03

ADUs

Let homeowners add a home

A backyard cottage, garage apartment, or basement home can house a parent, a renter, a caregiver, or the next generation.

In plain English

Let a household add one or two small homes on a lot it already owns—inside the main house, over a garage, or in the backyard.

How it works

Remove the barrier. Let homes respond.

01

Use existing lots

ADUs add a home where land and infrastructure already exist.

02

Lower project scale

Individual households can participate in adding supply.

03

Expand flexibility

A home can serve relatives, caregivers, renters, or changing family needs over time.

The implementation test

Real reform or paper promise?

An ADU is a real home, not a loophole. It still follows building, fire, sanitation, and safety codes; reform removes unrelated barriers to who may live there or park there.

TestStrongWeak or symbolic
Permission

StrongAttached and detached ADUs are allowed by right.

Weak or symbolicNeighbors or a hearing body can veto a compliant home.

Household rules

StrongThe owner may rent either home to any household.

Weak or symbolicOwner-occupancy or family-only rules restrict ordinary use.

Delivery

StrongClear plans, fees, and review timelines make small projects manageable.

Weak or symbolicBespoke review costs as much as a larger development.

Strong policy principles

  • Allow attached and detached ADUs by right.
  • Remove owner-occupancy and family-relationship restrictions.
  • Use clear size, height, fire, and utility rules.
  • Offer pre-approved plans and predictable fees.

Watch for

  • Mandatory replacement parking
  • Utility fees resembling a second full house
  • Discretionary design review
  • Rental prohibitions

Pair it with

  • Pre-approved plans
  • Low-cost homeowner loans
  • Technical assistance
  • Fee waivers for income-restricted ADUs

Measure whether it works

  • Applications, permits, and completions
  • Median approval time
  • Project cost
  • Long-term rental availability

In practice

What this reform looks like on the ground.

Seattle, WashingtonAugust 8, 2019

Ordinance 125854

Seattle allowed two ADUs on eligible lots, removed owner-occupancy and off-street-parking requirements, and relaxed size and location rules.

Lesson

An ADU reform works as a package. Allowing an extra unit means little if household restrictions, parking, or physical standards still prevent ordinary projects.

Evidence status

Seattle's ordinance and annual ADU reports document the rule change and the permitting response. Comparative ADU research explains why parking, occupancy, fees, and design rules work as a package.

Seattle ordinance and legislative record ↗ (opens in a new tab)

Why support it?

The evidence behind the solution.

Strong evidence

A city cannot build homes it has made illegal.

Legalize real projects across enough land and builders respond. Auckland did this at city scale and saw a large permitting boom; narrower reforms have usually delivered less.

Keep in mind: Permission is necessary but not sufficient. Financing, land, construction costs, approval time, and demand determine whether newly legal homes are actually built.
Strong evidence

Legal on paper is not the same as buildable in practice.

A reform can promise density and still bury it under tiny maps, parking ratios, setbacks, fees, hearings, and delay. Good reform makes ordinary projects legal, feasible, and predictable.

Keep in mind: Chicago's narrow reform produced no detectable building increase in its early years. That helps show why scale, feasibility, and follow-through matter.
Established evidence

Free parking is paid for through everything else.

A parking space consumes land, concrete, and money. Mandates hide that bill inside every home—even when a resident would rather have lower rent than a place for a car.

Keep in mind: Removing a mandate does not ban parking. Builders can still provide it where residents will pay for it, while cities manage curbs and accessibility directly.
Study chart · redrawn

Figure 2 · Living space after upzoning

The strongest post-reform increases appear after roughly five years, especially for large upzonings.

REDRAWN FROM STUDY DATAFigure 2 · Living space after upzoning
Figure 2 · Living space after upzoningThe strongest post-reform increases appear after roughly five years, especially for large upzonings. Values digitized from Figure 2; the long-run all-treatment value is checked against the paper’s approximately 9% estimate in the archived publication; minor reading error is possible.-5%0%5%10%15%Living-space effect (%)Years relative to upzoningAll upzoningsLarge upzoningsSmall upzoningsUPZONING−4−1+2+5+8+9
Figure 2 · Living space after upzoning. Values digitized from Figure 2; the long-run all-treatment value is checked against the paper’s approximately 9% estimate in the archived publication; minor reading error is possible.
Years relative to upzoningAll upzoningsLarge upzoningsSmall upzonings
−4-1-20
−30-10
−2-10-1
−1000
0000
+1010
+2121
+3241
+4362
+5593
+66114
+77135
+88155
+99166

Source: Büchler & Lutz (2024), Figure 2; PDF p. 8.

Read carefully: The outcome is living space, and local quality-adjusted rent differences were not statistically clear.

Study chart · redrawn

Figure 6 · Estimated treatment effects on dwelling permits

The estimated effects become positive after the reform for both attached and detached homes.

REDRAWN FROM STUDY DATAFigure 6 · Estimated treatment effects on dwelling permits
Figure 6 · Estimated treatment effects on dwelling permitsThe estimated effects become positive after the reform for both attached and detached homes. Values digitized from Figure 6 in the archived publication; minor reading error is possible.00.5011.5Additional permits per areaYears relative to reformAll dwellingsAttachedDetachedUPZONING−4−20+2+4+5
Figure 6 · Estimated treatment effects on dwelling permits. Values digitized from Figure 6 in the archived publication; minor reading error is possible.
Years relative to reformAll dwellingsAttachedDetached
−4-0.050-0.02
−30-0.020
−20.0200
−1000
00.10.050.04
+10.250.150.1
+20.450.30.15
+30.750.550.2
+41.150.850.28
+51.451.050.35

Source: Greenaway-McGrevy & Phillips (2023), Figure 6; PDF p. 34.

Read carefully: The outcome is permits per statistical area, not completed homes; the control comparison relies on non-upzoned areas.

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