As San Jose grapples with declining home building permits, one sector remains resilient: accessory dwelling units, also known as ADUs.

Thanks to a series of state laws passed several years ago, homeowners now have more control over what they can do with their property, and that includes building ADUs. Once considered a niche housing option, ADUs have become a vital part of the city’s residential growth strategy. A combination of state housing reforms and local incentives has helped homeowners take the lead in producing new units. Unlike most housing projects, ADUs are built on existing land and, in some cases, are insulated from city fees.

San Jose has openly embraced ADU production. This year, the city has issued permits for more than 400 ADUs. Most of these units are under 700 square f

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