Accessory Dwelling Units (ADUs) are becoming an increasingly popular housing solution in Denver, offering homeowners a flexible way to add living space and generate rental income.
Before starting an ADU project, it’s essential to understand ADU zoning and regulations in Denver. The city allows ADUs in designated residential zones, but each neighborhood has specific requirements for lot size, building height, and parking. Homeowners must obtain a permit from Denver’s Community Planning and Development department, ensuring compliance with building codes and setback rules. Some properties may require rezoning, so checking local regulations before construction is crucial.
The costs and financing options for ADU construction vary based on size, design, and materials. On average, ADUs in Denver cost between $150,000 and $300,000, depending on whether they are detached, attached, or basement conversions. Financing options include home equity loans, construction loans, and government-backed programs that support affordable housing initiatives. Some homeowners also explore rental income projections to help offset costs.
Despite the investment, building an ADU offers significant benefits. ADUs provide an opportunity for passive income through long-term or short-term rentals, increase property value, and offer flexible living arrangements for aging parents or adult children. Additionally, they contribute to Denver’s housing density without altering neighborhood aesthetics.
Whether you’re looking to create a rental property, a home office, or a guest suite, working with an experienced contractor ensures a smooth ADU construction process that meets all zoning and building requirements in Denver.
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ADU Zoning & Regulations in Denver