Newark city officials are taking significant steps to address the housing crisis by promoting the construction of accessory dwelling units (ADUs). During the recent Planning Commission meeting, it was highlighted that California's high housing costs necessitate innovative solutions to increase affordable housing availability. The city is actively working to make the construction of ADUs more accessible and efficient for homeowners.

ADUs, which include various forms such as granny flats and backyard cottages, have gained popularity as a cost-effective housing option. The average cost to build an ADU is approximately $150,000, significantly lower than the $480,000 required for a subsidized unit in a multifamily building. This affordability has led to a surge in ADU permits, with Newark issuing 27 permits in 2025 alone, nearing last year's record of 29 permits with a quarter still remaining in the year.

The city aims to construct a total of 160 ADUs by 2031, with 39 already completed since 2023. To facilitate this growth, Newark is updating its ADU ordinance to comply with evolving state laws, which include provisions for increased ADU allowances on multifamily lots and height regulations near transit stops. Additionally, the city is developing incentives to encourage ADU construction, such as adjustments to height allowances and reductions in impact fees.

To further support homeowners, Newark has partnered with Alameda County to launch the Alameda County ADU Resource Center, providing essential resources like a guidebook and cost assessment tools. A preapproved ADU program is also in place, streamlining the permitting process with ready-made architectural plans.

As Newark continues to enhance its ADU program, officials are optimistic about meeting and potentially exceeding housing goals, thereby addressing the pressing need for affordable housing and reducing the risk of displacement within the community. The updated ADU ordinance and incentives are expected to be introduced at the upcoming Planning Commission meeting on October 28, marking a pivotal moment in the city’s housing strategy.