How ADUs Are Reshaping Affordable Housing in California with Jonathan Mitchell

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How can rethinking local zoning laws turn small residential lots into high-yield, multi-unit housing solutions?


In this episode, Jonathan Mitchell, founder of ADU Pals, a real estate developer specializing in scalable, affordable housing solutions in San Diego, shares his journey from growing up in Section 8 housing to launching a solar company and ultimately becoming a real estate developer focused on Accessory Dwelling Units (ADUs). He breaks down how ADUs in San Diego have evolved from simple backyard structures to fully stacked multi-unit developments, and why that matters in a city with soaring housing costs. They discuss how city policy, construction know-how, and personal mission converge in Jonathan’s work, and what it takes to build profitably and responsibly in California.






[00:01 - 06:24] Origins and Intentions

• How growing up on welfare in San Diego shaped his views on housing
• Why personal definition of success centers on using time wisely
• The significance of being a positive influence on future generations

[06:25 - 12:43] From Solar to Structures

• How bootstrapping a solar company led to licenses in contracting
• Why learning on the job taught him about scaling and finance
• The importance of understanding margins over revenue

[12:44 - 18:19] Redefining the ADU Model

• Why San Diego allows stacked ADUs that resemble multifamily buildings
• How zoning bonuses are tied to affordability through AMI
• The need to balance profit with policy in high-demand regions

[18:20 - 24:00] Strategy, Risk, and Process

• How they rehab properties, develop in-house, and lease while building
• The importance of understanding entitlements, density, and financing
• What the “triple play” model means for equity, cash flow, and debt

[24:01 - 31:54] Challenges, Culture, and Perspective

• The significance of understanding local policy shifts
• How bad actors in the space affected legislation
• Why consulting with experienced developers mitigates risk





Connect with Jonathan:


Website: www.adupals.com


LinkedIn:   / jonathan-mitchell-a1493410b   


Instagram:   / jonathanmitchellre  






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Tweetable Quotes:


“I don’t want to waste time, man. I want to utilize the time that God has given me to be a light, to be productive.” - Jonathan Mitchell


“You can build a 10-unit property under o


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