San Francisco has just passed a groundbreaking housing law that could reshape homeownership in the city. In an effort to combat the housing shortage and provide more affordable options, a new ordinance will allow homeowners to legally sell their Accessory Dwelling Units (ADUs)—commonly known as in-law units—as separate condominiums.
This change, signed into law by Mayor London Breed, marks a significant shift in the way San Franciscans can use and profit from their property. Previously, ADUs could be rented out but not sold independently. Now, homeowners who add ADUs to their properties—such as basement apartments or backyard cottages—can sell them off like individual condos.
Supporters of the law argue that it will encourage more homeowners to build ADUs, boosting the city’s housing stock without the need for large-scale development. For younger buyers or those priced out of traditional homes, these smaller units could offer an entry point into San Francisco’s challenging real estate market.
However, not everyone is on board. Critics worry that this could lead to the loss of affordable rental units and further gentrification, particularly in neighborhoods that are already under pressure from rising property values.
Still, with housing affordability at a crisis point, city officials see this as a creative, low-impact solution to increase ownership opportunities while making better use of existing residential land.
“We need every tool we can get to create housing and give people a path to ownership,” said Supervisor Myrna Melgar, one of the law’s key backers.
Time will tell whether this bold move pays off. For now, it’s a clear signal that San Francisco is willing to rethink housing from the ground up—literally.
Source:
Conte, A. (2025, July 11). San Francisco law will let homeowners sell their in‑law units as condos. SFGate. Retrieved July 15, 2025, from https://www.sfgate.com/realestate/article/san-francisco-law-will-let-homeowners-sell-their-20762012.php