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Housing affordability remains one of Metro Denver’s biggest challenges. As home prices and rents continue to strain household budgets, communities are seeking practical and creative ways to create more accessible housing opportunities within existing neighborhoods.
Accessory dwelling units, or ADUs, are one creative housing solution gaining momentum in Colorado. These are smaller homes, built on the same property as an existing residence, and built to suit their surrounding neighborhood. Over the past several years, Habitat for Humanity of Metro Denver and its partners at the Denver Housing Authority (DHA) have helped demonstrate what is possible with ADUs through the Single Family Plus (SF+) ADU Program, creating new affordable housing opportunities while strengthening housing stability for longtime residents.
Why ADUs matter
ADUs can have a significant impact on housing affordability and stability.
These homes create additional housing within existing neighborhoods, providing more affordable rental options in communities where available housing supply is limited. Because ADUs are built on residential lots that already contain a primary home, they can add housing without requiring large-scale redevelopment or major changes to neighborhood character.
For many families, ADUs can provide a place for aging parents, adult children, caregivers, or extended family members to live nearby while maintaining independence. This type of multigenerational living can help families stay connected and support loved ones through different stages of life.
By generating supplemental rental income, an ADU can help offset rising property taxes, maintenance costs, and unexpected housing expenses for longtime homeowners. For those living on fixed or limited incomes, that added stability can make the difference between staying in their neighborhood and being forced to leave.
For Habitat Metro Denver, ADUs align closely with our work to build and preserve affordable homeownership. They create new housing opportunities while helping existing homeowners maintain stability and remain rooted in the neighborhoods they love.
Above: homeowners and elected leaders.
What we’ve learned through the DHA ADU Program
Habitat Metro Denver has seen firsthand how ADUs can benefit both homeowners and renters through the Single Family + ADU Program.
Launched in 2019 by the West Denver Renaissance Collaborative (WDRC) in partnership with the Denver Housing Authority (DHA) and a network of community organizations, the program helps homeowners plan, finance, design, and build ADUs while keeping rents affordable. Habitat Metro Denver serves as the program’s construction partner.
The program initially focused on nine west Denver neighborhoods experiencing gentrification and housing instability. As interest in ADUs grew and local regulations evolved, opportunities expanded beyond the original pilot area to reach homeowners throughout Denver.
One of the program’s most successful innovations has been the development of seven pre-approved ADU designs. Created through a collaboration between Habitat Metro Denver and the American Institute of Architects, these plans range from studio units to three-bedroom homes. Because the designs are already approved by city building regulators, homeowners save both time and money on architecture and permitting costs.
The program also illustrates the importance of partnership. DHA identifies and qualifies homeowners, and community partners provide financial counseling and support, and Habitat Metro Denver manages construction. Together, these organizations help homeowners navigate what can otherwise be a complex process.
The impact can be seen in stories like Jose’s, where an ADU brought family members closer together while creating long-term housing stability. Experiences like these demonstrate that ADUs can help families remain connected, financially secure, and rooted in their communities.
Policy momentum is growing: Major ADU milestones in Colorado
As communities began seeing the benefits of ADUs firsthand, state and local leaders also took steps to make them more accessible.
State of Colorado
City & County of Denver
These milestones are helping more homeowners explore whether an ADU could be the right solution for their property, family, and financial goals.
Podcast feature: ADUs in Colorado’s housing conversation
Housing leaders increasingly see ADUs as an important part of a broader affordability strategy.
That growing recognition was highlighted when Habitat Metro Denver and the Denver Housing Authority were featured on Colorado Housing and Finance Authority’s podcast, The Buildout. In the episode, Small But Mighty: How ADUs Are Increasing Housing Supply, housing leaders discussed how these small homes can help address Colorado’s housing shortage while supporting long-term community stability.
The episode also highlighted how partnerships between organizations such as Habitat Metro Denver and the Denver Housing Authority are helping transform policy changes into real housing opportunities for Colorado families.
What’s next?
While recent progress is encouraging, there is still significant work ahead to address Colorado’s housing needs.
Building an ADU remains a major investment for many homeowners. Continued financing options, public support, and collaboration among nonprofits, government agencies, lenders, and community partners will be essential to making these projects accessible and affordable.
Habitat Metro Denver remains committed to working alongside homeowners and partners to expand access to ADUs and the housing stability they create. As awareness grows and regulations become more supportive, there is an opportunity to build on the momentum of recent years and help more families benefit from these flexible housing solutions.
The progress of ADUs as a housing solution in Colorado demonstrates what is possible when nonprofits, government agencies, homeowners, and community partners work together toward shared housing solutions.
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