When you want to add more livable space to your property, whether it’s to care for loved ones, provide a retreat for your recent college grad, or use it as a guest house, you may be considering adding an ADU, or accessory dwelling unit, to your property.
If you already have a detached garage on your lot, you’ve got a head start! Converting a garage to a tiny home is an efficient and cost-effective way to make the most of your existing space.

Key Benefits of Garage Conversions
Garage conversions are a popular choice for homeowners who don’t want to sacrifice space on their lot or simply need a quick, affordable solution to up their living space! In addition, you can expect these benefits from your garage conversion ADU:
Efficiency to Build
Converting your existing garage space to an ADU or building on top are both more efficient than a new build. This is because the foundation and structure are already in place and utility connections often are as well. This can make the construction process faster and more cost-effective than a complete new build.
However, if your garage is old or in poor condition, there may be structural concerns you need to address first. Get a consultation to learn if your garage is a good fit for a conversion.
Convenience and Space
Garage conversions work within the existing footprint of buildings on your property. If your lot would feel crowded with an additional building, adding to your garage makes a lot more sense! If you don’t use your garage, why not make the most of it by transforming it into a liveable space? If you do, adding on top of your garage is convenient if you plan to continue using the actual garage space for storage or parking.
Increased Property Value
Homes with ADUs generally fetch a higher price than homes without. In certain localities, ADUs can increase your property value by 35%. A well-designed, thoughtful garage conversion adds habitable square footage to your home, which makes a difference when it hits the market.
Financials: How Does a Garage Conversion Compare to a New Build?
A new ADU, while a great choice for many homeowners, is a longer and slightly more expensive option due to the increase in labor and materials.
When building a new ADU, your contractor will:
- Assess your site
- Dig and install a foundation
- Route utilities
- Build the structure
- Install appliances and finishes
- Inspect
For a garage conversion, your ADU builder can skip a few steps. They’ll need to:
- Assess your garage for structural soundness and ability to be converted
- Route utilities if necessary, though many garages already have electric and water
- Build or add-on to the structure
- Install appliances and finishes
- Inspect
By skipping a few steps, the cost decreases. Since you don’t need the materials or labor for a foundation, and you can rely on existing utility connections, garage conversions can be more affordable for homeowners.
The bottom line: New ADUs can cost about $100 per square foot higher than their garage conversion counterparts.
Zoning and Permitting for Garage Conversions in Colorado
In Colorado, zoning for ADUs varies based on where you live. You can visit your local building department’s website to learn more about ADUs for your locality.
In Denver, ADUs are allowed in all residential areas throughout the city. However, the height, size, and placement are regulated by the zoning code. In addition, the ADU must look “compatible” with the primary residence. You can view more specific details about building an ADU on your Denver property here.
Garage Conversion Ideas
Garage conversions come in all shapes and sizes — when you work with a licensed ADU builder, the sky is the limit!
You can choose to convert your existing space into a comfortable and cozy studio apartment, perfect for hosting guests or using as a private office space.

Need more privacy? Consider expanding your garage and adding on top — this offers the opportunity for more space and can house a private bedroom, ideal for longer-term visitors, housing for family members, or using as a rental property.

Ready to convert your garage into a lovely, livable garage apartment or ADU? Learn more about this economical ADU solution and get a free consultation.
We specialize in budget-friendly ADUs in Colorado, including garage additions like our floorplan, the William. Explore the rest of our floor plans for inspiration here.