The Pioneers: Cities That Said Yes to AB 1033
While most California cities are still studying AB 1033, a handful of forward-thinking jurisdictions have already passed local ordinances allowing homeowners to sell their ADUs as separate condominium units.
These early adopters are creating a roadmap that the rest of the state — including Los Angeles, Orange County, and the Inland Empire — will follow.
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West Sacramento: The First Mover
What Happened
West Sacramento became one of the very first cities in California to adopt an AB 1033 ordinance, positioning itself as a leader in innovative housing policy.
Why West Sacramento Moved Fast
- Housing shortage: Like most California cities, West Sacramento faces significant housing demand
- Progressive city leadership: The city council has been consistently pro-housing
- Proximity to Sacramento: As the state capital's neighbor, there's political incentive to lead on housing policy
- Smaller city advantage: With a population under 60,000, the city could move through the bureaucratic process quickly
What It Means for Homeowners
West Sacramento homeowners can now:
- Build an ADU on their property
- File a condominium plan with the county
- Create CC&Rs for the shared property
- Sell the ADU independently with its own deed
Early Market Data
While the market is still young, initial interest has been strong:
- Multiple homeowners have begun the condo conversion process
- Real estate agents report buyer inquiries about ADU condos
- Estimated ADU condo prices: $250,000–$350,000 (depending on size and location)
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San Jose: The Tech Capital Joins In
What Happened
San Jose, the heart of Silicon Valley and California's third-largest city, has moved to adopt AB 1033 — making it the largest city to do so early on.
Why San Jose's Adoption Matters
San Jose is a bellwether city. When a major metropolitan area with over 1 million residents adopts AB 1033, it sends a powerful signal to other large cities — including Los Angeles.
The San Jose Market
- Median home price: $1.3 million+ — Among the most expensive in the country
- ADU construction boom: San Jose has been a national leader in ADU permits
- Estimated ADU condo prices: $400,000–$700,000+ — Even at these prices, significantly more affordable than a traditional home
- Strong buyer demand: Tech workers, young professionals, and essential workers need affordable entry points
What We Can Learn
San Jose's experience shows that:
- The condo conversion process works — It's bureaucratic but manageable
- Buyer demand exists — People are eager for affordable homeownership options
- Property values aren't negatively affected — Concerns that ADU condos would depress neighborhood values have not materialized
- The process creates a template — Other cities can copy San Jose's ordinance language
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Other Early Adopters
Goleta (Santa Barbara County)
- Small coastal city that has embraced AB 1033
- ADU condos near UCSB could command premium prices
- Progressive housing policies align with the university community
Sacramento
- The state capital has been actively working on AB 1033 adoption
- As the seat of state government, there's political pressure to lead by example
- Large, diverse housing market with strong demand
Oakland
- Another Bay Area city moving toward AB 1033 adoption
- Extremely expensive housing market makes ADU condos attractive
- Strong existing ADU infrastructure
Santa Cruz
- College town with severe housing shortage
- ADU condos near UCSC would fill a critical gap
- Relatively small size allows for quick adoption
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Lessons from Early Adopters
After watching the first wave of AB 1033 cities, here's what we've learned:
1. The Process Is Manageable But Not Simple
Converting an ADU to a condo requires:
- A licensed surveyor to create the condo map
- A real estate attorney to draft CC&Rs
- County recorder filing and fees
- Typically 3–6 months from start to recorded condo plan
Conversion scope: Surveying, legal, and filing requirements vary; request a property-specific written estimate.
2. Design Matters Enormously
ADUs built with separate sale in mind convert smoothly. ADUs built without considering AB 1033 often need retrofitting:
| Feature | "AB 1033 Ready" | Needs Retrofitting |
|---------|----------------|--------------------|
| Entrance | Separate, street-facing | Through main house or shared |
| Utilities | Independent meters | Shared with main house |
| Parking | Dedicated space | Shared/unclear |
| Outdoor space | Private patio/yard | Shared yard only |
| Sound insulation | STC 50+ | Standard construction |
Retrofitting cost if not built AB 1033 ready: $15,000–$40,000+
3. Pricing Has Been Strong
Early ADU condo sales have met or exceeded expectations:
- Buyers are willing to pay a premium for standalone homeownership
- Condos with private outdoor space command the highest prices
- 2 bed/2 bath units are the most marketable configuration
- Modern finishes and energy efficiency drive buyer interest
4. Mortgage Availability Is Improving
Initially, some lenders were unfamiliar with ADU condos. That's changing:
- Conventional mortgages are now available for ADU condos in adopted cities
- FHA and VA loans are being evaluated for these units
- Down payment requirements are standard (3.5%–20%)
- Interest rates are the same as traditional condos
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What This Means for Southern California
The early adopter experience tells us three things about what to expect when LA, OC, and IE cities adopt AB 1033:
1. Demand Will Be Massive
Southern California's housing crisis is significantly worse than the Bay Area's in terms of raw numbers. When LA and OC adopt, expect:
- Immediate interest from thousands of ADU owners
- Strong buyer demand from priced-out families
- Significant media attention driving awareness
2. The First Movers Win
Homeowners who have their ADUs built and AB 1033 ready when the ordinance passes will be first to market. In the early days, there will be more buyers than available units — meaning first movers get premium prices.
3. Build Now, Sell Later
The smart strategy is clear:
- Build your ADU now
- Rent it out for income while you wait ($2,000–$3,000+/month)
- When AB 1033 arrives in your city, you have the option to sell
- Early sellers in adopted cities have gotten strong prices
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Use Our Calculator to See Your Numbers
Whether you're planning to rent, sell, or both — enter your zip code to see what your ADU is worth:
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Ready to Build Your AB 1033-Ready ADU?
Every Vision ADU project is built with separate sale in mind — from day one. We don't charge extra for AB 1033 readiness because it's built into our standard design and construction process:
- Separate entrances on every unit
- Independent utility connections
- Premium finishes that maximize resale value
- Full permits and inspections documented for future conversion
- Sound insulation between units
The homeowners building now will be the ones profiting first when AB 1033 comes to Southern California.
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Vision ADU has completed over 75 ADUs of all types across Southern California. Book a free consultation to discuss your ADU options, or call (866) 668-4264.
Related Vision ADU Resources
- The AB 1033 Design Checklist: 15 Features That Maximize Your ADU's Resale Value
- The Complete Guide to Building an ADU in Long Beach, California (2026)
- Building an ADU in Anaheim: Regulations, Costs, and Everything You Need to Know (2026)
- ADU Construction in Santa Ana: Your Complete 2026 Guide to Permits, Costs, and Regulations
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