Colorado ADU Laws Open New Horizons

Bradley Evans | 11.8.2024 | 5 min.

Where did it start?

With housing becoming a higher demand in Colorado, ADUs have been becoming more of a consideration for many Coloradans. Coming into effect January of 2025, Colorado House Bill 24-1152 signed by Jared Polis this year will allow ADUs to over rule previous blanket bans across the state (meaning an ADU can be built if there is room), and allows for persons to own the ADU without needing to own the attached home. Additionally, ADUs will not be restricted by design and architectural requirements that a main dwelling is usually forced to adhere to. With this new legislation, purchasing and creating a new ADU for your property will be significantly easier in comparison to prior years.

– Jared Polis Summit – Western Area Power’s Photo

Homes that sold above list price likely received multiple offers. A high or growing percentage of homes selling above list price indicates that the housing market is competitive and bidding wars are becoming more common. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive.

Redfin.com

Interested in an ADU?

You can rest assured that Evans Construction will use our thorough understanding of ADUs, carpentry, and building expertise to help you on your path to find the perfect ADU for you.

Some of the facts.

Although, this legislation has not reached more rural areas of Colorado, we can expect to see more ADUs being built in residential and urban areas. Colorado Public Radio shares that Jared Polis clarified that despite this not being a cure-all that the Colorado housing crisis will “start getting better rather than worse.” Claiming that ADUs will provide “more affordable housing close to job centers, less traffic, and transit-oriented communities, along with more and better transit to help serve people who live there”. This is greatly important in the Colorado Springs, and Denver area as we continue to rise in population each year. USA Facts state that “In Colorado between 2010 and 2022, El Paso County had the largest growth with 113,479 more residents”. With these growing numbers, ADUS provide a unique opportunity to offer more affordable housing across the state, and allow home owners to build ROI through additionally properties.

What does this mean?

Now more than ever, it is the perfect time for Coloradan individuals to look into building or purchasing ADUs. With the ability to build equity, improve ROI or even have a more affordable living situation, ADUs will become a more competitive form of housing in the suburban and urban areas of Colorado. With the legislation coming into practice this upcoming January, Coloradans can prepare by researching local contractors, and builders to inquire about estimates for future ADUs.

Unfortunately, this bill will not be applying to rural areas of Colorado, but will focus on metro areas. Luckily, majority of Colorado’s population lies within the suburban to urban areas, and these ADUs can range in dimension and architectural build to fit into metropolis needs. In certain municipalities, there are some regulations to keep in mind when pursuing an ADU. For example, some may require that the owner of the future ADU must live in the primary property when applying for a license or permit for the ADU. Additionally, fees are still apart of the equation while looking at these nifty add-ons. Don’t let these facts dissuade you, as ADUs can be a fantastic investment in the long run and function as property that can be rented out, and boost the Colorado Housing market.