Buying a Home with Built-In Investment Opportunity: Unpacking California’s New ADU Law for the Greater Palm Springs Area

By: Brad Greiner, CEO of Open Air Homes and OpenAiRE Brokerage

OpenAiRE is keenly observing the new frontier of real estate in the Greater Palm Springs area, especially in light of California’s Assembly Bill 1033 which paves the way for an innovative take on property usage and ownership. The LA Times had a great recent article about Assembly Bill 1033 for California we recommend you read, and this blog begins to lay out some opportunities we see coming down the pipeline in California with the adoption of this Bill. 


Understanding ADUs in the Desert Landscape

Accessory Dwelling Units (ADUs), traditionally used for rentals and known for their space-efficient designs, could bring a unique twist to the expansive and diverse lots of the Greater Palm Springs area. With a tradition of valuing larger, more private living spaces, the community’s reaction to Bill 1033—which encourages a more condensed use of land—poses an intriguing question about the future landscape of local real estate.


The Potential Impact of Assembly Bill 1033

Assembly Bill 1033, introduced by Assemblyman Phil Ting, extends beyond the possibility of additional rental income for homeowners. It breaks new ground by allowing the sale of ADUs as separate entities, much like condominiums, offering a fresh avenue towards homeownership, particularly for first-time buyers in an escalating market.


Local Reception and Anticipated Trends

The Greater Palm Springs cities, known for their spaciousness and luxury, are at a crossroads. Will they embrace Bill 1033, integrating more diverse housing options and potentially spurring development in cities like Desert Hot Springs? Or will the majority uphold a “Not In My Back Yard” (NIMBY) stance, prioritizing the existing character of their communities? 


The ADU Advantage: Dual Ownership and Mixed Housing

This legislation could revolutionize the concept of property investment in the area, allowing owners to sell a portion of their property—an ADU—without selling their primary residence. It offers a sustainable model that aligns with the financial and environmental ethos of a new generation inclined towards the “Tiny Home” movement and more conscious living practices.


OpenAiRE’s Vision for Greater Palm Springs Property Owners

For those in Greater Palm Springs, AB 1033 could represent a strategic investment opportunity. Homeowners might capitalize on their larger lots by adding an ADU, then selling it to combat the rising costs of homeownership. This initiative aligns with a more eco-friendly approach to living and can serve the dual purpose of fostering community diversity while maintaining the beloved spaciousness of the area.

OpenAiRE encourages prospective buyers and current homeowners to consider the long-term implications of AB 1033. It’s not merely about the introduction of new housing stock but about shaping the socio-economic fabric of the region. We’re here to guide you through these evolving opportunities and help you navigate a path that suits both your lifestyle aspirations and investment goals in the Greater Palm Springs area.