Building an Amazing Accessory Dwelling Unit in Colorado in 2023

The housing market is continuously evolving, and one trend that’s capturing the attention of homeowners is the rise of Accessory Dwelling Units (ADUs). In states like Colorado, Accessory Dwelling Units are more than just a housing fad; they’ve become a viable solution to housing shortages, offering both affordability and flexibility. As experts in home remodeling, we can say that building an accessory dwelling unit in 2023 can bring a host of benefits, from providing rental income to increasing your property value.

What is an Accessory Dwelling Unit?

An ADU is not merely an extra room added to your existing home. Instead, it is a fully-functional secondary living space that shares the same property lot as your main residence. These independent units often come equipped with essential amenities like a kitchen, bathroom, and sleeping area. You have the option to either retrofit a section of your existing home—such as a basement or attic—or build a detached structure to serve as the accessory dwelling unit.

The Importance of Accessory Dwelling Units in Denver and Beyond

Colorado has seen growing interest in accessory dwelling units. According to a background report by Denver’s Community Planning and Development department, ADUs play a critical role in addressing housing issues and creating more equitable and sustainable communities. The city’s zoning regulations have also been updated to accommodate this increasing demand, offering more flexibility in ADU construction.

Why Build an Accessory Dwelling Unit in 2023?


Financial Benefits

One of the most compelling reasons to build one is the potential for rental income. Whether you’re looking to support a family member or rent out the space to tenants, it can be a steady source of income.

Increases Property Value

Accessory dwelling units are attractive features for future homebuyers, often increasing a property’s overall value. They add functional living space without dramatically altering the main home’s structure, offering a high return on investment.


They promote a more efficient use of land and resources. By utilizing existing lots and infrastructures, they contribute to more sustainable urban development.


Accessory dwelling units versatile nature makes them suitable for various needs, whether it’s providing extra space for an expanding family, a home office, or a guest suite.

Essential Steps for Building an Accessory Dwelling Unit in Colorado

accessory dwelling unitUnderstanding Zoning Regulations

Before embarking on your project, it’s crucial to understand local zoning laws. The City of Denver, for instance, has specific zoning code amendments that address the units. Make sure to check for updated zoning laws and acquire the necessary permits.

Budgeting and Financing

Setting a realistic budget is crucial. Besides construction costs, consider utility connections, furnishings, and landscaping.

Finding the Right Contractor

Choosing a professional home remodeling company experienced in ADU construction will make the process much more straightforward. Ensure that the company is familiar with local zoning laws and can provide an end-to-end service, from design to completion.

Construction and Inspection

Once you’ve selected a contractor, the construction phase begins. After construction, an inspection by local authorities ensures that the ADU meets all safety and quality standards.


Building an accessory dwelling unit in Colorado in 2023 is a strategic decision that can yield financial, practical, and long-term advantages. By understanding the importance of them in addressing housing needs and following essential building steps, you can make a well-informed choice. With help, the process can be made simpler, resulting in a good accessory dwelling unit that lasts a long time.

For further assistance on building your accessory dwelling unit, feel free to reach out to us. We’re experts in home remodeling and well-versed in the latest trends and regulations concerning ADUs. Check out our portfolio for design ideas that can transform your home and elevate your living experience in 2023.