It’s been a little over a month since SB9 passed and was signed in to law by Governor Newsom.
Senate Bill SB9 allows property owners to build up to four units on a traditional R1 lot with approximately 80% of R1 lots in California qualifying. In order to qualify, lots need to have a minimum amount of room to allow for additional structures, not be a historic property and a few other requirements, but the vast majority of R1 lots in this state qualify by design.
The law allows lot-splitting as well where a lot can be split into two lots and each half lot can then hold two units. There are some minimal requirements for adequate space and set-backs for the new structures but most R1 lots in San Diego are able to make this conversion. One study by the American Enterprise Institute estimates that approximately 2.5 million single family homes could be eventually converted to duplexes (or fourplexes) with maybe half a million units estimated to be constructed over the next 10 years. Just in the last three years over 15,000 Accessory Dwelling Units (ADU/granny flats) have been constructed in California.
I know of a small firm in La Mesa that draws up designs and blueprints for ADU’s and their business is booming right now. I attended a workshop recently with a company that builds a cement pad, installs plumbing and electrical and then drops a prebuilt unit on the pad by crane and secures it. They also said that their business was busy and to expect fairly long wait times for their services.
One thing is for sure, the make-up of our local neighborhoods will drastically change over the next 20 years.
Density will increase and street parking will grow. Critics of SB9 claim that the law does not allow for enough driveway parking for these new units and the set-back requirements are too small. Some structures could be built too close to the sidewalk or other structures and street parking will become too dense.
The neighborhoods directly south of San Diego State University are already experiencing a significant increase in construction and density with quite a few two-story towers being built in the backyards of single-family lots. The next time you attend a basketball game at Viejas Arena, drive down Mary Lane and Dorothy Ave. and have a look for yourself at all the backyard structures. That is what is coming soon to your neighborhood and there is no stopping it.
Market report. The median price increases are for SFR, with changes from one year ago.
92115 College Area: year over year median home prices increased 24% to $823,500, inventory is still ultra-low with just 22 properties for sale in the entire zip-code.
92119 San Carlos: The SFR median home price increased 27% to $1,000,000 and inventory available for sale is at only 12 properties for sale in San Carlos.
92120 Allied Gardens, San Carlos had a 32% median home price increase over the past 12 months and only 9 homes are currently for sale!
If you are interested in a no obligation opinion on buying or selling real estate in San Diego, give me a call to schedule a meeting. I offer professional advice with absolutely no pressure. Call me. (858) 431-6043.
– Sarah Ward is a realtor with Fine & Coastal Real Estate.
