Why ADUs Remain the Best Use of Capital for Multifamily Owners

The ADU Parking Tradeoff in LA Multifamily

A lot of LA multifamily owners are adding ADUs right now, but there’s no clear consensus on the best strategy.

I’m seeing two very different approaches:

• Some owners are eliminating parking entirely to maximize unit count

• Others are adding a few ADUs while preserving most of their existing parking

There’s no “right” answer. It’s a classic short-term vs. long-term tradeoff.

Short term:

Units without parking are generally harder to lease and often require greater concessions, especially outside of LA’s most walkable neighborhoods.

Long term:

If autonomous vehicles and robotaxis gain widespread adoption over the next decade, parking demand could look very different than it does today.

• Parking requirements from tenants may become less relevant

• Excess parking could become underutilized space

• Buildings that maximized density early may ultimately outperform

  
  

That future may still be years away, but the trend is worth paying attention to.

LA remains a car-centric city, but the long-term trend may be changing.

Either way, in most cases ADUs remain one of the best uses of capital for multifamily owners in LA’s stronger A and B submarkets.