As housing needs continue to evolve in Denver, Colorado, many homeowners are hearing more about accessory dwelling units and wondering what they actually are, how they work, and whether they’re allowed on their property.
Accessory dwelling units are becoming a popular solution for adding flexible living space, creating rental income, and increasing property value — all without changing neighborhoods or requiring homeowners to move. Below, we break down exactly what accessory dwelling units are, how they’re used in Denver, and why they’re gaining traction across the city.
What Are Accessory Dwelling Units?
An accessory dwelling unit is a smaller, secondary residential home built on the same lot as a primary residence. It is considered “accessory” because it exists in addition to the main house and cannot be sold separately from it.
Accessory dwelling units are fully livable spaces. They include:
- A kitchen or kitchenette
- A bathroom
- Sleeping and living areas
- A private entrance
In Denver, accessory dwelling units are often called:
- Carriage houses
- Backyard cottages
- Garage apartments
While the names vary, they all refer to the same concept: a separate, complete, independent living space on a single-family residential lot.
Types of Accessory Dwelling Units in Denver
Accessory dwelling units in Denver typically fall into a few main categories.
Detached Accessory Dwelling Units
These are stand-alone structures built in the backyard, separate from the main home. Detached accessory dwelling units are common in Denver neighborhoods with alley access and are often designed to match the architectural style of the primary house.
Garage-Based Accessory Dwelling Units
Many Denver accessory dwelling units are built above or within an existing garage or as part of a new garage structure. This option maximizes land use while maintaining yard space.
Attached or Interior Accessory Dwelling Units
In some cases, accessory dwelling units may be created within the footprint of the main home, such as basement apartments or additions, when zoning allows. ADUs can also be attached to the main home, creating living space and a separate entrance in the new addition area.
Each type has different zoning, size, and design considerations, which is why local experience matters when planning an accessory dwelling unit in Denver.
Why Denver Is Seeing More Accessory Dwelling Units
Denver’s housing market, population growth, aging senior population and zoning updates have made accessory dwelling units an increasingly practical option for homeowners.
Accessory dwelling units help address:
- Limited housing inventory
- Rising rental costs
- Multi-generational living needs
- Aging in place, accessibility
- Desire for additional income without relocating
By allowing more accessory dwelling units, Denver can gently increase housing options while preserving the character of existing neighborhoods.
What Are Accessory Dwelling Units Used For?
Accessory dwelling units are highly versatile, which is part of their appeal.
Common uses for accessory dwelling units in Denver include:
- Short-term or Long-term rental housing
- Housing for family members or aging parents
- Guest houses
- Home offices or creative studios
- Future downsizing options for homeowners
Many homeowners build accessory dwelling units with one use in mind but appreciate the flexibility to adapt the space over time.
Are Accessory Dwelling Units Legal in Denver?
Accessory dwelling units are allowed in most Denver zoning districts, but they are not permitted everywhere. Denver has specific rules governing where and how accessory dwelling units can be built.
Key considerations include:
- Zoning district and lot eligibility
- Maximum size and height
- Owner-occupancy requirements
- Design compatibility standards
- Alley access or lot configuration
Because Denver accessory dwelling unit regulations can be complex, working with a builder who understands local zoning is essential to avoid delays or redesigns.
How Big Can an Accessory Dwelling Unit Be?
The size of an accessory dwelling unit in Denver depends on zoning, lot size, and structure type. In general, accessory dwelling units are smaller than primary homes and designed to use space efficiently.
Most accessory dwelling units range from 400-800 square feet and include:
- Studio layouts
- One-bedroom layouts
- Compact two-bedroom layouts (in some cases)
Thoughtful design is key to making smaller accessory dwelling units feel open, functional, and comfortable.
Do Accessory Dwelling Units Increase Property Value?
In many cases, yes. Accessory dwelling units often increase property value by adding livable square footage and rental potential.
Benefits of accessory dwelling units include:
- Additional income potential
- Broader appeal to future buyers
- Long-term flexibility
- Better use of existing land
For Denver homeowners, accessory dwelling units can function as both a lifestyle upgrade and a long-term investment.
Why Work With an Experienced Accessory Dwelling Unit Builder?
Building an accessory dwelling unit involves more than just construction. It requires coordination between zoning, design, permitting, utilities and construction.
Little Home Builder specializes in:
- Designing accessory dwelling units for Denver properties
- Navigating local zoning and permitting requirements
- Creating functional, high-quality accessory dwelling unit plans
- Managing the entire build process from start to finish
Working with a local builder helps ensure your accessory dwelling unit is compliant, efficient, and built to last.
Is an Accessory Dwelling Unit Right for Your Denver Property?
Accessory dwelling units are not one-size-fits-all, but for many Denver homeowners, they provide unmatched flexibility and value. Whether your goal is rental income, family housing, or flexible living, an accessory dwelling unit can be a smart addition to the right property.
To explore your options, review available accessory dwelling unit plans or speak with a Denver builder who understands local regulations and design requirements.
