Accessory Dwelling Units and the Benefits for Homeowners - F9 Productions

Accessory Dwelling Units and the Benefits for Homeowners


The concept of Accessory Dwelling Units (ADUs) has gained significant traction in recent years. ADUs offer homeowners a versatile solution to expand their living space, generate additional income, and to improve their properties. This blog aims to shed light on what ADUs are, delve into ADU regulatory requirements, their construction types, to explore the associated costs with these units, and to highlight the multitude of benefits they can provide homeowners considering developing and building a ADU on their property.

  1. What is an Accessory Dwelling Unit (ADU)?

An Accessory Dwelling Unit, commonly referred to as an ADU, is a secondary housing unit located on the same property as a primary residence. These units come in various forms, such as attached extensions to the primary residence or fully detached backyard cottages or even converted existing garages.  Converting existing garages into ADUs can occur by means of retrofitting a single-story garage or by adding a second story addition onto the top of existing single story garage.

The primary purpose of an ADU can range from generating rental income to providing accommodation for family members or serving as a dedicated home office or creative studio. Their flexibility and functionality make ADUs an attractive option for homeowners seeking to optimize their property’s potential. With many homeowners currently in “golden handcuffs” ADUs offer a new and often affordable way create new space for their existing homes without having to move from their existing home and take on a new mortgage with a higher interest rate.

  1. Understanding ADU Zoning and Building Regulation Requirements

When considering the addition of an ADU to your property, it’s essential to first understand the specific ADU zoning and building regulation requirements set forth by local zoning laws and building codes. These regulations often dictate the size, height, and placement of the unit, ensuring it complies with neighborhood standards. Homeowners must also consider practical aspects such as utility connections, parking provisions, and accessibility.

Engaging early on with an experienced architect who routinely designs custom ADUs is crucial to the successful planning and execution of an ADU project. A simple phone call to an ADU architect can save the average homeowner hours of time, thousands of dollars, and start the project off on the right path from the very beginning.  Most architects are happy to take your call gratis and provide you with insight into the pathway for properly designing and building your custom ADU.

Finally, the homeowner should make sure that, if applicable, they and their ADU architect consider any HOA standards in the design of the ADU.  Many HOAs allow for an ADU but first require that the ADU be approved by the HOA’s architectural review committee before the architect and homeowner can proceed with applying for zoning and building department approval. Identifying this critical step early on in the process can and will save the homeowner valuable time and money.

  1. ADU Design and Construction Phase

The design and construction process of an ADU involves several key steps, beginning with the design phase, where the unit’s layout and aesthetics are determined by the ADU architect and structural engineer. This phase is followed by applying for and securing the necessary zoning and building permits, which require adherence to local zoning and building codes. During the construction phase, homeowners must make the final critical decisions regarding materials, utilities, and their final construction budget as well as how to financing it all in order to ensure that the ADU meets their needs and preferences. A well-executed ADU construction process results in a unit that not only complements the main residence but also adds value to the property.

  1. How Much Does an Accessory Dwelling Unit Cost?

The cost of constructing an accessory dwelling unit can vary widely depending on factors such as size, location, and the choice of materials. On average, homeowners can expect to incur costs in Colorado, in 2023, for example, to begin at $300 per each new square foot of ADU to be built for a fully functional ADU. While this may seem like a substantial outlay, it’s important to consider the long-term financial benefits, such as rental income and increased property value. Additionally, various financing options are available to make ADU construction more accessible, including loans, grants, and home equity lines of credit.

  1. What are the Benefits of ADUs?

The benefits of accessory dwelling units extend beyond financial gains. ADUs provide a source of rental income, which can help homeowners offset mortgage payments or fund other expenses. They also contribute to increased property value, making them a wise long-term investment. From a lifestyle perspective, ADUs can offer flexible living space for family members, guests, or tenants, and can support aging in place or multigenerational living arrangements. Furthermore, ADUs play a significant role in addressing housing shortages by providing affordable rental options and diversifying housing stock within communities.


ADUs represent a multifaceted solution for homeowners looking to enhance their property’s value and functionality. By understanding the intricacies of ADU construction, requirements, and costs, homeowners can make informed decisions about adding an ADU to their property. The array of benefits associated with ADUs as discussed in this blog make them an attractive option for those seeking to optimize their residential investment. ADUs are not just a trend but a valuable addition to the housing landscape, offering both financial and lifestyle benefits. As the popularity of accessory dwelling units continues to grow, they are poised to play a pivotal role in shaping the future of housing and community development throughout Colorado and the United States beyond.

If you’re looking to design and build an ADU of your own then get in touch with us today!