13 Jul 2025 11:00
How ADUs Are Reshaping Affordable Housing in California with Jonathan Mitchell
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: https://www.linkedin.com/in/jonathan-mitchell-a1493410b
Instagram: https://www.instagram.com/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
