Arizona HB 2720 ADU & Casita Playbook: Adding Square Footage & Resale Value
Arizona House Bill 2720 requires cities with 75,000+ residents (including Phoenix, Scottsdale, Tempe, Mesa, Chandler, and Gilbert) to permit at least one attached and one detached Accessory Dwelling Unit (ADU / casita) up to 75% of the main home’s footprint (or 1,000 sq ft) on single-family lots outside private HOA restrictions.
1. Why Non-HOA Lots in 85254, 85251, 85018, and 85281 Are Goldmines
While HB 2720 overrides municipal zoning barriers (eliminating owner-occupancy mandates and extra parking requirements), it does not override private HOA CC&Rs. That makes non-HOA lots with RV gates or alley access in 85254, Old Town Scottsdale (85251), Arcadia Lite (85018), and Tempe (85281/85282) the highest-upside value-add targets in Maricopa County.
2. Appraised Value vs. Construction Cost per Square Foot
In sub-markets trading at $425–$550/sq ft (such as 85254, 85258, and 85018), building a permitted 650–850 sq ft detached guest casita at $240–$290/sq ft creates instant appraised equity while adding multigenerational or rental flexibility.
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Prepared by our Licensed Arizona REALTOR® Desk (HomeSmart LLC · ADRE #SA713873000) for DealDaddy AI clients.