Beyond the Nursing Home: How ADUs Help Denver Families Keep Aging Parents Close

An idea of an ADU

Many older adults want to stay in their long-time homes, but this could be cost-prohibitive. How? Consider this scenario: their home is 3 stories, meaning they have to walk the stairs regularly. Affording two chairlifts may be too costly for a homeowner, which means they must climb up and down stairs. 

Maybe they live by themselves, which can cause issues like loneliness or worry about their well-being. 

Or possibly, they might have some memory loss due to age (not Alzheimer’s or dementia, which is completely different), and they no longer want to live alone, but they don’t want to infringe on their children or friends. 

What options are there?

Retirement home costs per year range from about $36,800 for basic independent living to over $135,500 for a private nursing home room, depending primarily on the level of medical care and daily assistance required. For some older adults, those might be better options.

Given the high cost of retirement facilities and nursing homes, a different option for older adults and their families is to build an ADU, an Accessory Dwelling Unit. This is a small, independent home that shares the lot with a main house. Types of ADUs include: detached backyard cottages, attached additions, and internal conversions. 

Could an ADU be the right answer?

Common Types of ADUs

• Detached: Stand-alone backyard cottages or separate small houses.

• Attached: Additions built onto the side or back of the main home.

• Internal: Converted spaces inside the primary house, like basements, attics, or garages. 

  
  

Main Uses and Benefits

• Extra Income: Renting out the unit for monthly cash flow.

• Family Space: Housing aging parents or adult children close by while keeping privacy.

• Property Value: Adding overall equity and usable space to a residential lot. 

  
  

General Costs and Rules

• Costs: Garage conversions often range from $150,000 to $250,000+, while new detached builds range from $170,000 to $500,000+ depending on size and location.

• Permits: Local city rules apply for size limits, utility hookups, and zoning allowances. 

  
  

For less than the cost of a home in the Denver-Metro area, an ADU can be built to house older adults, keeping them close to family and independent. 

Key Size and Design Limits in Denver

These sizes and design limits only apply to the City and County of Denver. For those interested in ADU requirements, check your local county. 

• Square Footage: Capped at a maximum of 1,000 square feet.

• Height: Detached ADUs are limited to 1.5 stories and 24 feet.

• Location: Detached units generally must fit within the rear 35% of the lot depth. 

  
  

Permitting and Regulations

• Permits Required: You must secure zoning, building, and sewer/drainage permits through the Denver e-permits system.

• Parking: The city does not require extra off-street parking spaces for an ADU.

• Rentals: Long-term rentals (30+ days) are permitted, but short-term rentals require a separate city license.

• Property Sales: An ADU cannot be sold separately from your main house. 

  
  

Benefits of ADUs for Aging Family Members

• Independence: Seniors manage their own daily schedules and personal space, yet are close enough to family and friends.

• Family Support: Caregivers are close enough to help when needed, but everyone has privacy and space.

• Familiar Neighborhoods: Older adults avoid forced moves away from their local community and friends.

• Financial Planning: Older adults do not have to worry about the cost of retirement facilities or additional bills, allowing them to extend their retirement checks and not worry as much about money. 

  
  

Cons of Living in an ADU

• Space: There is less space, so downsizing is important. Even at 1000 square feet, an older adult (or two) must be able to navigate the space safely. It can be difficult determining which items stay and which go. Also, remember to consider vehicles. Where will the ADU tenants park? 

• Privacy: An ADU's proximity to neighbors can be difficult. It will take time and patience to determine boundaries for all involved parties. 

• Bills: Determining utility bills. This is a necessary discussion between parents and children. How will the utility bills be paid and by whom? This should be determined before building the ADU.

  
  

Aging in place doesn't have to mean choosing between an unaffordable retirement facility and a house that no longer works for your loved one's needs. An ADU offers a middle path, one that keeps family close, preserves independence, and can ease the financial pressure that comes with long-term care. It's not without its challenges, but for many families, it's proving to be a practical way to support aging parents without uprooting them from the life they know.

If you're weighing your options for an aging family member, now is a good time to start exploring what's possible on your property. Contact me to talk through zoning requirements, cost estimates, and whether an ADU could be the right fit for your family.