Richmond homeowners are pulling permits for backyard cottages, basement apartments and attic units faster than at any point since the city opened the door to them. Getting those units built and occupied is another matter. Planning staff told City Council members in October that accessory dwelling unit (ADU) permits have hit a record this year, even though only a small share of the units permitted since 2020 have reached move-in condition (via Axios Richmond).
For contractors who do additions, conversions and small detached builds, the numbers show real demand, and a wide gap between a homeowner's permit and a finished unit.
Richmond has logged 105 ADU permits so far in 2026, according to city data reported by Axios. That's more than double the 49 recorded in all of 2025, and a long way up from 31 in 2024 and nine in 2023. Between 2020 and 2022, the city recorded just seven.
The climb follows the city's 2023 decision to allow ADUs citywide without individual approvals, which took a layer of process out of adding a second unit to a residential lot.
The finish line is where things stall. Of the 201 ADU permits recorded since 2020, only 41 have received a certificate of occupancy. Another 24 have expired. That leaves roughly 136 permits that are neither finished nor expired, though the city data as reported doesn't break out how many of those are actively under construction.
Planning director Kevin Vonck told council members that ADUs are gaining popularity but adding relatively little housing so far, and he pointed to construction cost as one hurdle. Detached units are the most expensive to build, while basement and attic conversions generally cost less. Nationally, ADUs typically run $120,000 to $300,000 depending on size, location and site conditions, according to Fannie Mae figures cited in the report.
Permit activity is concentrated in a few parts of town, Vonck said: northern Highland Park on the Northside, northern Union Hill in the East End, and western Manchester running into Blackwell south of the James.
Bigger units could be coming
The ADU push is tied to Code Refresh, Richmond's rewrite of its zoning code. Mayor Danny Avula's administration released the third draft in mid-August, and it pulled back on earlier plans to allow duplexes by right on nearly every residential lot. Under Draft 3, duplexes would be allowed by right mainly in residential attached districts, such as much of The Fan, Jackson Ward and Church Hill (VPM; The Richmonder).
With duplexes scaled back, ADUs carry more of the load for adding homes in existing neighborhoods. Today's code caps an ADU at one-third of the main home's floor area or 500 square feet, whichever is greater. Draft 3 would allow ADUs up to 1,200 square feet, though an ADU can't be taller than the main house and still has to meet standards for height, setbacks and neighborhood fit.
A city spokesperson told Axios that Richmond wants more homeowners to use the expanded ADU rules, while noting that the overhaul also encourages larger developments along major corridors. Draft 3 is expected to be the version the administration sends to the Planning Commission and City Council, which have the final say. VPM reported in August that a council vote was expected this fall.
The city is also exploring standardized ADU building plans. Vonck said pre-designed plans could save homeowners tens of thousands of dollars in design costs. No timeline for those plans was given.
Why it matters for Contractors
Richmond has a pile of permitted ADUs that haven't turned into finished units, and cost is the reason the city itself is pointing to. That's an opening for small shops that can give homeowners a realistic number early.
A few practical points:
Conversions are the budget-friendly path. If a homeowner balks at the price of a detached cottage, a basement or attic conversion may still pencil out. Being able to price both options side by side is useful.
Expired permits mean stalled projects. Twenty-four permits have lapsed, and many more are open but unfinished. Homeowners who started and stopped may still want the unit if the scope and price make sense.
Watch Code Refresh. If Draft 3 passes with the 1,200-square-foot limit, ADUs can get bigger, which means bigger jobs. Standardized plans, if the city follows through, could cut design costs and leave more of a homeowner's budget for construction. Planning Commission and City Council agendas on rva.gov are where those votes will show up.
Know the hot spots. Highland Park, Union Hill, Manchester and Blackwell are where permits are clustering now, so that's where neighbors are most likely to be seeing ADUs go up.