State ADU Law Sparks Discussion on Separate Backyard Home Sales

As backyard cottages continue to gain traction across Sacramento County neighborhoods, recent state legislation is opening the door for homeowners to separate their accessory dwelling units from primary houses and sell them independently.

Under Assembly Bill 1033, local jurisdictions can allow single-family parcels to convert into two-unit condominiums, enabling property owners to sell a backyard cottage without completing a traditional lot split. Real estate appraisers note that while the measure was created to expand starter home options amid high housing costs, the setup creates distinct financial hurdles, including complex appraisals, lending restrictions, and potential effects on the primary residence's market appeal.

Citrus Heights currently features a steady market for homes built with guest houses and detached suites. While the option exists under state frameworks, industry analysts anticipate that standalone sales will remain relatively rare until local mortgage programs and buyers grow more comfortable with shared parcel condominium models.