Koreatown parking spaces transformed into ADUs

In Koreatown—a neighborhood already known for dense housing and scarce parking—landlords are beginning to replace tenant parking spaces with Accessory Dwelling Units (ADUs). According to NBC Los Angeles (2024), several apartment complexes have notified residents that garages and carports will be converted into rental units.

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Housing laws open the door

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This shift has been enabled by state legislation. Under Senate Bill 1211, signed into law in 2024, property owners can convert existing parking structures into ADUs without the obligation to replace parking, as long as the projects comply with statewide ADU regulations. The California Department of Housing and Community Development (HCD) confirms that cities must process and approve such projects “by right,” limiting local governments’ ability to block them.

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A balancing act for owners

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From a landlord’s perspective, the economics are compelling. ADUs can provide new rental income streams while raising overall property values. FOX 11 Los Angeles (2024) reported that in Koreatown, some tenants losing parking were offered $200 monthly rent credits, though many argue this does not reflect the inconvenience of securing off-street parking in one of Los Angeles’ most congested neighborhoods.

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While the loss of parking has raised concerns for tenants, property owners often view ADUs as a practical investment. Beyond addressing California’s housing shortage, these units can improve cashflow and boost overall property value. A 2022 Terner Center for Housing Innovation study found that homeowners and landlords often recoup ADU construction costs through rent within 7–10 years, depending on location and financing.

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Koreatown and beyond

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At an apartment complex on Kingsley Drive, tenants received notice that their assigned parking would be eliminated for ADU construction, according to NBC Los Angeles (2024). Nearby on Normandie Avenue, another property has already begun replacing garages with rental units.

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The issue extends beyond Koreatown. In Hollywood, NBC Los Angeles reported on tenants, including a disabled Navy veteran, now forced to walk blocks from street parking after losing on-site spaces. The Los Angeles Tenants Union has since amplified these concerns, pointing to a broader tension between expanding housing supply and maintaining livability.

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Looking ahead: finding balance in housing policy

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California’s ADU laws are among the most progressive in the nation, and they’re successfully expanding housing options in high-demand areas. Yet Koreatown’s experience highlights potential unintended consequences. Balancing new housing creation with tenant protections, accessibility, and parking needs may require additional city-level solutions, such as shared parking agreements or transit incentives.

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ADUs remain a critical tool for expanding housing supply. However, the Koreatown example underscores the importance of tailoring projects to the realities of each neighborhood—particularly where space and transportation are already under strain.

Quick Tip: Always check with your local jurisdiction before moving forward with an ADU project. While California state law provides the framework, local enforcement and neighborhood dynamics—such as parking availability—play a big role in how an ADU will affect residents and property value.

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Xavier Rodriguez is the CEO of ADU Geeks, San Diego’s leading ADU consulting and project management firm. In 2024, the company was ranked No. 1 on the San Diego Business Journal’s Fastest Growing Private Companies list in the Small Business category, achieving 594.3% revenue growth.