Avorino Advises California Homeowners to Lock in ADU Projects Before Policy Shifts

Associated Press

4 days ago

Infrastructure stress and political shifts may bring change—homeowners in LA, OC, Bay Area, and SD should build now while the opportunity lasts
IRVINE, CA, UNITED STATES, July 23, 2025 / EINPresswire.com / -- California's ADU (Accessory Dwelling Unit) boom is in full swing, transforming backyards into income-producing properties. But according to Kasper Vianna, owner of Orange County–based construction firm Avorino, the favorable environment may only last a few more years before regulation and political pressures change the landscape.
'ADUs are a fantastic opportunity for homeowners right now—but this window won't stay wide open forever,' said Vianna. 'We expect things to remain viable for the next few years, but longer-term, there are clear signs that change is coming.'
What Are ADUs and Why Are They So Popular?
Accessory Dwelling Units (ADUs)—also known as granny flats, in-law units, or backyard homes—are self-contained residential structures built on the same lot as an existing single-family home. They include a kitchen, bathroom, living area, and sleeping space and can be attached, detached, or converted from an existing space like a garage.
In recent years, the State of California has passed multiple laws to encourage ADU development as a response to the ongoing housing crisis. These laws have simplified permitting, reduced parking requirements, overridden local zoning restrictions, and limited the ability of cities to reject compliant applications. This streamlined process has opened the doors for thousands of homeowners to create more living space or generate rental income on their existing properties.
However, industry experts like Vianna believe this ADU-friendly climate is unlikely to last.
Early Warning Signs: Infrastructure Can Only Handle So Much
As more homeowners build ADUs in places like Los Angeles, Orange County, San Diego, and the Bay Area, infrastructure in many neighborhoods is becoming stretched. Parking shortages, water and sewer capacity issues, and electrical grid loads are already surfacing.
'In cities like Garden Grove, Santa Ana, Brea, and La Habra, we're seeing neighborhoods that were never designed to handle this kind of density,' Vianna said. 'It's still legal—for now—but as complaints rise, cities will likely start to resist or restrict.'
Avorino has built or is currently building ADUs in cities across Orange County, including La Habra, Garden Grove, Santa Ana, Orange, Irvine, San Juan Capistrano, Villa Park, Brea, Buena Park, Anaheim, and others.
Legal Resistance: Cities Testing the Boundaries
The legal tension between local governments and state mandates is growing. Huntington Beach, often labeled California's most conservative city, made headlines in 2023 after it stopped processing ADU and SB 9 applications. The California Attorney General and Governor's office filed suit, citing violations of the Housing Element Law and the Housing Crisis Act of 2019, which are designed to increase housing supply. The state argued that Huntington Beach's refusal to process applications would 'restrict housing production and worsen affordability for families across the region'
Huntington Beach officials defended their stance, citing concerns about local resources, community character, and environmental protection. They argued that dense housing mandates could negatively impact groundwater supply, protected wildlife areas, and coastal quality of life. As a charter city, they claimed legal authority to set their own zoning policies and framed the state's action as government overreach.
Vianna noted, 'This case shows both sides have legitimate concerns. If state leadership shifts, or enforcement weakens, more cities might pursue similar paths—and that could limit how freely ADUs can be built.'
Strong Economics for the Time Being
Despite future uncertainty, ADUs continue to offer strong financial upside for homeowners in 2025.
A 1,000-square-foot ADU can cost around $400,000 to build. It can rent for $3,000 to $4,000/month in high-demand areas. A 30-year loan at 8% would cost ~$3,000/month in debt service. Many homeowners see neutral or positive cash flow immediately.
'If tenants can pay your loan, and you still own the asset, that's a win,' said Vianna. 'In cities like Irvine, LA, San Diego, and the Bay Area, this is true more often than not.'
Disclaimer: Not financial advice. Consult with a licensed advisor before making investment decisions.
Comparing ADUs to Traditional Real Estate Investing
In metro California, a modest 2-bed home can cost upwards of $800,000 to $1 million—and generate similar rent to an ADU. The difference? With an ADU, homeowners avoid buying land, skip escrow fees, and build on their existing property—often for less than half the cost of a new home purchase.
Real Example: Santa Ana Homeowner Creates Cash Flow
One Avorino client in Downtown Santa Ana built an 830 sqft, 2-bed, 2-bath ADU in 2024 for approximately $350,000. The project was fully financed through a bank loan. The ADU rents for $3,500/month, generating strong positive cash flow from day one.
'The rent will only increase, interest rates may drop, and the property value continues to appreciate,' said Vianna. 'That means homeowners can win on multiple fronts—monthly income, equity growth, and refinancing opportunities down the line.'
'That's not speculation—that's strategic investing on your own land,' he added.
Misconceptions About Affordability
Some homeowners hesitate to build an ADU due to perceived high costs. Vianna encourages them to look at the numbers differently.
'If you get a $400,000 loan at 8% interest, your monthly payment is about $3,000. If your ADU can rent for more than that—and in most areas, it can—you're already ahead,' he said. 'This is how real wealth is built.'
Timeline to Build Is Longer Than Most Think
Even though ADU construction is permitted statewide, the process still involves: site assessment, architectural & structural plans, city approval and permitting, utility planning, construction and inspection.
'The time from first call to move-in-ready ADU is about 12 months, even in a best-case scenario,' Vianna said. 'Which is why the best time to start is now. If you wait until 2026, you may run into new rules—or miss the window entirely.'
Limited Availability for 2026 Projects
Avorino is currently accepting a limited number of new ADU clients for the remainder of 2025, with most builds slated to begin in 2026.
'We're focused on quality and client success. That means we don't overbook,' said Vianna. 'If you want to build in the near future, reach out now so we can design and permit your project ahead of the curve.'
How to Get Started
Check Your Lot: Not all properties qualify—Avorino offers free consultations to assess feasibility
Understand the Costs: Financing is available for many homeowners; the right structure makes all the difference
Schedule a Call: Visit www.avorino.com /schedule-a-meeting to speak with an expert
About Avorino
Avorino is a luxury design-build firm based in Irvine, California, specializing in high-end ADUs and custom homes. Known for white-glove service, fast timelines, and in-house project management, Avorino helps homeowners navigate the entire process—from idea to keys-in-hand.
As California's housing environment continues to evolve, timing and execution are critical. Homeowners who act now can capitalize on laws designed to empower them—before shifting politics or overwhelmed municipalities change the rules. The most strategic investments are often the simplest: making better use of what you already own.
For many, an ADU is not just a structure—it's a long-term financial tool. Whether to house family, earn rental income, or increase resale value, an ADU remains one of the most powerful ways to unlock the hidden value of your property.
(California General-B License: 1107538)
Kasper Vianna
Avorino Custom Home & ADU
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[email protected]
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