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GlobeNewswire·

California ADU Permits Are Up Sharply Since 2018, but Owners Report Financing Hurdles

  • California building permits for accessory dwelling units (ADUs) rose from approximately 9,000 in 2018 to roughly 42,000 in 2025, with an alternate count removing duplicates placing the 2025 figure near 32,000.
  • A 2021 survey of 52 Los Angeles County ADU builders found 58% cited financing as an obstacle, with none using bank construction loans.
  • BOXABL Inc. signed a nonbinding letter of intent to form a mortgage lending joint venture with Warp Speed Holdings targeting an early 2027 launch.
  • The proposed BOXABL lending platform aims to offer construction loans, construction-to-permanent structures, rate buydowns, and financing for land purchase, site improvements, manufacturing, delivery, installation, and permanent mortgage financing.
  • BOXABL identifies that traditional mortgage programs are often ill-suited for factory-built housing stages including land acquisition, site preparation, and factory production.
  • Rocket Companies reported third quarter 2026 results with $43.6 billion in closed mortgage loan origination volume and a $2.0 trillion servicing portfolio unpaid principal balance.
  • Cavco Industries reported fiscal 2027 second quarter net revenue of $656.4 million, up 17.9% year-over-year, driven by increased loan sale volume.
  • Legacy Housing Corporation reported third quarter 2026 net revenue of $69.7 million, a 72.2% increase from the prior year, with 635 homes sold in the quarter.
  • D.R. Horton reported fiscal 2026 financial services revenues of $817.3 million alongside $30.6 billion in home sales revenues from 84,202 closed homes.
  • Survey data indicates 73% of ADU owners paid by refinancing their primary residence, 50% used cash savings, and second lien loans were the most common financing method for those who did not pay entirely in cash.
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