San Jose just became the first city in California to unlock a new kind of housing.
Under a new law, the South Bay city saw its first accessory dwelling unit, colloquially called an ADU, sold as a condo unit on an existing property this month. The unique transaction is the first time an ADU has been sold without an accompanying home in the state. This type of sale was previously illegal until Gov. Gavin Newsom signed a law in 2023 enabling standalone ADU purchases.
The two-bedroom, standalone home near downtown sold for $530,000. It has no homeowners association dues or shared utilities, and it has a separate entrance and private parking…