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AB 1033 and the Future of ADU Sales in California: A New Era for Property Ownership

In 2023, California's housing landscape experienced a significant shift with the enactment of Assembly Bill 1033 (AB 1033). This new legislation has the potential to transform the Accessory Dwelling Units (ADUs) market by altering how these units can be bought and sold.

This blog post explores the nuances of AB 1033, focusing on its implications for selling ADUs separately from the main home, especially in regions like Greater San Diego and beyond.

Explore AB 1033's impact on California's ADU market: new laws allowing separate ADU sales, reshaping homeownership in 2023.

Unpacking AB 1033: A Game Changer for ADU Sales

Background: AB 1033, passed in October 2023, is a pivotal California state law aiming to enhance affordable homeownership.

Essence of the Bill: It allows for the possibility of condominium conversion of ADUs, subject to local ordinances, enabling them to be sold as individual units.

The Revolutionary Shift in ADU Ownership

Traditional vs. New Approach: Previously, ADUs in California were inseparable from the main property. AB 1033 removes this restriction, granting local governments the power to decide on separate sales.

Empowering Homeowners: This change potentially allows homeowners more flexibility in managing their properties, especially in high-demand housing markets.

Why Separate ADU Sales Matter

Increased Housing Options: Separate sales could lead to a rise in affordable housing availability.

Property Valuation Impact: This could potentially increase the overall value of properties with ADUs, altering the real estate landscape.

The Role of Local Jurisdictions

Decision-Making Authority: The power to permit separate ADU sales now lies with city and county governments.

Current Status: As of late 2023, cities in Greater San Diego have yet to formalize regulations allowing separate ADU sales.

The Condominium Conversion Process

Condo Mapping Explained: This legal and regulatory process involves converting a single property into multiple, individually owned units.

Key Steps: From preliminary assessment and application to compliance with local building codes and safety standards, condo mapping is crucial for homeowners interested in selling their ADUs independently.

The Path Ahead

AB 1033 marks a potential turning point in the ADU market in California. While it opens up new possibilities for homeownership and property management, the actual implementation of separate ADU sales depends on local government decisions. For residents of California, particularly in urban areas, staying informed and engaged with local housing policies will be crucial in navigating this new terrain.


AB 1033 ushers in a new era in the Californian housing market, offering novel opportunities and challenges in the realm of ADU ownership. As we observe how local governments respond to this legislation, the landscape for ADU sales and ownership in California is poised for significant changes, promising intriguing prospects for homeowners and real estate developers.

Stay Informed:

For those interested in exploring the opportunities presented by AB 1033 or seeking guidance on ADU developments, staying informed about the latest updates and local regulations is key to making informed decisions in this evolving landscape.

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