During a recent government meeting, officials discussed the current state of Accessory Dwelling Units (ADUs) and affordable housing initiatives in Oakland, revealing significant trends and challenges in the local housing market.

The meeting highlighted that in 2023, Oakland saw a total of 304 ADUs entitled, with 219 permitted and 242 completed. While the number of ADUs permitted was below the average for the previous five years, the completion rate was the highest recorded during that period. This indicates a shift in focus towards finalizing existing projects rather than initiating new ones. The city has been reporting ADUs as market-rate units to the state, but recent studies suggest that many of these units qualify as affordable housing by design, with an average rent of $1,112, which aligns with low-income housing criteria.

However, the meeting underscored a concerning trend: the number of permitted units in 2023 represented a dramatic decline—58% from 2022 and 83% from the peak in 2018. This downturn is attributed to a challenging financial environment for housing developers, exacerbated by rising construction costs and high interest rates. Notably, multi-family housing projects experienced the most significant drop, with ADUs now comprising 28% of all permitted units, up from 15% in 2022.

In terms of affordable housing preservation, officials reported that 2023 saw the production and preservation of fewer units than any year since 2018. The city plans to invest an additional $22 million in affordable housing through Measure U funding, building on the $88 million committed in 2023. This funding is aimed at supporting various housing initiatives, including the Rapid Response Homeless Housing program, which seeks to create quick-build housing solutions for the homeless.

The meeting also addressed demographic data regarding residents in affordable housing. Approximately 48% of residents in subsidized housing identified as Black, a demographic that is disproportionately represented among the unhoused population in Oakland.

Looking ahead, the city is preparing for a potential $20 billion regional bond for affordable housing, which could allocate $765 million to Oakland. This funding would focus on both the production of new affordable homes and the preservation of existing units. Public engagement efforts are underway to ensure community input on how these funds will be utilized.

As the city navigates these complex housing challenges, officials emphasized the importance of continued investment and strategic planning to meet the growing demand for affordable housing in Oakland.