San Diego ADU Builders: Stop Chasing Projects. Start Owning Them.

San Diego’s (and California in general) ADU market is exploding. Every week, more homeowners wake up to the value of adding a backyard unit for rental income, increased equity and resell value, family living, or lifestyle flexibility. The demand is massive — and only growing larger! Of course you already know this.

But for builders and general contractors, that growth can come with headaches:

• Material delays that wreck timelines.

• Labor shortages that eat into profits.

• Unpredictable schedules that keep you chained to the phone instead of running your business.

• Razor-thin margins that make winning bids feel like losing battles.

Sound familiar?

Enter MOMO: The Partner That Changes the Game

At MOMO, we don’t just supply ADUs. We deliver luxury panelized homes designed to make you look like a rockstar to your clients while keeping your business profitable and your schedule sane.

Here’s how:

• Luxury, turnkey quality. Included in the price, every model comes with solid wood cabinets, premium appliances (Bosch & LG), and the option for solar panels. Every model also includes a stamped site plan for permit application. This isn’t cookie-cutter prefab — it’s panelized luxury excellence that sets you apart.

• Sure Foot Foundation. Our proprietary Surefoot foundation system is a concrete-free alternative that spreads load over a larger surface area, achieving higher load capacities faster and more cost-effectively. Designed to meet compliance requirements and adaptable to various soil conditions, it ensures a solid base for each and every build.

• Onsite Training. Our team offers hands-on training during the first build to ensure a smooth construction process.

• Customizable designs. Your clients want choices. With MOMO, they get flexibility without the chaos of redesigning from scratch. With models from as small as the Seed Studio at 428 sq ft, Alpen Mini (2BR 1BA) at 685 sq ft, to the Umbra XL (2BR 2BA) at 1,002 sq ft, we have options that meet your customers needs.

• Faster builds with less labor. Our cold-formed steel framing and precision panelization go up quickly and cleanly — saving you time, headaches, and crew stress.

• Clear, profitable pricing. Quote your customer with confidence: MOMO model cost + your installation labor + your margin.

That means you stay competitive, solvent, and profitable — without the endless cost overruns and material wild goose chases.

Why This Matters in San Diego

The San Diego ADU market is booming. Homeowners are searching for reliable builders who can deliver quickly, beautifully, and without drama. By becoming a MOMO partner, you position yourself as a preferred provider — the contractor with the luxury, speed, and certainty everyone else wishes they could offer.

When you’re backed by MOMO, you’re not chasing scraps of the market — you’re dominating it.

Smoke the Competition. Build Smarter. Earn More.

Stop wasting hours juggling delays and razor-thin bids. Start giving your clients luxury ADUs they rave about — while you pocket stronger margins and reclaim your schedule.

Click here to become a MOMO Partner today

KITSAP REGIONAL COORDINATING COUNCIL PRE-APPROVED ADU PLANS

The Kitsap Regional Coordinating Council has posted on their webpage they have begun work on coordinating for pre-approved ADUs plans for Kitsap County, as well as the cities of Bainbridge Island, Bremerton, Port Orchard and Poulsbo.

Kitsap Regional Coordinating Council Pre-Approved ADU plans

The Pre-Approved plans will ideally help speed up the planning, permitting and construction process so the applicants can use it as soon as possible.

I like this approach to add ADUs and help incentivize their utilization. Making them more approachable, like an online shopping process where you just click and the purchase is done and the item is on the way, makes sense.

It seems like four plans are available now, with an additional two more plan sets coming later.

I’d like to see one of those set plans be a 2 ADU unit, ideally stacked for those lots in Kitsap County UGAs (Urban Growth Areas) that allow up to two ADUs per lot. Some of the lots are constrained in footprint size, and building up is a great way to address this.

True Built Homes Shasta Model, which can be configured as a two story ADU.

While this is a step in the right direction for helping applicants utilize ADUs, I still feel strongly about cities, counties and governments using a tax abatement program for ADUs for a set period years, such as 5 years for one ADU, or 10 years for two ADUs. They could make the requirements for earning this abatement be something like the ADU has to be rented out at or below fair market value, and if that requirement is not met the remainder of the tax abatement time period is forfeit.

I am looking forward to seeing more density and value added from ADUs.

Unlocking the Potential of Accessory Dwelling Units to Address Housing and Financial Challenges

Accessory Dwelling Units (ADUs) represent a viable solution to the dual crises of housing affordability and housing supply shortages. By leveraging existing properties to create additional living spaces, ADUs can increase urban density usually without extensive new infrastructure. Furthermore, they offer homeowners financial benefits while addressing community housing needs. This post explores the challenges and opportunities of ADUs, reviews case studies such as Des Moines, Iowa, and provides actionable recommendations for policymakers to incentivize ADU development.

The Housing Crisis: A Call for Action

The United States faces a severe housing shortage, with a national deficit of 3.8 million units as of 2022 (National Association of Realtors). This shortage drives up costs, disproportionately affecting low- and middle-income households. ADUs—small, self-contained residential units located on the same lot as a primary residence—are uniquely positioned to address this crisis by:

1. Increasing housing supply within established neighborhoods.

2. Providing affordable housing options for tenants.

3. Generating supplemental income for homeowners.

Despite these benefits, barriers such as regulatory restrictions, high construction costs, and lack of homeowner awareness have limited the widespread adoption of ADUs.

Barriers to ADU Development

1. Regulatory Hurdles: Zoning laws often restrict the construction of ADUs by imposing minimum lot sizes, parking requirements, occupancy limits, or needing additional permits for their construction.

   • Example: Many municipalities still treat ADUs as non-conforming uses, requiring costly variances or additional permits.

2. High Upfront Costs: The average cost of building an ADU ranges from $100,000 to $250,000 (Urban Institute). Although some financial institutes are using some creative solutions to address this, financing options for homeowners are limited, further deterring potential builders.

3. Awareness and Education Gaps: Many property owners remain unaware of ADU policies and the financial incentives available to them from owning an ADU.

Case Study: Des Moines, Iowa

Des Moines’ innovative ADU program demonstrates how tax incentives can encourage property owners to embrace ADU development. Key features include:

• Tax Abatement: Property owners receive a tax break on the increased value of their property due to the ADU.

• Streamlined Permitting: A simplified approval process reduces administrative burdens and costs.

• Community Outreach: Workshops and educational campaigns help homeowners understand the benefits of building ADUs.

As a result, Des Moines has seen a significant increase in ADU construction, contributing to housing density and affordability.

Benefits of ADUs

1. Affordable Housing Supply: ADUs provide low-cost rental options, particularly in high-demand urban areas.

2. Financial Stability for Homeowners: Rental income from ADUs can help offset mortgage payments and provide financial security. Increased property value and resell value are also benefits.

3. Efficient Land Use: ADUs in some cases can utilize existing infrastructure, reducing the environmental and financial costs of sprawl.

4. Multigenerational Living: ADUs offer flexible housing options for families, allowing for close proximity while maintaining privacy.

Recommendations for Policymakers

To maximize the potential of ADUs, governments should look at implementing the following strategies, or some form of them:

1. Tax Incentives:

   • Offer property tax abatements for ADU construction, as seen in Des Moines, Iowa and other locations.

   • Provide income tax credits for rental income generated from ADUs.

2. Grants and Low-Interest Loans:

   • Establish grant programs for low- and middle-income homeowners to help offset construction costs.

   • Permitting agencies should refund or have grant money available for needed permits, or perhaps provide a tax break for the permit cost.

   • Partner with financial institutions to offer low-interest loans specifically for ADU projects.

3. Regulatory Reform:

   • Where feasible and needed, relax zoning restrictions to allow ADUs by right in residential zones.

   • Reduce or eliminate parking requirements for ADUs near public transit. This would need to be coupled with a focus on alternative modes of connectivity such as walking, biking and bus routes.

4. Educational Outreach:

   • Conduct workshops and informational campaigns to educate property owners about ADU benefits and available incentives. Partnerships with real estate agents to disseminate this information would be effective as well.

   • Mail brochures and fliers to home owners educating them about the opportunities. Canvasing to hand out these is also recommended when possible.

   • Develop online resources, including cost calculators and step-by-step guides for ADU construction.

5. Streamlined Permitting:

   • Create streamlined permitting processes, as needed, for ADU projects to reduce time and cost barriers.

   • Implement standardized design templates to simplify construction approvals. See the Seattle ADU page for example of pre-approved designed that help reduce the time to construction.

The Path Forward: Investing in ADUs for a Sustainable Future

ADUs present a scalable, cost-effective solution to address housing shortages while empowering private property owners. Government incentives such as tax breaks, grants, and educational programs can significantly accelerate ADU adoption, fostering a more equitable and sustainable housing market.

By adopting proven strategies and tailoring them to local contexts, policymakers can transform neighborhoods into vibrant, inclusive communities. Now is the time to act decisively, leveraging the potential of ADUs to create a brighter future for all.

References

1. National Association of Realtors (2022). “Housing Shortage and Its Impact on Affordability.”

2. Urban Institute (2021). “The Costs and Benefits of Accessory Dwelling Units.”

3. City of Des Moines (2023). “ADU Tax Abatement Program Overview.”

4. Terner Center for Housing Innovation (2022). “Regulatory Barriers to ADU Development.”

5. American Planning Association (2021). “Innovative Housing Solutions: Lessons from Global Cities.”