The City of Tempe is embracing a bold new strategy to tackle housing affordability and meet the needs of a changing population: fast-tracking the construction of “casitas,” also known as accessory dwelling units (ADUs).
Key Takeaways:
- Tempe to streamline ADU approvals: The city is working to simplify permitting and zoning for backyard casitas to allow homeowners to build more easily.
- Affordable housing boost: These small homes provide a lower-cost option for renters and an opportunity for homeowners to generate passive income.
- Homeowner incentives: Grants of up to $20,000 will be available to qualified residents, prioritizing low-income homeowners and those building for multigenerational housing.
- Pre-approved plans in the works: Tempe will offer free, pre-approved casita blueprints to save time and cost.
- City Council commitment: The casita initiative passed unanimously, reinforcing Tempe’s dedication to housing expansion and affordability.
- High investor relevance: As Maricopa County sees increasing rental demand, especially for detached homes, casitas offer a powerful ROI play for landlords.
Why This Matters to Investors:
Tempe’s policy shift aligns perfectly with the trend of “missing middle” housing solutions. For investors in Maricopa or Pinal County:
- Casitas can boost NOI with minimal footprint.
- They allow long-term rental or short-term flexibility.
- Government support like grants and pre-approvals can lower build costs significantly.