A 749-square-foot home in someone else’s backyard just sold for $530,000 in California — the first-of-its-kind deal being touted as a new path to homeownership.
The property is a two-bed accessory dwelling unit in San Jose that was bought by Daniel Aflakian after it became the first ADU condominium in the state, now allowed under Assembly Bill 1033.
“I knew there are some rules that were changing to be able to make some affordable housing around and I found the first one,” Aflakian told ABC7.
Although smaller than a traditional single-family home, Aflakian said the property offers many of the same advantages.
“Similar to single-family because water, electrical, everything is separate. You don’t have any neighbor attached to your unit,” he said.
When asked whether he was still getting everything he needed out of an ADU, Aflakian replied: “I believe so.”
The dystopian sale comes as the Northern California city of San Jose remains one of the country’s least affordable housing markets.
According to Redfin data cited by ABC7, buyers need about 66% of their income to afford a home at the city’s median sale price—making it the fourth-least affordable housing market in the nation by that measure.
San Jose Mayor Matt Mahan said the city is using new approaches to expand homeownership opportunities.
“We’re unlocking homeownership opportunities at lower price points, one ADU at a time,” Mahan said.
“We’re not waiting for costs to come down – we’re using innovative policies to create affordability wherever we can.”
City officials revealed another ADU condominium has already been approved, while two more applications are under review.
Aflakian hopes the process will help more people become homeowners.
“It will help people who want to own a place that’s more affordable and more easy to work and get a home,” he said.
Asked whether he hopes others will follow in his footsteps, Aflakian replied: “Yeah, I’m sure I’m not the last.”
