diff --git a/packages/localize/package.json b/packages/localize/package.json
index 37a802f06c5af..318f3b51a32da 100644
--- a/packages/localize/package.json
+++ b/packages/localize/package.json
@@ -16,6 +16,9 @@
   "ng-update": {
     "packageGroup": "NG_UPDATE_PACKAGE_GROUP"
   },
+  "ng-add": {
+    "save": "devDependencies"
+  },
   "sideEffects": [
     "**/init/index.js",
     "**/init.js",
@@ -36,4 +39,4 @@
   "publishConfig": {
     "registry": "https://wombat-dressing-room.appspot.com"
   }
-}
\ No newline at end of file
+}
diff --git a/packages/localize/schematics/ng-add/index.ts b/packages/localize/schematics/ng-add/index.ts
index 2dbebe97a4b39..f6d304a3ee6c6 100644
--- a/packages/localize/schematics/ng-add/index.ts
+++ b/packages/localize/schematics/ng-add/index.ts
@@ -9,7 +9,7 @@
  */
 
 import {virtualFs, workspaces} from '@angular-devkit/core';
-import {chain, Rule, SchematicsException, Tree} from '@angular-devkit/schematics';
+import {chain, Rule, SchematicContext, SchematicsException, Tree} from '@angular-devkit/schematics';
 import {NodePackageInstallTask} from '@angular-devkit/schematics/tasks';
 import {addPackageJsonDependency, NodeDependencyType, removePackageJsonDependency} from '@schematics/angular/utility/dependencies';
 import {getWorkspace} from '@schematics/angular/utility/workspace';
@@ -97,22 +97,24 @@ function prependToTargetFiles(
   };
 }
 
-function moveToDependencyType(type: NodeDependencyType): Rule {
-  return (host, context) => {
-    debugger;
-    if (host.exists('package.json')) {
-      // Remove the previous dependency and add in a new one under the desired type.
-      removePackageJsonDependency(host, '@angular/localize');
-      addPackageJsonDependency(
-          host, {name: '@angular/localize', type, version: `^0.0.0-PLACEHOLDER`});
-
-      // Add a task to run the package manager. This is necessary because we updated
-      // "package.json" and we want lock files to reflect this.
-      context.addTask(new NodePackageInstallTask());
-    };
-  };
+function moveToDependencies(host: Tree, context: SchematicContext) {
+  if (host.exists('package.json')) {
+    // Remove the previous dependency and add in a new one under the desired type.
+    removePackageJsonDependency(host, '@angular/localize');
+    addPackageJsonDependency(host, {
+      name: '@angular/localize',
+      type: NodeDependencyType.Default,
+      version: `~0.0.0-PLACEHOLDER`
+    });
+
+    // Add a task to run the package manager. This is necessary because we updated
+    // "package.json" and we want lock files to reflect this.
+    context.addTask(new NodePackageInstallTask());
+  }
 }
 
+function noop() {}
+
 export default function(options: Schema): Rule {
   return async (host: Tree) => {
     if (!options.name) {
@@ -132,15 +134,12 @@ export default function(options: Schema): Rule {
 ${localizePolyfill}
 `;
 
-    // If `$localize` will not be used at runtime then we can install `@angular/localize` as a
-    // devDependency.
-    const dependencyType =
-        options.useAtRuntime ? NodeDependencyType.Default : NodeDependencyType.Dev;
-
     return chain([
       prependToTargetFiles(project, Builders.Browser, 'polyfills', localizeStr),
       prependToTargetFiles(project, Builders.Server, 'main', localizeStr),
-      moveToDependencyType(dependencyType),
+      // If `$localize` will be used at runtime then must install `@angular/localize`
+      // into `dependencies`, rather than the default of `devDependencies`.
+      options.useAtRuntime ? moveToDependencies : noop
     ]);
   };
 }
diff --git a/packages/localize/schematics/ng-add/index_spec.ts b/packages/localize/schematics/ng-add/index_spec.ts
index 99350e3ee2206..fabd645919a8c 100644
--- a/packages/localize/schematics/ng-add/index_spec.ts
+++ b/packages/localize/schematics/ng-add/index_spec.ts
@@ -33,11 +33,13 @@ export { renderModule, renderModuleFactory } from '@angular/platform-server';`;
 
   beforeEach(() => {
     host = new UnitTestTree(new HostTree());
-    host.create('package.json', `{
-      "dependencies": {
-        "@angular/localize": "old-version"
+    host.create('package.json', JSON.stringify({
+      'devDependencies': {
+        // The default (according to `ng-add` in its package.json) is for `@angular/localize` to be
+        // saved to `devDependencies`.
+        '@angular/localize': '~0.0.0-PLACEHOLDER',
       }
-    }`);
+    }));
     host.create('src/polyfills.ts', polyfillsContent);
     host.create('src/another-polyfills.ts', polyfillsContent);
     host.create('src/unrelated-polyfills.ts', polyfillsContent);
@@ -176,7 +178,7 @@ export { renderModule, renderModuleFactory } from '@angular/platform-server';`;
     host = await schematicRunner.runSchematicAsync('ng-add', defaultOptions, host).toPromise();
     const packageJsonText = host.readContent('/package.json');
     expect(JSON.parse(packageJsonText).devDependencies?.['@angular/localize'])
-        .toBe('^0.0.0-PLACEHOLDER');
+        .toBe('~0.0.0-PLACEHOLDER');
     expect(JSON.parse(packageJsonText).dependencies?.['@angular/localize']).toBeUndefined();
   });
 
@@ -186,7 +188,7 @@ export { renderModule, renderModuleFactory } from '@angular/platform-server';`;
                .toPromise();
     const packageJsonText = host.readContent('/package.json');
     expect(JSON.parse(packageJsonText).dependencies?.['@angular/localize'])
-        .toBe('^0.0.0-PLACEHOLDER');
+        .toBe('~0.0.0-PLACEHOLDER');
     expect(JSON.parse(packageJsonText).devDependencies?.['@angular/localize']).toBeUndefined();
   });
 });
diff --git a/packages/localize/schematics/ng-add/schema.json b/packages/localize/schematics/ng-add/schema.json
index 9013d316cbcc7..1c255911ce87b 100644
--- a/packages/localize/schematics/ng-add/schema.json
+++ b/packages/localize/schematics/ng-add/schema.json
@@ -13,8 +13,8 @@
     },
     "useAtRuntime": {
       "type": "boolean",
-      "description": "If true then the dependency is included in the `dependencies` section of packge.json, rather than `devDependencies`.",
-      "x-prompt": "Will this project use $localize at runtime?"
+      "description": "If set then `@angular/localize` is included in the `dependencies` section of `package.json`, rather than `devDependencies`, which is the default.",
+      "default": false
     }
   },
   "required": []