California ADU Permits Are Up Sharply Since 2018, but Owners Report Financing Hurdles
Key Highlights
- ➤California ADU permits rose from about 9,000 in 2018 to roughly 42,000 in 2025
- ➤BOXABL (BXBL) signed a nonbinding lending-joint-venture letter of intent with Warp Speed Holdings
- ➤Proposed BOXABL platform may offer construction loans, construction-to-permanent loans and rate buydowns
- ➤Rocket (RKT) reported $43.6 billion in third-quarter 2026 closed mortgage originations
- ➤Cavco (CVCO) fiscal Q2 net revenue rose 17.9% to $656.4 million
- ➤Legacy Housing (LEGH) third-quarter net revenue surged 72.2% to $69.7 million
Expert Statements
Galiano Tiramani, Co-founder and co-CEO of BOXABL
“Financing can be one of the hardest parts of buying a factory-built home, and we want to make it as simple as building one”
Galiano Tiramani, Co-founder and co-CEO of BOXABL
“Bringing financing into the BOXABL buying process, with multiple loan options planned, is the next step in our vertical integration strategy.”
Varun Krishna, CEO and Director of Rocket Companies
“Rocket gained market share in both purchase and refinance, quarter over quarter and year over year, and delivered our highest profitability margin in nearly five years, even as mortgage rates climbed to a three-year high”
Bill Boor, President and Chief Executive Officer of Cavco Industries
“This is our second consecutive quarter of record revenue and unit volume. While orders were off the preceding quarter pace, they remained healthy and backlogs continued to grow”
Kenneth E. Shipley, Chairman and Chief Executive Officer of Legacy Housing Corporation
“Looking ahead, we expect to open our 350-plus-acre Bastrop community for lot and home sales in 2027, which will give us additional ways to put our homes and financing to work”
David Auld, Executive Chairman of D.R. Horton
“Housing market conditions became more challenging during the fourth quarter as rising mortgage rates, affordability constraints and cautious consumer sentiment continued to pressure new home demand. Our experienced operators responded with discipline by adjusting incentives, pricing and starts on a community-by-community basis to align our inventory levels with current demand”
LAS VEGAS, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Wall Street Investor News Commentary - California has been permitting more backyard homes every year since 2018. Annual progress report data that California cities and counties file with the state Department of Housing and Community Development show building permits issued for about 9,000 accessory dwelling units (ADUs) in 2018 and roughly 42,000 in 2025, according to one count of data reported to the California Department of Housing and Community Development. An alternate count that removes duplicate records puts 2025 nearer 32,000. Paying for them has been harder. In a 2021 Inclusive Action for the City survey of 52 Los Angeles County homeowners who had already built ADUs, 58% said obtaining financing was an obstacle, and none of the respondents financed their ADU through a construction loan from a bank. Companies mentioned in today’s commentary include: BOXABL Inc. (Nasdaq: BXBL), Rocket Companies, Inc. (NYSE: RKT), Cavco Industries, Inc. (Nasdaq: CVCO), Legacy Housing Corporation (Nasdaq: LEGH), D.R. Horton, Inc. (NYSE: DHI).
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