Richmond Sees Spike in Accessory Dwelling Unit Permits

The city recorded 105 permits for accessory dwelling units in 2026, marking a significant increase in recent activity.

Updated on Oct. 29, 2026 in Home Renovation

Bold vector editorial illustration of a small backyard garden cottage, representing the rise in residential accessory dwelling unit permits. — Richmond officials reported 105 permits issued for accessory dwelling units in 2026, marking a significant rise in housing development activity. AI Illustration. Upload story photo >

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Would you support building an accessory dwelling unit on your property to increase local housing?

Richmond issued 105 permits for accessory dwelling units in 2026, a substantial rise following the citywide legalization of the housing type in 2023. While permit numbers have grown annually, only 41 of the 201 units permitted since 2020 have received certificates of occupancy.

Why it matters

The city is promoting accessory dwelling units to bolster housing supply after shifting away from previous neighborhood density plans. To support this growth, officials are now looking into standardized building plans to help lower design costs for residents.

Richmond currently allows accessory dwelling units up to 1,200 square feet in size. Since 2020, the city has recorded 24 expired permits across its neighborhoods.

The details

Legalization in 2023 removed the requirement for individual city approvals, streamlining the process for homeowners interested in building. Permit growth has been particularly concentrated in areas such as Highland Park, Union Hill, Manchester, and Blackwell.

Seven accessory dwelling unit permits were recorded between 2020 and 2022.
Richmond legalized accessory dwelling units citywide in 2023.
The city recorded 31 accessory dwelling unit permits in 2024.
The city recorded 49 accessory dwelling unit permits in 2025.
The city recorded 105 accessory dwelling unit permits in 2026.

Culture Shift

The city's move mirrors a broader national shift toward rezoning residential lots to increase housing density in established neighborhoods. This departure from previous density restrictions signals a new approach to managing urban growth and affordability.

Homeowners interested in building may benefit from lower future costs if the city successfully implements standardized building plan options. Residents should note that a permit is only the first step toward occupancy, as 24 permits have expired since 2020.

The takeaway

Building an accessory dwelling unit is a major financial commitment, with typical national costs ranging from $120,000 to $300,000. Potential developers should verify all local requirements and ensure they have a clear path to receiving a certificate of occupancy.