Accessory Dwelling Unit (ADU) Construction in Denver, CO — Costs $73,590 to $429,275

What does accessory dwelling unit (adu) construction cost in Denver? Average $183,975, ranging $73,590–$429,275. Labor runs $38.49/hr locally — 23% above the national average. Free breakdown with material + labor split.

Denver, CO Market

+23% vs national

Labor Rate

$38.49/hr

Material Index

117

Avg Permit Cost

$2,288

Median Home Price

$482,996

As one of the largest metros in Colorado, Denver has a competitive contractor market with hundreds of licensed professionals. This typically gives homeowners more leverage on pricing, though high demand for renovations can offset that advantage. At 23% above the national average, Denver is one of the more expensive markets for home improvement — driven primarily by above-average labor rates in the region. The median home in Denver is valued at $482,996, putting this project at about 38.1% of home value — a moderate investment with a projected 80% ROI.

Low Estimate

$73,590

National: $60,000

Mid-Range

$183,975

National: $150,000

High End

$429,275

National: $350,000

Per Sq Ft

$307

National: $250

Duration: 6-18 months
DIY: Hard
Permits: Required
ROI: 80%

Accessory Dwelling Unit (ADU) Construction Cost Calculator for Denver

Adjusted for Denver's labor rate ($38.49/hr) and material costs (index 117).

50 sq ft1,000 sq ft

Mid-grade materials, good quality fixtures, standard options.

Estimated Total in Denver

$183,975

Based on 200 sq ft at mid quality, adjusted for Denver market rates.

Local Cost Breakdown

Labor (50%)$91,988

At Denver's average rate of $38.49/hr (28% above national avg)

Materials (50%)$91,988

Material cost index 117 (17% above national baseline of 100)

Accessory Dwelling Unit (ADU) Construction vs. Home Value in Denver

MetricDenverNational Avg
Accessory Dwelling Unit (ADU) Construction (Mid-Range)$183,975$150,000
Median Home Price$482,996$350,000
Project as % of Home Value38.1%42.9%
Estimated ROI80%80%
Median Household Income$76,237$75,000

What Affects the Price in Denver

  • 1Local labor rates ($38.49/hr in Denver)
  • 2Material cost index (117 vs national 100)
  • 3Attached vs detached
  • 4Size and bedroom count
  • 5Kitchen and bath quality
  • 6Local ADU regulations

Popular Upgrades

  • Full kitchen
  • Separate entrance
  • Solar panels for energy independence

Planning a Accessory Dwelling Unit (ADU) Construction in Denver

Building permits are typically required for a accessory dwelling unit (adu) construction in Denver. The average permit fee in this area is $2,288, though costs vary based on project scope. Permit fees in this market are above average — factor them into your total budget. Plan for 6-18 months from start to finish.

A accessory dwelling unit (adu) construction is a complex project best left to licensed professionals. In Denver, skilled contractors charge an average of $38.49/hr, and the specialized nature of this work means cutting corners on labor can lead to costly rework.

For the median Denver household earning $76,237/year, this project at $183,975 represents a significant investment. Consider financing options or phasing the work to spread costs over time.

Explore All Project Cost Guides

Compare costs across 120+ home improvement projects in 3,636 cities nationwide.

View All Project Costs

Frequently Asked Questions

Related Calculators