Close-up of a house key on a wooden table, symbolizing home ownership and new housing opportunities.

13

Denver’s ADU Boom: What It Means for Homeowners and How River North Basement Company Can Help

Denver homeowners are increasingly pursuing ADUs as permit activity climbs—the city expects to surpass 100 ADU permits this year following the city’s 2024 code reform.

Accessory Dwelling Units—better known as ADUs—are having a moment in Denver. Thanks to recent legislative changes at both the state and city level, it’s easier than ever for homeowners to build an ADU, and permit numbers are climbing fast.

According to Denver7, the city expects to surpass 100 ADU permits this year, following a major zoning change in late 2024 that opened up far more neighborhoods to this kind of construction. For homeowners, that means new opportunities for extra living space, rental income, and property value growth—and for River North Basement Company, it’s an exciting time to help turn those opportunities into reality.

Why ADUs Are on the Rise in Denver

State Law Opens the Door

In May 2024, Colorado passed House Bill 24-1152, requiring many urban municipalities—including Denver—to allow ADUs in areas zoned for single-unit detached homes by June 30, 2025. The bill goes beyond zoning: it provides millions in funding to reduce permit fees and offer financial assistance, including:

$5 million for fee reductions and technical help.
$8 million for loan assistance, down-payment support, and grants for low- to moderate-income borrowers.

These measures mean fewer financial roadblocks for homeowners looking to build.

Denver’s Local Boost

On November 18, 2024, Denver City Council passed a citywide ADU measure, expanding ADU eligibility from 36% of residential lots to about 70%. The ordinance took effect December 16, 2024, making it far easier for homeowners to start their projects. This change alone is driving much of the current surge in permits.

The Benefits of Building an ADU

Whether you’re thinking of a detached backyard cottage or a cleverly designed basement apartment, an ADU offers a variety of advantages:

Rental Income – Offset your mortgage with monthly rental payments.
Family Flexibility – Create independent space for aging parents, college-age kids, or visiting relatives.
Increased Property Value – ADUs are a sought-after feature in Denver’s competitive housing market.
Efficient Land Use – Maximize the potential of your existing property without needing to buy more land.

Why Basement ADUs Make Sense

While many people think of ADUs as stand-alone backyard units, basement conversions are often the smartest route:

Lower Construction Costs – You’re building within an existing structure.
Faster Permitting – Fewer structural changes can mean quicker approvals.
Year-Round Comfort – Well-insulated basements offer consistent temperatures in all seasons.
Discreet Footprint – Keep your property’s exterior largely unchanged while adding livable space.

At River North Basement Company, we specialize in transforming underused basements into beautiful, functional ADUs. From navigating Denver’s updated permitting process to delivering high-quality finishes, we handle every step.

Navigating the New ADU Landscape

With the new laws and local zoning updates, the process for building an ADU has changed—and that’s a good thing. But it also means:

Understanding the specific requirements for your lot and neighborhood.
Preparing accurate plans to meet code.
Making informed design choices to optimize your space and budget.

Our team stays up to date on Denver’s evolving ADU rules so you don’t have to. We’ll guide you through permitting, design, and construction—ensuring your project is both compliant and perfectly tailored to your needs.

Start Your ADU Journey Today

Denver’s ADU surge is more than a passing trend—it’s a long-term shift in how our city is using residential space. If you’ve been considering adding an income-producing unit, creating a private suite for family, or simply maximizing your home’s potential, now is the time.

River North Basement Company can help you turn your basement into a stunning, code-compliant ADU that works for your lifestyle and budget.

Call us today to schedule your consultation and see how we can help you make the most of Denver’s new ADU opportunities.

Book a Consultation