How ADUs Are Reshaping Affordable Housing in California with Jonathan Mitchell

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Weiss Advice
How ADUs Are Reshaping Affordable Housing in California with Jonathan Mitchell
Jul 13, 2025
Yonah Weiss

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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: 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

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