🏡 ADUs in Reno: They Are Coming, Are We Ready?

As city leaders move forward on accessory dwelling units, residents weigh the benefits—and the growing pains.

After years of debate and delay, Accessory Dwelling Units (ADUs)—also known as granny flats, casitas, or backyard homes—are a part of Reno’s housing strategy. In April, the Reno City Council drafted an ADU ordinance, and at the June 11 council meeting, ADUs, as well as related state Assembly bills AB 131 and AB 396, were discussed. The ordinance is under review. Here’s what you need to know.

🏛️ What Happened in Carson City

  • AB 131, which would have provided property tax exemptions for homeowners who rent ADUs to voucher recipients, died again during the legislative session—the second time in a row. It’s expected to return in the 2027 legislative session.

  • AB 396 was passed and includes prescriptive requirements for cities. Though heavily amended, it still mandates that cities:

    • Pass an ADU ordinance.

    • Limit parking requirements to no more than one space per ADU.

    • Ensure setbacks are no more restrictive than for the main home.

🏡 What the Reno City Council Did

  • In April 2025, the City Council reviewed and voted to advance a draft accessory dwelling unit (ADU) ordinance, which would allow accessory dwelling units in single-family zones, albeit with certain restrictions, such as lot size and requirements, pending further details.

  • That draft was sent to both the Reno Planning Commission and undergo additional public feedback, with staff expected to incorporate community input before bringing it back to the Council for official adoption.

  • Reno officials said our new ordinance aligns well with these requirements. A Councilmember noted that Reno was the last major city in Nevada to adopt ADUs and called the move a “bold step” after a six-year political detour.

đź§­ The Debate: Are ADUs a Housing Fix or a Neighborhood Risk?

âś… Pros of ADUs

  • Increases housing supply without sprawl.

  • Great for multi-generational families, caregivers, or young renters.

  • They can offer supplemental income to homeowners.

  • They use existing infrastructure more efficiently.

⚠️ Cons of ADUs

  • Can stress parking and utilities in older neighborhoods.

  • Some residents feel it erodes the character of single-family zoning.

  • Narrow streets will become more congested due to cars from ADU occupants.

  • Limited street parking, especially in older neighborhoods not designed for higher density.

  • Emergency vehicle access is impacted when more cars are parked curbside, as it prevents them from safely navigating properties.

  • Public safety is impacted by increased density without upgrades to road width, lighting, and drainage.

🏙️ The Reno (draft) Ordinance and Parking

  • AB 396, which Reno’s draft ADU ordinance is modeled to comply with, limits cities to requiring no more than one off-street parking space per ADU, sparking pushback from residents in some cities due to these exact concerns.

  • During the council meeting, Council Members discussed setbacks and parking, demonstrating awareness of potential impacts on neighborhood infrastructure. However, traffic and emergency access were not explicitly discussed in-depth in the June 11 meeting.

🛏️ Are ADUs Just Becoming Airbnbs?

One growing concern around ADUs is their potential use as short-term rentals through platforms like Airbnb or Vrbo. While ADUs are often promoted as a way to expand affordable, long-term housing, critics argue that without strict oversight, many of them end up serving tourists, not locals. This trend can undermine housing goals by reducing the number of units available to residents and driving up neighborhood rents. In many cities, it's more profitable for homeowners to list their ADU on a nightly basis than to rent it to a full-time tenant. That’s why some communities have adopted regulations banning or limiting short-term rentals in ADUs, especially in single-family zones.

🏙️ The Reno (draft) Ordinance and STRs

Reno’s draft ADU ordinance addresses short-term rentals in relation to ADUs.

  • The draft ordinance includes provisions that regulate ADUs used as short-term rentals (e.g., vacation or nightly rentals).

  • It does not regulate short-term rentals in primary residences, focusing enforcement only on accessory units.

This means homeowners may still rent their main home via Airbnb/Vrbo without restriction, but if they list their ADU, it would be governed by the new ordinance.

🗣️ Community Voices

At the council meeting, Pablo Nava-Duron, a Ward 3 resident, warned that ADUs are being wrongly sold as affordable housing. He called on the city to prioritize equity-driven planning that protects vulnerable neighborhoods from displacement.

đźš§ Next Steps

  • The Planning Commission is set to review the refined draft during the summer.

  • Following their recommendation, the City Council will introduce and vote on the final ordinance, then it needs to be formally adopted in a future session.

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