California's AB 1033

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The California housing market has long been grappling with rising home prices, presenting a major challenge for many residents aspiring to become homeowners. However, in October 2023, California enacted Assembly Bill 1033 (AB 1033) poised to revolutionize the homeownership landscape in the state. Join us as we delve into the intricacies of AB 1033, exploring its potential benefits for homeowners, prospective buyers, and the broader housing market.

Let's Talk About California's Housing Crisis

California boasts stunning landscapes, beautiful coastlines, and fantastic weather. Nevertheless, these fantastic attributes also come with a steep housing price tag. The demand for homes has reached unprecedented levels, resulting in some of the highest real estate prices across the nation. This has turned homeownership into a difficult goal to attain, especially in major metropolitan areas like Los Angeles and the Bay Area. Furthermore, the housing crisis has given rise to overcrowded rental markets, sky-high rents, and even an alarming increase in homelessness.

The Call for Innovative Solutions

As the housing crisis escalates, California's lawmakers have been actively seeking innovative solutions. One noteworthy approach that has drawn significant attention is the use of Accessory Dwelling Units (ADUs). ADUs, also known as "granny flats" or "in-law units," are those extra housing units you find on a residential property. These versatile units can serve as independent residences, guesthouses, or rental properties, offering means to increase housing density without dramatically changing neighborhoods.

However, ADUs have faced their own set of challenges. Traditional regulations have made it difficult to sell ADUs independently, as they are typically bundled with the main house, making them less flexible and marketable. The tide turned with the advent of AB 1033.

AB 1033: Transforming the Landscape

AB 1033, introduced and passed in 2023, stands as a game-changer for ADUs in California. This legislation empowers homeowners to sell ADUs as separate condominiums, removing the old restrictions that had hindered their sales. This revolutionary change opens a world of new homeownership opportunities.

How AB 1033 Works

AB 1033 simplifies the complex process of selling ADUs as condominiums, making homeownership more accessible. It involves legally separating the ADU from the main house, creating specific rules stipulated in a condo declaration, sharing responsibilities with other property owners, and maintaining order through condo associations. Essentially, it is a transformative legislation that renders homeownership more accessible.

Benefits of AB 1033

AB 1033 presents several noteworthy advantages for California's housing market and its residents. It enhances affordability by allowing the separate sale of ADUs, catering to budget-conscious homebuyers. Moreover, it offers homeowners an avenue to generate supplementary income by renting out their ADUs, potentially assisting in covering mortgage costs. This legislation also promotes responsible housing density, prompting the efficient use of existing housing stock without compromising natural landscapes. Significantly, it can enhance property values by affording homeowners a unique selling point that can attract a broader range of potential buyers.

Beyond the housing sector, AB 1033 has the potential to stimulate economic growth. By promoting construction activity related to ADUs and creating employment opportunities, it can contribute to local economic development. In essence, AB 1033 brings a harmonious blend of economic and housing benefits to California.


AB 1033 represents a pivotal shift in addressing California's housing crisis. It's about providing more individuals with the opportunity to own a piece of the Golden State. This legislation not only empowers homeowners to generate additional income but presents solutions to California’s housing challenges while boosting the economy. Although there are obstacles to overcome, AB 1033 has the utmost potential to reinvent the real estate landscape and make homeownership attainable for a larger segment of the population. 


We offer the highest level of expertise and service with integrity. Jeff Biebuyck & Dana Olmes are Luxury Homes Specialists in Calabasas with a particular expertise in representing residential estate properties throughout the West San Fernando Valley, Conejo Valley, Malibu and Greater Los Angeles area. As consummate professionals, Jeff Biebuyck & Dana Olmes provide their clients with the highest level of service to reach their unique real estate goals.

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