Los Angeles has always had a knack for reinvention. From forgotten warehouses turned art galleries to mid-century bungalows transformed into sleek modern oases, this city knows how to make the most of every square foot. The latest reinvention trend? Accessory Dwelling Units, or ADUs—those small but mighty backyard homes changing the landscape (and value) of properties all over LA.
What Exactly Is an ADU?
An ADU—sometimes called a guest house, granny flat, or casita—is a fully independent living space built on the same lot as an existing home. It can be attached to the main house, tucked above a garage, or stand-alone at the back of the yard. Think: mini-home, major potential.
California’s streamlined regulations over the past few years have made it dramatically easier to build ADUs. Cities like Los Angeles have fast-tracked approvals, and financing options have expanded—making what once felt like a dream project now surprisingly doable.
Why Everyone’s Talking About Them
The appeal of ADUs goes far beyond extra space. Homeowners are discovering they can:
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Generate rental income — A well-designed ADU can bring in steady monthly rent, offsetting mortgage costs.
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Create multigenerational living — Perfect for aging parents, adult children, or anyone who wants to stay close but maintain independence.
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Boost property value — Adding an ADU can significantly increase resale potential and broaden your buyer pool.
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Expand flexibility — Whether you need a home office, studio, or guest retreat, an ADU can evolve with your life.
Designing Small, Living Large
Because space is limited, great ADU design is all about maximizing efficiency without sacrificing comfort or style. Natural light, thoughtful storage, and a seamless indoor-outdoor flow make even 400 square feet feel open and inviting. Many homeowners are mirroring the look and materials of the main house, creating a cohesive, polished property that feels intentionally planned—not piecemealed.
A Smart Move in a Tight Market
With rising home prices and limited inventory, ADUs are a clever way to add housing options in desirable neighborhoods without leaving your own backyard. From Venice to Westwood, savvy homeowners are turning underused space into high-value living areas that can serve as both investment and lifestyle upgrade.
Ready to Explore the Possibilities?
If you’ve ever looked out at your backyard and wondered, Could I put something back there?—you’re not alone. The ADU boom is just getting started, and opportunities abound.
Thinking of building—or buying—a home with an ADU?
The Bellet/Grakal/Glick team can help you find properties that are ADU-ready or connect you with experts who can guide your build from idea to income.
Let’s talk about turning your backyard into your next best investment.
