Can You Build an ADU in Denver?
Yes — Denver is governed by Colorado's statewide ADU law, which limits what the city can restrict. A 700 sq ft detached ADU here runs about $170,000–$278,000.
Construction in Denver runs about 5% above the Colorado average, so budget toward the higher end of these ranges.
Detached ADU (700 sq ft)
$170,000–$278,000
Garage conversion (400 sq ft)
$53,000–$97,000
Statewide protection
Yes
What applies in Denver
Colorado's HB24-1152 (2024) requires larger municipalities in metropolitan areas to allow ADUs in single-family zones, phasing in by-right approval.
Because Colorado has a statewide ADU law (Colorado HB24-1152 (2024)), Denver must follow these minimums even where its older zoning code is stricter. Confirm fees and design standards with the Denver planning department.
Estimate your Denver ADU cost
Your property
ADU typeEstimated cost in Colorado
$170,000 – $278,000
≈ $243–$397/sq ft turnkey · midpoint $224,000
- $152,300
- Construction
- $40,300
- Design & permits
- $31,400
- Site work
- iSize set locally. This state leaves ADU size limits to your city — typical caps run 600–1,200 sq ft. Check your local code.
- ✓No extra parking likely required. Set by local ordinance — commonly 1 space per ADU unless near transit.
- iOwner-occupancy varies. Owner-occupancy rules are set locally in this state.
- ✓Lot has room. A 700 sq ft ADU uses about 12% of your 6,000 sq ft lot — comfortably within typical coverage limits.
Rule basis: Colorado HB24-1152 (2024)
If you rent it out
$1,125–$1,825
est. rent/mo
7.9%
gross yield
13.6 yrs
payback
~$16,461/yr after a 7% vacancy allowance, before financing & maintenance.
Financed over 20 yrs at 7.5%, the build is about $1,805/mo — vs ~$1,475/mo in estimated rent.
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.
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Other Colorado cities
Estimates are for planning only and are based on regional construction-cost indices and published statewide ADU statutes. Local ordinances, lot conditions and contractor pricing vary — always confirm with your city planning department and a licensed contractor.