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What New Jersey’s Proposed ADU Bill Could Mean for Homeowners
By Jim Joeriman, General Manager Coldwell Banker Riviera Realty
New Jersey’s Legislature is reviewing A2792, a bill that would allow Accessory Dwelling Units (ADUs) on lots currently zoned for single- or two-family homes. As of February 2025, the bill has been introduced, merged with related ADU proposals, and remains under committee review — but it has not advanced.
Even so, its potential impact is worth paying attention to.
What the Bill Would Allow- If passed, A2792 would create a statewide framework permitting:
- Attached ADUs (additions)
- Detached ADUs (backyard cottages)
- Conversions (garages, basements, existing structures)
Municipalities could still regulate size, safety requirements, setbacks, and utilities — but they could no longer prohibit ADUs on qualifying lots.
What is an ADU- An ADU, or Accessory Dwelling Unit, is a secondary, self-contained living space located on the same property as a primary home. It has its own entrance, kitchen, bathroom, and sleeping area — essentially a small home on the same lot. Common Types Include:
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Detached ADU- A standalone structure separate from the main house. Examples: backyard cottages, tiny homes, converted sheds.
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Attached ADU- Built as an addition to the primary home, sharing at least one wall.
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Interior / Conversion ADU- Created by converting existing space such as:
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garage
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basement
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attic
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a portion of the primary residence
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Why ADUs Matter- ADUs offer flexible solutions for:
- Multigenerational living
- Rental income opportunities
- Increased property value
- Downsizing while staying on the same property
- Expanding housing supply without altering neighborhood character
States that have adopted ADU laws have seen strong demand and faster permitting.
What Homeowners and Buyers Should Do Now- Even before the bill passes, it’s smart to start evaluating:
- Lot size and layout
- Utility capacity
- Potential conversion areas
- Zoning and local attitudes
Homes with ADU potential may attract more buyers and could enjoy stronger long-term valuations.
Bottom Line
A2792 is not law yet, but it reflects a growing shift toward flexible housing options in New Jersey. Whether you’re a homeowner, buyer, or real estate professional, understanding ADU opportunities now will give you a head start if — and when — the bill moves forward.
