New Colorado Springs ADU Rules Passed—What Homeowners Need to Know

Colorado Springs homeowners just got new opportunities—and new responsibilities—when it comes to building Accessory Dwelling Units (ADUs), also known as "granny flats" or "casitas." On March 25, 2025, the City Council voted 5-3 to approve a new ordinance updating how and where these smaller secondary units can be built.

ADUs have become a hot topic across Colorado, especially after last year’s state bill encouraging major cities to expand access. This new local ordinance walks a careful line, aiming to meet state requirements while balancing neighborhood and HOA concerns.

🛠️ Key Highlights of the New ADU Rules:

• Expanded Zoning: ADUs are now allowed in all residential zones, including single-family neighborhoods.

• Owner-Occupancy Requirement: Only homeowners living at the address can apply to build an ADU.

• Size & Height Limits: Units are capped at 50% of the main home’s size or 1,250 sq ft, whichever is smaller. Height maxes out at 16 feet.

• Wildfire Zone Restrictions: In high-risk areas on the west side (Wildland Urban Interface), ADUs must be integrated into the existing home—no new square footage allowed.

• Parking Requirement: Each ADU must provide one off-street parking space.

One proposed change—submitted last-minute by Councilmember Dave Donelson—would have required homeowners to live in one of the units long-term, not just at the time of application. While this wasn’t approved in the first reading, I hope the council reconsiders this thoughtful addition at the second reading on April 8.

📌 Why does this matter? Real estate investors may see the expanded ADU rules as an opportunity to rent out both the primary home and the ADU, which could:

• Push housing affordability further out of reach for some buyers

• Increase the number of rental units on the market

• Possibly apply downward pressure on rental rates in the short term

• Or, conversely, push housing costs up due to increased demand for ADU-eligible properties

There's still time for thoughtful refinement. Allowing more housing flexibility is important, but ensuring these units serve local families—not just investors—will be critical for long-term affordability.

🌟 Curious how these new rules could affect your home’s value or buying strategy? Let’s talk about smart ways to navigate these updates in Colorado Springs real estate.

📩 Reach out to start the conversation.