Backyard casitas gaining traction; Arizona legislators seek to take concept statewide

Backyard casitas gaining traction; Arizona legislators seek to take concept statewide

By Angela Gonzales

On the heels of a Phoenix City Council nod to allow homeowners to build accessory dwelling units in their backyards, the Arizona Legislature may take the concept statewide.

Sen. Anna Hernandez, D-District 24, sponsored SB 1415 to allow casitas to be built in backyards. The bill passed committee last week and is headed to the Senate floor. Also passing committee in the House is HB 2299, introduced by Rep. Lorena Austin, D-District 9, to allow ADUs across the state.

Both ADU bills could be voted on as early as this week, said Tom Mulhern, founder of Phoenix-based AzADU LLC.

His new company handles the entire process of putting an ADU in a backyard, including designing, securing permits from the city and building.

Pat Moroney, also a co-founder, is a veteran homebuilder who has served as division president for several large homebuilders, including Meritage Homes, New Home Co., Standard Pacific Homes, and Journey Homes/Taylor Woodrow Homes.

"If cities around the state are going to allow it, then there's no doubt it's positive for expanding affordable housing, which is what they're meant to do," Moroney said. "For our business, it certainly will be a big factor for us."

Luke Bevans, another co-founder, said the ability to build ADUs statewide will make a huge impact on the affordable housing crisis in Arizona.

While the ADUs can be rented out to customers, most families use them to bring a family member onto the property — generational housing, Bevans said.

"If I were to move my mother-in-law to the backyard, my mother-in-law is out of the rental pool, freeing up another unit for somebody else," Bevans said. "We think once other municipalities see the impact this makes, it's a no-brainer for the state to piggyback on this ordinance."

The newly created AzADU has five plans that are permit ready, ranging from 480 square feet to 784 square feet and starting in the $130,000s.

With the median price for homebuyers in the $430,000 range, it's just not obtainable for a lot of families, Bevans said.

"ADUs make a lot of sense for first-time newlyweds, in-laws or someone looking to have independent living without having to go out in the market and figure out how to obtain a mortgage for that amount," he said.

Moroney, who worked in the homebuilding industry in California 30 years ago, remembers when ADUs emerged in California.

"Here people scratch their heads and ask, 'What's an ADU?' It will be common lingo in the next 20 years," Mulhern said.

Mulhern said his team plans to build statewide if legislation clears, but for now is focusing on serving metro Phoenix.

Another Valley company sees uptick in ADU interest

Zander Diamont and Jared Amzallag started Minimal Living Concepts LLC in January 2021, and have already sold more than 80 tiny homes in various municipalities that had already allowed these backyard dwellings, including Scottsdale and Paradise Valley.

They also handle the whole process, from design to permitting to construction.

With Phoenix allowing ADUs, more people are more aware of the possibilities of adding them, said Diamont.

"We do about 40 projects a year," he said. "We've got 15 under construction right now. We're having 10 to 25 calls with people a week."

They agreed that multigenerational housing is the No. 1 reason homeowners are building the units in their backyards.

"For us, it has been very fulfilling," Diamont said. "It's cool to see families coming back together. The culture in the U.S. is families moving away from each other. A lot of people are coming back to an older way of living. It keeps the family close."

A look at Minimal Living Concept Accessory Dwelling Units.

Minimal Living Concepts homes average 575 square feet and start at $175,000.

Diamont said he's starting to see more interest in luxury units ranging between 2,500 and 5,000 square feet.

It's too soon for price points for those products, Amzallag said.

Multigenerational living is catching on with other homebuilders, who are building single-family homes with attached units with their own separate entrances and garages. Mortgage interest rates hovering near 7% also are causing homeowners to consider this type of housing concept. Miami-based Lennar Corp. (NYSE: LEN) and Newport Beach, Dallas-based Landsea Homes Corp.