Thinking about adding extra space to your property? Meet the backyard casita – also called an ADU! An accessory dwelling unit (ADU) is a self-contained living space that shares a lot with a primary residence. Whether it’s a converted garage or a backyard tiny home, an ADU can serve as a rental unit, guest house, or private retreat.
The best part? ADUs offer a smart way to maximize your property’s potential while keeping costs down. They come in all shapes and sizes—from detached stand-alone units to basement apartments. In Arizona, ADUs are gaining traction as homeowners look for creative ways to expand their living space and generate rental income.
Are ADUs Allowed In Arizona?
Yes! Thanks to recent legislative changes, ADUs are more accessible than ever in Arizona. The passing of SB 1415 requires cities with populations over 75,000 to adopt state ADU regulations, ensuring homeowners have the right to build at least one ADU on their property.
These laws prevent cities from imposing overly restrictive rules, such as requiring additional parking or dictating exterior design. The result? More flexibility and fewer roadblocks for homeowners looking to build. However, local municipalities still have a say in certain aspects, like rental restrictions and short-term rental bans.
ADUs in Phoenix, AZ
If you’re in Phoenix, you’re in luck! Recent changes in state law mean the city can no longer ban short-term rentals for ADUs. House Bill 2720, signed in 2024, ensures that local governments cannot prohibit ADUs from being used as short-term rentals.
This means that starting in 2025, you’ll be able to list your Phoenix ADU on platforms like Airbnb and VRBO, opening up new opportunities for rental income.
While Phoenix had previously imposed restrictions, those rules are being updated to align with the new state law. If you’re considering an ADU as a short-term rental, be sure to stay informed about any permitting requirements or city-specific guidelines that may still apply.
Statewide ADU Regulations
Zoning Laws
Arizona’s ADU laws apply to all single-family properties, making it easier for homeowners to build. No special zoning overlays or variances are required, as long as your property meets basic criteria. If your lot allows a single-family home, it likely allows an ADU.
Cities must also follow state regulations that prevent them from imposing stricter zoning laws on ADUs than they do on primary residences. This means no additional hurdles like excessive lot size requirements or unrealistic building restrictions.
Size and Occupancy Limits
Wondering how big your ADU can be? The state law sets clear limits: your ADU can be up to 75% of your main home’s total floor area or 1,000 square feet, whichever is smaller. This ensures ADUs remain accessory structures rather than full-scale second homes.
Occupancy rules are also homeowner-friendly. Arizona prohibits cities from requiring a relationship between ADU occupants and the main home’s residents. That means you can rent it out, move in your in-laws, or use it however best fits your needs.
Setback Requirements
Good news—Arizona keeps ADU setback requirements reasonable. Side and rear setbacks can’t exceed five feet, allowing homeowners to build closer to property lines than previously permitted.
This flexibility is especially beneficial for smaller lots, where every square foot counts. Whether you’re planning a backyard studio or a detached casita, you can maximize your space without unnecessary restrictions.
Permitting
While statewide regulations streamline the process, you’ll still need to obtain the proper permits before building. Typically, this includes zoning approvals, building permits, and compliance with fire and safety codes.
The permitting process varies slightly by city, but the new state law ensures that local governments can’t impose excessive restrictions. If you’re unsure where to start, your city’s planning department or a professional ADU builder (like us!) can guide you through the process.
How To Get Started Building An ADU In Arizona
Ready to add an ADU to your property? Start by evaluating your lot size, utilities, and zoning requirements. Check with your local building department to confirm permit procedures and ensure your design meets state regulations.
Next, consider your goals. Do you want an income-generating rental, a private home office, or a space for aging parents? Your intended use will shape design choices like layout, accessibility features, and square footage.
Build Your Backyard Casita With DwellWell Tiny Homes
At DwellWell Tiny Homes, we specialize in designing and building custom ADUs that blend style, efficiency, and comfort. Whether you’re dreaming of a modern guest house or a cozy backyard retreat, we handle the process from start to finish—permits, design, and construction included.
With Arizona’s ADU laws opening new possibilities, there’s never been a better time to build. Let’s turn your backyard into something amazing. Contact us today to get started!
