Los Angeles and AB 1033: The Biggest ADU Market in America
Los Angeles is the largest ADU market in the entire United States. The city issued over 25,000 ADU permits between 2017 and 2024 — more than any other city in the country. So when it comes to AB 1033, the question isn't if LA will adopt it, but when.
And the signs are pointing to soon.
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Where Does LA Stand on AB 1033?
As of early 2025, the City of Los Angeles has not yet formally adopted an AB 1033 ordinance, but here's what's happening behind the scenes:
City Council Activity
- Multiple council members have expressed public support for AB 1033 adoption
- The LA Department of City Planning has been directed to study the implications and draft a local ordinance
- Housing advocacy groups have been lobbying hard for adoption, citing the city's ongoing affordability crisis
- The mayor's office has signaled support for policies that expand housing options
Why It's Taking Time
LA is a massive city with complex bureaucracy. Unlike smaller cities that can adopt an ordinance in a single council vote, LA's process involves:
- Department of City Planning analysis and recommendation
- Planning Commission review
- City Council committee hearing
- Full City Council vote
- Mayor's signature
This multi-step process typically takes 6–12 months from initiation to final adoption.
Realistic Timeline
Based on the current pace of activity, most housing policy experts expect LA to adopt AB 1033 sometime in late 2025 or early 2026. Some council districts may push for expedited adoption given the housing emergency declaration.
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What AB 1033 Means for LA Homeowners
When LA adopts AB 1033, the impact will be enormous:
The Numbers
- 25,000+ existing ADU permits — many of these units could potentially be converted to condos
- Median home price in LA: $850,000+ — ADU condos at $350,000–$500,000 would create massive affordable housing inventory
- Average ADU rental income in LA: $1,800–$2,800/month — owners will need to weigh rent vs. sell decisions
Neighborhoods Where AB 1033 Will Have the Biggest Impact
High-Value Areas (ADU condos could sell for $450,000+):
- Santa Monica
- Beverly Hills adjacent
- West Hollywood adjacent
- Silver Lake / Echo Park / Los Feliz
- Manhattan Beach / Hermosa Beach
- Pasadena / South Pasadena
Mid-Market Areas (ADU condos at $300,000–$450,000):
- Culver City
- Studio City / Sherman Oaks
- Eagle Rock / Highland Park
- Glendale / Burbank
- Long Beach (east side)
- Torrance / Redondo Beach
Affordable Entry Points (ADU condos at $200,000–$300,000):
- South LA / Inglewood
- Compton / Watts
- East LA / El Monte
- Van Nuys / Panorama City
- Hawthorne / Gardena
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How to Prepare Your LA ADU for AB 1033
Don't wait for the ordinance to pass. Build your ADU now with separate sale in mind:
Design for Independence
Your ADU should function as a completely standalone unit:
- Separate street-facing entrance — not through the main house or a shared hallway
- Private outdoor space — even a small patio or fenced yard area
- Independent utilities — separate electric meter, gas meter, and water connection
- Dedicated parking — at least one off-street parking space
- Sound insulation — STC (Sound Transmission Class) rating of 50+ between units
Build for Maximum Resale Value
The features that get the highest resale price as a condo:
- 2 bedrooms / 2 bathrooms (the most marketable unit type)
- Full-size kitchen with quality appliances (not a kitchenette)
- In-unit washer/dryer
- Central HVAC (not just a wall unit)
- 9-foot or vaulted ceilings
- Modern finishes: quartz counters, tile bathrooms, LVP or hardwood floors
- Smart home ready: pre-wired for doorbell camera, smart thermostat, smart locks
Get Permits Done Right
When LA does adopt AB 1033, units with clean permit histories will convert smoothly. Units with permit issues or unpermitted work will face delays and potentially costly corrections.
At Vision ADU, every project is fully permitted with the City of LA, inspected at every stage, and documented for future sale or conversion.
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The Financial Opportunity in LA
Let's look at what AB 1033 could mean for a typical LA homeowner:
Scenario: 2 Bed / 2 Bath ADU in a Mid-Market LA Neighborhood
| Item | Amount |
|------|--------|
| Construction cost | Property-specific written estimate |
| Permits & fees | $8,000–$15,000 |
| Total investment | Property-specific written estimate |
| Estimated condo sale price | $350,000–$450,000 |
| Net profit from sale | $115,000–$262,000 |
Or Rent First, Then Sell
| Strategy | Year 1–3 Income | Then Sell For | Total Return |
|----------|----------------|---------------|-------------|
| Build & rent 3 years, then sell | $72,000–$100,800 | $375,000–$475,000 | $447,000–$575,800 |
| Build & sell immediately | $0 | $350,000–$450,000 | $350,000–$450,000 |
Renting first gives you cash flow while property values continue rising, then you sell at a higher price. This is the strategy many financial advisors recommend.
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Use Our Calculator to Estimate Your ADU's Value
Enter your LA zip code below to see what your ADU could be worth — both as a rental property and as a standalone condo sale under AB 1033:
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What to Do Right Now
- Book a free consultation — We'll assess your property and design an AB 1033-ready ADU
- Start the permit process — LA permits take 3–6 months; get ahead of the rush
- Build with separate sale in mind — Every Vision ADU is designed to maximize both rental income and resale value
- Contact your council member — Express support for AB 1033 adoption to help accelerate the process
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Vision ADU is an owner-led, CSLB-licensed ADU builder serving Los Angeles, rated 5.0 stars on Google and ranked in the top 2% of California contractors by BuildZoom. Every unit we build is AB 1033 ready — designed for both rental income today and standalone condo sale tomorrow. Call (866) 668-4264 or book your free consultation online.
Related Vision ADU Resources
- AB 1033 in the Inland Empire: ADU Condo Sales in Riverside, San Bernardino, Ontario & Beyond
- These California Cities Already Allow You to Sell Your ADU — AB 1033 Early Adopters
- Rent or Sell Your ADU? The Complete Financial Comparison Under AB 1033
- The AB 1033 Design Checklist: 15 Features That Maximize Your ADU's Resale Value
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