San Diego ADU permits more than doubled in 2025. The city issued 1,122 accessory dwelling unit permits last year, up from 538 in 2024. That’s a 108.6% jump in a single year, and it didn’t happen evenly across the city. Some neighborhoods are driving this boom far more than others.
Whether you’re a homeowner wondering if building an ADU makes sense, a buyer looking for neighborhoods where people are investing, or an investor scouting for rental income opportunities, this data tells a story worth paying attention to. Here’s what the numbers say, neighborhood by neighborhood.
San Diego ADU Permits More Than Doubled in a Single Year
First, some quick context. An ADU, or accessory dwelling unit, is a smaller secondary home built on the same lot as a primary residence. Think backyard cottages, converted garages, or small detached units. They come in all shapes, from 400-square-foot studios to full 1,200-square-foot homes with separate entrances, kitchens, and bathrooms.
San Diego’s ADU numbers have been climbing fast. In 2023, the city issued just 77 ADU permits. By 2024, that number jumped to 538. And in 2025, it hit 1,122. The early 2026 pace (241 permits in just January and February) suggests this year could climb even higher.
Why the surge? A few things are working together. California’s ADU laws (including AB 2221 and SB 897) have made it significantly easier to get a permit approved. The city can no longer block most ADU applications that meet basic zoning requirements. Meanwhile, San Diego’s tight housing market and strong rental demand make the financial case for building one hard to ignore.
But the real story isn’t the citywide total. It’s where these ADUs are going up.
Which San Diego Neighborhoods Have the Most ADU Permit Activity?
The ADU boom isn’t spread evenly. A handful of neighborhoods are pulling way more than their share of permits, and the mix of communities on this list might surprise you.
The Top Neighborhoods for ADU Permits in San Diego
Since 2023, the Encanto and Southeastern San Diego area leads the city with 85 ADU permits. College Area and Rolando come in second with 77. Clairemont Mesa and La Jolla are tied for third with 57 each.
Here’s the full top 11:
| Rank | Neighborhood | ADU Permits |
|---|---|---|
| 1 | Encanto / Southeastern San Diego | 85 |
| 2 | College Area / Rolando | 77 |
| 3 | Clairemont Mesa | 57 |
| 4 | La Jolla | 57 |
| 5 | Barrio Logan / Logan Heights | 56 |
| 6 | Linda Vista / Clairemont | 50 |
| 7 | City Heights | 49 |
| 8 | North Park / University Heights | 41 |
| 9 | Pacific Beach | 39 |
| 10 | Normal Heights / Kensington | 36 |
| 11 | Hillcrest / Uptown | 36 |
What’s interesting is the mix. You’ve got more affordable neighborhoods like Encanto, City Heights, and Barrio Logan sitting right alongside high-value coastal areas like La Jolla and Pacific Beach. The reasons people are building ADUs vary by neighborhood, but the activity itself is broad.
The 2025 Standouts
Looking at just 2025 (the most recent full year of data), College Area and Rolando led the city with 21 ADU permits issued. Clairemont Mesa and La Jolla tied for second with 19 each. Normal Heights and Kensington pulled in 11, and Encanto and Southeastern San Diego also had 11.
Keep in mind: these are issued permits, meaning actual approved construction, not just applications sitting in a queue. When you see 21 ADU permits issued in College Area in a single year, that’s 21 new homes being built in backyards and on side lots right now.
Photo by Bob Osias on Unsplash
What’s Driving the ADU Boom in These San Diego Neighborhoods?
The “why” is different depending on where you look.
Lot size matters. Clairemont, College Area, and Encanto are packed with mid-century ranch-style homes sitting on 6,000 to 8,000 square foot lots. That’s enough room for a detached ADU without cramming the yard. Compare that to a neighborhood like Hillcrest, where smaller lots and older multifamily buildings make ADU construction trickier, and you can see why Clairemont has nearly double the ADU permits.
The rental income math works. In neighborhoods like City Heights and Barrio Logan, a permitted ADU can generate $1,500 to $2,200 per month in rental income. For many homeowners, that changes everything about their monthly budget. It can mean the difference between struggling with a mortgage and living comfortably.
Multigenerational living is a real factor. In La Jolla and Normal Heights/Kensington, a significant share of ADU construction is driven by homeowners building space for aging parents or adult children. The cost of a separate home in La Jolla makes a backyard unit an appealing alternative.
State law cleared the path. California’s recent ADU legislation essentially streamlined the approval process. If your project meets the basic setback, height, and size requirements, the city has to approve it. That removed a huge barrier that used to slow things down for years.
Don’t Forget Junior ADUs: San Diego’s Quieter Trend
While ADUs get most of the attention, there’s a smaller, quieter trend worth knowing about: Junior ADUs, or JADUs.
A JADU is a smaller unit (under 500 square feet) that’s created by converting existing space within the main home, like turning a spare bedroom or attached garage into a self-contained living area. They’re cheaper and faster to build than a full ADU because you’re working within the existing structure.
Since 2023, San Diego has issued 374 JADU permits. That’s a fraction of the 4,346 full ADU permits, but it’s a growing option, especially for homeowners who want rental income without the cost of new construction. Clairemont Mesa leads the city with 15 JADU permits, followed by City Heights and Encanto, each with 13.
If you’re a homeowner exploring your options, a JADU might be the lower-cost entry point worth considering.
What San Diego ADU Activity Means If You’re Buying, Selling, or Investing
All of this data is interesting, but what does it actually mean for you? It depends on where you sit.
For Homeowners
If you own a home in one of these top neighborhoods, your neighbors are already building. That’s a signal. It means homeowners around you are investing in the area and betting on its long-term value. It also means the permit process in your neighborhood is well-trodden, which can make your own ADU project smoother.
Worth thinking about: a permitted ADU doesn’t just add rental income. It adds to your property value. A home with an existing, permitted ADU is worth more than the same home without one.
For Buyers
ADU activity is a positive signal when you’re evaluating neighborhoods. Areas where homeowners are putting money into building new units are areas where people believe in the future of the community. If you’re shopping in Clairemont, North Park, or College Area, the ADU numbers confirm what you probably already feel on the ground: these are neighborhoods on the move.
Also keep an eye out for properties that already have a permitted ADU. That’s built-in rental income from day one, which can significantly offset your mortgage.
For Investors
The neighborhoods topping the ADU list are also some of the best places to look at the rental income math. Encanto, City Heights, College Area, and Barrio Logan have the right combination of lot sizes, property prices, and rental demand to make ADU investments pencil out. If you buy a property with room for an ADU, you’re essentially buying two income streams on one lot.
And if managing a rental isn’t something you want to take on yourself, that’s something a property management team can handle. Miguel’s team also offers tenant placement services to help you find qualified renters quickly.
How to Look Up ADU Permits in Your San Diego Neighborhood
All of this data is public and free. The City of San Diego publishes permit records through its Open Data Portal at data.sandiego.gov. You can search for development permits by address, look up what’s been approved in your area, and see what kind of construction is happening around you.
It’s a useful tool whether you’re doing due diligence before buying a home, checking what your neighbors are building, or researching a neighborhood you’re thinking about investing in.
Thinking About an ADU? Let’s Talk.
Whether you’re curious about what ADU activity means for your neighborhood, wondering if your property is a good candidate for one, or looking for a home that already has a permitted unit, Miguel Chairez is always happy to talk it through. He’s been helping San Diego homeowners, buyers, and investors navigate these decisions for over 20 years.
Reach out anytime at 619.253.3333 or [email protected].