,000 as an SFR. I then contracted for the Newly constructed ADU for $285,000 plus permits and fees came to $307,000. A refinance appraisal was made and even after installing the required Solar and Tesla battery system. The appraisal came in at $683,000 and did not give ANY value to the ADU??? I later hired an AMC through another firm, and after researching the comps myself it came in at $850,000. I question how the first appraisal could be so low but was told that the appraiser made the adjustments he felt were correct. How can that be so different if standards from the appraisal institute were used? I would appreciate your response to this question.
Hi Kurt. I appreciate you sharing. That is a massive ADU. Wow. Are you saying the second appraisal came in at $850,000? Or that was your estimation of value? Sorry, my tea may not be working yet, and I’m still feeling it as the first few days back after Tahoe. It’s always possible there is a difference in value for a few reasons: 1) There is always a range of value, so we can’t expect valuations will be exactly the same; 2) Someone is not correct here if the range is so wide. There is no justification for this, but it happens. I think it happens with real estate agents also. This is one of the imperfections of valuations. I would say it’s a human issue, but I don’t think machines even get it right either. Sorry to hear this happened though.
I do think sometimes appraisers will say, “There were no ADU comps,” but our MLS system has some great features to help us find ADUs, so I think giving no value is not a reasonable option here.
Ryan, I would like to know if you would agree with this article on the value hit on the neighbor’s property.
The Hidden Cost of ADUs: What Happens When Your Neighbor Builds One?
Accessory Dwelling Units (ADUs) are often promoted as a simple solution to housing shortages. Supporters point to rental income, multigenerational living, and increased housing supply. What is rarely discussed, however, is the impact an ADU can have on neighboring properties.
When an ADU is built, the property owner receives the benefit. Their property may gain additional living space, rental income, or increased utility. But what happens to the neighbors?
The View You Paid For
Many homeowners purchase a property because of what they see from their windows and backyard. Mature trees, open space, natural light, and a sense of openness all contribute to quality of life and property value.
When a neighbor constructs a large ADU, those benefits can disappear.
A structure that was never there before may block views of trees, sunsets, or open sky. A backyard that once felt private may suddenly be overlooked by new windows and second-story living spaces. The result is often a measurable reduction in enjoyment of the property and, potentially, its market appeal.
While the ADU owner gains additional value, neighboring homeowners may experience a loss.
Privacy and Light
Privacy is one of the most overlooked consequences of backyard development.
Many single-family neighborhoods were designed around generous setbacks and open yards. ADUs can introduce new sight lines directly into neighboring homes and outdoor living areas. Residents who once enjoyed privacy may find themselves living within view of additional occupants only a few feet away.
Likewise, larger structures can reduce sunlight to neighboring yards, gardens, and outdoor spaces. What appears to be a modest addition on one property may have a significant effect on the neighboring lot.
Neighborhood Character Matters
People choose neighborhoods for a reason. They value the appearance, spacing, and feel of the community.
As more ADUs are added, some residents worry that neighborhoods gradually lose the characteristics that originally attracted homeowners. Increased density can lead to more vehicles, more activity, and more structures competing for limited space.
This is not simply an aesthetic concern. Neighborhood character often contributes to property desirability and value.
The Unequal Distribution of Benefits and Costs
The central question is not whether ADUs provide benefits. Clearly they do.
The real question is who receives those benefits and who bears the costs.
The ADU owner may gain rental income and increased property utility. Nearby homeowners, however, may experience reduced privacy, blocked views, increased noise, and changes to the character of their neighborhood.
These impacts are rarely reflected in discussions about ADU policy.
A Conversation Worth Having
Before communities encourage widespread ADU construction, they should consider both sides of the equation.
Housing solutions should not focus solely on increasing density. They should also respect the investments homeowners have made in their neighborhoods, their privacy, their views, and the qualities that make a neighborhood desirable in the first place.
A mature tree canopy, an open view, and a sense of space have value. When a neighboring ADU takes those away, that loss deserves to be part of the conversation.
Ben Richardson
Hi Ben. Thanks so much. You know, let me unpack this a little and think more before hastily responding due to crazy deadlines today. I’ll get back to you.
Okay, Ben. I see the point here, and an ADU could affect the view and vibes for neighbors, but to be fair, so can just about anything else, right? I think this is where zoning code and thoughtful design review need to come into play. Yet, there is still that part where we never quite know what a neighbor is going to do and we don’t get to control what happens in somebody’s rear yard. What if my single-story neighbors all build two-story additions? That would be legal, and it would change how things feel. We see this sometimes in older classic areas where homes are torn down and a “McMansion” is built. I’ve definitely talked with people through the years who were not happy about that. When it comes to an ADU, hopefully there are setbacks and reasonable height requirements that would not mess with the view too much for the neighbors. Have you seen examples that are awful? What if it was a pool house or a large shed? Is the issue that there is an occupant in there? I’m just wondering if you are saying all structures shouldn’t happen or just an ADU?
These are rhetorical questions too. But I’m here for the conversation as needed. I’m really glad you brought this up.
I think there is a legitimate concern for parking here. I’m not so concerned if a house here and there has an ADU, but if they started to be ample, that could change the feel of the street. This is where an ADU might not make sense for every parcel.
Thanks Ryan for being so open and honest and for showing a little something about who you are and your life. I appreciate so much when people are “vulnerable”. I follow you professionally and enjoy you sharing a little of your personal life…:)!!
ps Your Man Cave look amazing…and could easily be converted to a She Shed…:)!!!
Joelle, thank you. You know, I think our vulnerability is what makes us human, and I’m figuring out how to lean into that more. I’ve made some subtle changes in my personal life in recent years that have really brought tremendous joy. I’m not where I want to be yet with friendships, but I am in such a better place today than just a few years ago.
And yes, it could be converted. Haha. It could also be a “People Cave” if someone doesn’t like gender to be mentioned.
There is a company near me in Happy Valley Oregon that.avertises “ADUs ready to install” I only saw the sign along the freeway so I have no details. Perhaps Mr. Malik from the Portland appraisal blog has more knowlledge.
Thanks, Truett. It seems like a felt need for something like that. I know here it can be an incredible mess trying to get an ADU built. Companies that streamline the process can make serious money. There was a local ADU company that said they were doing that, but they were collecting money and not building them.
One thing similar to this are pre-approved plans available from cities. Davis has free plans available on their website to streamline ADU approvals. Other cities have similar programs.
Yeah, I like that part. It can save a few thousand dollars from my understanding.
Ryan, you’re the last person who deserves any hate online. I have been reading your blog since the beginning, I consider you a friend (although we have only met a couple times), and I’ve never seen a hateful thing come out of you, even in private texts that could easily show a different side. It’s easy to hide behind a keyboard and say hateful stuff. Let that shit bounce off you. You earned your fame and you know who you are.
Friends for sure, Gary. I really do need to get to Portland at some point again soon. I appreciate the kind words and encouragement. I think I let the comments stick to me at first, but they definitely mean nothing to me now.
The California HCD ADU handbook has rules about ADUs that establish a baseline. Apparently those rules can be loosened as much as a given jurisdiction will allow but cannot be made more restrictive than the states rules. San Diego county has taken that and run with it. There are properties on large lots with multiple ADUs. Those are very difficult to value. We all need an understand that cost doesn’t always equal value. The market determines contributory value. I tell Realtors that if you don’t sell it for more because it has a pool, ADU, solar or whatever, then I can’t appraise it for more. The appraiser brain looks at the differences between homes and extracts out the value added by ADUs and other costly features.
On the viral response, some people bring the negativity and stink to every thing they touch. I know you are active on the socials but life on the other side with no social media is a peaceful place. You’ll likely never get punched in the face if you stay out of boxing rings. Good job and great info as always
Always appreciate your take. Location plays a role here too as the contributory value isn’t going to be the same everywhere. This is true for price point as well as geographical region. I hear the Bay Area and SoCal yields more ROI for ADUs compared to what we see in Sacramento. That’s what ADU builder types have told me.
Life without social media. That sounds pretty amazing. 🙂
Hi Ryan,
I loved the man cave post! I used to not comment on people’s posts, especially if they had huge followings, thinking it was just one lost comment in a sea of negativity. But, I get so bothered by people going out of their way to be mean that I now post positive comments figuring I will try to offset others. It is not always easy to be vulnerable on social media, yet those are the posts that most connect us and I think it is important to cheer those posts and support people.
I love it, Sherry. You are a good person, and thanks for what you do. I love the idea of being a small light in the midst of negativity. You are so right about what connects people. It’s vulnerability. Hands-down.
People can just scroll past. They don’t need to comment on everything.
True story. Thanks Alison. The old saying still rings true today, “If you don’t have something nice to say, then keep yo’ trap shut.” 🙂 I try to practice this mostly every day when scrolling Facebook. Haha.