Starting February 15th, Fort Collins is making a significant change that could reshape its housing landscape for years to come. Under a new city policy, accessory dwelling units (ADUs) will be allowed on any single-family lot throughout the city. This change aligns with Colorado’s House Bill HB24-1152, mandating local governments to permit ADUs. But what does this mean for homeowners, renters, and the future of our community? Let’s break it down.
What Are ADUs and Why Do They Matter?
ADUs, often referred to as “granny flats” or “backyard cottages,” are smaller, self-contained housing units located on the same lot as a primary residence. They’ve gained popularity as a way to increase housing density without sprawling development and to provide flexible living arrangements for multigenerational families, renters, or short-term guests (short term rentals are explicity prohibited in Fort Collins ordinance).
In Fort Collins, this policy update means that the city’s estimated 40,000+ single-family detached homes now have the potential to include an additional living space. This development opens up new opportunities for homeowners while addressing broader housing challenges.
Immediate Impacts on the Housing Market
Rental Market Expansion
One of the most immediate impacts of this policy change will likely be an increase in rental inventory. With the ability to add rentable units, homeowners may invest in building ADUs as an income-generating opportunity. This could help alleviate some of the pressure on the rental market, potentially slowing rent increases and providing more affordable options for renters.
Affordability Concerns
While an expanded rental market is promising, there’s also concern that property values may rise as homes with ADUs become more desirable. For homeowners, this could mean an increase in equity, but for potential buyers, it could make entering the market even more challenging.
Long-Term Implications for Fort Collins
Urban Density and Infrastructure
Allowing ADUs on all single-family lots will inevitably increase population density in established neighborhoods. While this supports sustainable growth by making better use of existing land, it also raises questions about infrastructure capacity. Will the city’s utilities, roads, and public services be able to keep up with the demand? Additionally, parking could become a challenge in areas where ADUs significantly increase the number of residents.
Neighborhood Dynamics
ADUs could alter the character of some neighborhoods. While they’re often designed to blend in with existing homes, the increased density might not be welcomed by all residents. On the flip side, ADUs can foster diversity by creating more affordable housing options and supporting multigenerational living arrangements.
Economic Opportunities
For homeowners, ADUs offer an opportunity to boost household income by renting to long-term tenants (30+ days). This could be especially beneficial for retirees looking to supplement their income or families saving for future expenses.
Practical Considerations for Homeowners
If you’re a Fort Collins homeowner considering adding an ADU, here are some key things to know:
- Zoning and Permits: The city’s updated codes will simplify the process of building ADUs, but you’ll still need to follow permitting procedures and meet specific design and safety standards.
- Costs: Building an ADU is a significant investment. Costs (in my opinion) can range from $100,000 to $200,000+, depending on the size, design, and complexity of the project. Financing options, such as home equity loans, might help make the project more accessible.
- Design: ADUs should complement the primary residence and neighborhood aesthetic. Make the home feel like it was always supposed to be there.
- Long-Term Planning: Think about your goals for the ADU. Will it be used for rental income, as a home office, or for family members? Your plans may influence the design and features you prioritize.
How Fort Collins Can Shape the Future of Housing
The impacts of allowing ADUs on all single-family lots will take time to fully materialize. Whether you’re a homeowner, a renter, or simply a Fort Collins resident, the rollout of this policy is something to watch closely as it unfolds.
What do you think about Fort Collins’ decision to allow ADUs citywide? Share your thoughts in the comments below!
