Cost to ADU / In-Law Suite Construction in Denver, CO (2026)
If you’re budgeting a adu / in-law suite construction in Denver, most projects run $63,035-$262,644, 5% above the $150,000 national average. What moves that number most is usually one thing: ADU Type. On its own it can swing the cost by $30,000 - $250,000, so that’s the decision to slow down on before you sweat the smaller stuff.
Easiest place to save: Choose a garage conversion over new construction. The cost difference is $50,000-$150,000 and the result is functionally the same - a legal dwelling unit that generates rental income.
$63,035-$262,644 in Denver
5% above the national average · 1.05x cost multiplier
Expect to pay $63,035-$262,644 for a adu / in-law suite construction in Denver, about 5% above the national benchmark. The Mountain West region's contractor market and material costs account for most of this difference. The detailed breakdown below shows how budget, mid-range, and premium projects compare at Denver prices.
Cost Breakdown in Denver
| Line Item | Low | Mid | High |
|---|---|---|---|
| Cost per sq ft | $158 | $263 | $420 |
| Materials | $29,680 | $68,900 | $127,200 |
| Labor | $33,227 | $72,685 | $114,219 |
| Permits | $4,240 | $8,480 | $15,900 |
| Design | $5,300 | $10,600 | $21,200 |
| Total | $72,447+5% vs. national avg | $160,665+5% vs. national avg | $278,519+5% vs. national avg |
Budget
Garage conversion ADU (400 sq ft) - kitchen, bathroom, bedroom, electrical upgrade, no exterior changes. Most affordable ADU type.
Mid-Range
Detached backyard ADU (600 sq ft) - new construction on concrete foundation, full kitchen, bathroom, bedroom, separate utilities, standard finishes
Premium
Custom detached ADU (800+ sq ft) with high-end finishes, vaulted ceilings, full kitchen, 1.5 bathrooms, separate utilities and address, premium landscaping
Material Options
Material prices below are national averages; availability in Denver may shift costs slightly.
| Material | Cost/Unit | Best For |
|---|---|---|
| Garage Conversion ADU | $80 - $200 per sq ft | Homeowners with detached garages who want the lowest-cost path to rental income or multi-generational livingLowest cost, structure exists, fastest permitting in many states, minimal site work |
| Basement Conversion ADU | $100 - $225 per sq ft | Homes with full-height unfinished basements in markets where ADUs are in demandUses existing space, natural privacy from main house, lower cost than new construction |
| Above-Garage Addition ADU | $175 - $325 per sq ft | Properties where lot coverage is maxed out or where separation from the main house is a prioritySeparate from main house living area, good privacy, no lot coverage increase |
| Prefab / Modular ADU | $150 - $300 per sq ft (including site work) | Markets where prefab ADU companies operate and homeowners who want faster construction timelinesFaster construction, predictable pricing, some high-quality options, off-site quality control |
| Custom Stick-Built Detached ADU | $200 - $400+ per sq ft | Homeowners who want a long-term investment that looks like a natural part of the propertyFully customizable, can match main house architecture perfectly, highest long-term value |
Other Projects in Denver
Denver Estimate
Typical Range
$63,035-$262,644
vs. National Average
5% above national
Cost Multiplier
1.05x
Cost Per sq ft
$158-$420
This 1.05x estimate prices Denver labor from BLS Occupational Employment and Wage Statistics (May 2025) and applies a lighter regional adjustment to materials and permits, which vary less by metro than labor does. Actual bids vary by contractor, project scope, and timing.
See national average costs →