This is the sixth and final installment in a monthly series on Accessory Dwelling Units. The article is by John Phillips with Verdant Living. It was published on Oct. 15, 2025.
ADUs are detached accessory or additional dwelling units. They are also called mini homes. Common examples include a walk-out basement with a secure entrance, a backyard unit, or an apartment above a detached garage.
ADUs use existing residential property to create a second living space. They can provide housing without major neighborhood disruption. The article describes this as “gentle” density.
Two major attractions are lower construction cost and the use of space already on the property, such as a backyard or unfinished basement. Zoning restrictions have also been loosening, and acceptance of ADUs has been growing.
The article says ADUs are a helpful part of the housing solution, but only a small piece of it. Adoption still depends on individual homeowners, their finances, and their sites.
Financing has been difficult because mortgage lenders had little experience with ADUs, but that is changing. Modular construction can also work well for ADUs, depending on the situation.
The article says a 2025 Colorado law removed the owner-occupancy requirement. Owners do not have to live in either unit.
The article encourages homeowners not to assume they cannot finance an ADU. It recommends speaking with a knowledgeable finance professional and looking into programs for their situation.
It also notes that if an ADU meets a real need, such as housing for an aging relative, the payoff can be significant. The homeowner may gain income, create needed housing, and build wealth.
| Question | Answer |
|---|---|
| Will ADUs really help with the housing shortage? | Yes. They add gentle density without changing neighborhood character much, but they are not a silver bullet. |
| Can I finance an ADU if I’m on a moderate or fixed income? | Maybe. The article says not to assume you cannot qualify and recommends speaking with a knowledgeable finance professional. |
| Do I have to live on the property, and is modular allowed? | Rules vary. In Colorado, the 2025 law removed the owner-occupancy requirement. ADUs may be site-built, converted from existing space, or modular. |