This $199,000 tiny home can be installed in a San Jose, California backyard in one day - see inside

Abodu

Abodu unit.

• A Silicon Valley startup is delivering accessory dwelling units (ADUs) that can be installed in just one day.
• The units are preapproved in San Jose, California and could be a potential solution for the lack of affordable housing in the area.
• Abodu units are just under 500 square feet and start at $199,000.
• Visit Business Insider's homepage for more stories.

Redwood City, California startup Abodu has a potential solution for one of the most expensive housing markets in the country: accessory dwelling units.

ADUs like the ones offered by Abodu are permanent structures often added to the property of already-existing single-family homes. They're also sometimes called "granny units" or "in-law apartments," though they can also be a solution for adult children moving back to their parents, for example.

Zillow ranked San Jose the hottest housing market in the country for the past two years, and it has prices to match. Last year, the median home price in the city was $1.2 million. Meanwhile, San Jose's homeless population has continued to grow, increasing more than 40% between 2017 and 2019.

California Governor Gavin Newsom and San Jose Mayor Sam Liccardo are working together to experiment with possible affordable housing solutions, CityLab reported, and Newsom has committed to adding 3.5 million homes to the state by the end of his term. Abodu's ADUs have a big leg up here, because the prefab units are preapproved in San Jose, meaning that the paperwork turnaround in the city for buyers can be as little as a day.

Here's a look inside.