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Can an ADU Be a Primary Residence in California?

What Is an Accessory Dwelling Unit (ADU)?

An ADU is a small, self-contained living space on the same property as a primary dwelling unit. Also called a secondary housing unit, guest house, or granny flat, an ADU has its own kitchen, bathroom, bedroom and private entrance. In California, these units have become popular due to housing demand, flexibility and rising property values.

ADUs can take many forms: attached ADUs attached to the primary unit, detached ADUs in the backyard, garage conversions of an existing garage, or even parts of the primary dwelling unit. Whatever the type, ADUs can add functionality to a single-family residential lot by providing extra, private living space for family members, renters or the homeowner themselves.

Can a Dwelling Unit Be Your Primary Residence?

In short—yes. A dwelling unit, including an ADU, can be your full-time home. California law does not prohibit individuals from living in their ADU as their primary residence and recent state legislation has made it even easier for property owners.

Where ADUs were once considered secondary or accessory structures, they can now legally be your main living space. In fact, many California homeowners are moving into their newly built ADU and renting out their primary unit, generating passive income while still living on the property.

No More Owner-Occupancy Mandates

As of January 1, 2024, AB 976 eliminated owner-occupancy requirements statewide. Local governments can no longer require property owners to live in either the ADU or the main home. This opens up more flexibility for both units and allows ADUs to be fully independent living areas. You can choose which home or living space will be your personal sleeping area.

Why Property Owners Are Choosing to Live in ADUs

Living in an ADU is becoming a smart and strategic housing solution. For many Californians, especially retirees or those looking to simplify, it’s the perfect way to stay in their community while reducing housing costs.

Downsizing for Retirement

Many property owners build a new ADU on their lot and move into it as they transition into retirement. These units require less maintenance and can be customized with accessibility features, so they accommodate long-term housing solution for aging in place.

Passive Income

By moving into the ADU and renting out the main house, homeowners can offset mortgage costs or generate a new income stream. This is especially impactful in neighborhoods near universities, hospitals or public transit corridors where rental demand is high. You determine if this is the right route for you.

Multigenerational Living With Independence

ADUs are perfect for family members who want proximity with privacy. Whether it’s aging parents or adult children, these self-contained living spaces provide independent living while staying close to loved ones. They are all on the same lot.

Real-Life Success Stories

We’ve worked with clients across the Sacramento region who’ve made the move. One couple downsized into their detached ADU, turned their single family dwelling into a high-earning rental. Another family converted their existing garage into a cozy ADU for a college-bound daughter. These aren’t just construction projects—they’re lifestyle upgrades.

Local Zoning Laws, Building Permits and ADU Requirements

Local Zoning Laws

While California law sets a baseline for ADU allowances, local zoning laws still control many aspects of how and where ADUs can be built. These laws govern square footage limits, height restrictions, setback requirements and more. For example, some cities require an additional parking space if the ADU is not located near public transit.

Building Permit Process for Building an ADU

Before construction begins, homeowners must obtain a building permit. This ensures the ADU complies with structural codes, safety standards, building codes and local regulations. The permit process can be complex, but our design-build team streamlines it by managing the paperwork, coordinating with city officials and ensuring full compliance with additional requirements such as fire sprinklers, foundation inspections and accessibility standards.

Design Considerations for ADUs Used as Primary Homes

Comfort and Function

When designing one ADU to live in full-time, comfort is key. This is especially true if you are considering it to be a single family home. While square footage may be limited, good design can make a smaller living space feel surprisingly spacious.* Open floor plans and vaulted ceilings make it feel airy.

• Large windows bring in natural light.
• Custom built-ins maximize storage.
• Outdoor spaces like patios or decks add extra square footage.

Whether you’re building a new construction, converting a garage, or a manufactured home, Golden State ADUs designs with livability in mind. You choose the path you want to take and customize your own design.

Utilities, Addresses, and Access

Depending on your city, your ADU may require separate utility connections for water, sewer, gas and electricity. Some cities allow shared connections especially for an attached ADU. Your ADU may also have a separate address or unit number. In some cities that have adopted Assembly Bill 1033, the ADU can be sold separately from the main house – as long as all local regulations and subdivision requirements are met.

[Learn how we design ADUs for comfort, compliance and long-term use.]

Financial and Tax Considerations for Living in an ADU

Financing Your ADU

Many homeowners finance ADUs through home equity loans, refinancing or construction loans. Lenders require the borrower to live in the property and that can include the ADU if it’s the declared primary dwelling unit.

Tax Benefits

When your ADU becomes your primary residence, you may be eligible for the California homeowner’s exemption which reduces property tax assessments. Check with your tax advisor or local assessor’s office for the latest information.

Insurance and HOA Considerations

Don’t forget to update your homeowner’s insurance to reflect the change in primary unit. If your property is in a homeowners association, check the CC&Rs for rules about ADU construction, design standards or rental usage.

ADU FAQs – Living Full-Time

Can I live in a new ADU full-time?

Yes. California law allows you to live in your ADU as your primary residence. There are no restrictions on full-time use.

Can I rent out my main home if I live in the ADU?

Yes. With owner-occupancy requirements removed, you can rent out the main home or the ADU as you choose.

Do I need a separate address or utilities?

Some cities allow shared utilities and addresses; others require unique service lines and a designated mailing address for the ADU.

Do I need fire sprinklers?

It depends on the square footage and local fire codes. We’ll get you the exact information from your city’s building department.

Is a detached ADU better for full-time living?

A detached ADU gives you the most privacy, so it’s a popular choice for property owners who plan to live in the unit full-time.

Bottom Line: Can You Live in Your Attached ADU?

Making your ADU your home is a smart, forward-thinking decision for many Californians. With today’s legal flexibility, financing options and design innovations, your secondary unit can become your primary home. Whether you’re building to age in place, simplify your life or create rental income, an ADU can be the key to unlocking your property’s full potential.

At Golden State ADUs, we help homeowners throughout the Sacramento area with every step – from concept to keys. We make ADU construction easy, transparent and custom to your needs.

Ready to Get Started with Your ADU?

Let’s turn your idea into a reality. Schedule your free consultation today and see what your property can do.