Costs & Financing Options for ADU Construction

Costs & Financing Options for ADU Construction

How Much Does It Cost to Build an ADU in Denver?

Building an Accessory Dwelling Unit (ADU) is a smart investment, but understanding the costs is essential for proper budgeting. At 303 Construction, we provide transparent pricing and financing solutions to help homeowners affordably build ADUs in Denver.

Average Cost of ADU Construction

ADU TypeEstimated Cost
Detached ADU (DADU)$175,000 – $350,000
Attached ADU (AADU)$100,000 – $250,000
Garage Conversion$75,000 – $200,000
Basement ADU$50,000 – $150,000

Key Factors Affecting ADU Costs

1. Size & Design Complexity

  • Larger ADUs or custom-designed units cost more due to higher material and labor expenses.

2. Permits & Zoning Adjustments

  • Permit fees range from $2,000 – $10,000, depending on project scope.
  • Rezoning or variance requests may add extra costs and delays.

3. Utility Connections & Upgrades

  • New water, sewer, and electrical connections can add $10,000 – $30,000 to ADU costs.

4. Interior Finishes & Features

  • High-end materials (quartz countertops, hardwood floors) increase costs.

3. Financing Options for ADU Construction

  • Home Equity Loans – Borrow against your home’s equity for ADU financing.
  • Construction Loans – Short-term loans covering ADU building costs.
  • FHA 203(k) Loans – Federal-backed loans for home improvements, including ADUs.
  • Denver ADU Grants & Incentives – Some areas offer affordable housing grants.

How 303 Construction Helps You Build Within Budget

  • Customized ADU designs that fit your financial goals.
  • Assistance with securing loans and financing options.
  • Transparent cost breakdowns—no hidden fees.

Interested in affordable ADU construction in DenverContact 303 Construction today for a free estimate!

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