I dont know about that as I havent seen any good examples. Can you provide examples? Also everything is selling fast and for high prices so I would not necessarily attribute it to that. This is how I would look at it.
A 1BR condo in this area (not west of 5) starts around $350K and comes with high HOA fees plus RE taxes. Rents for a 1BR start around $1700. It costs at least $150K and likely more to build a decent one. Purely as an investment property I cant see how one wouldnt add at least $150-$200K or more to the value of a property until proven otherwise. While it is till a hypothesis I think its a very strong one. Id certainly want to test that valuation if I was a seller in this market
FWIW I have a client that built a beautiful 2/2 ADU west of the 5. Because it got classified as an ADU he cant do rentals less than 30 days. He does monthly rental fully furnished. His annual rental income would drop your jaw on the ground.