Adding space to your home can make a huge difference in how you live—but figuring out how to add that space is where most people get stuck.
Should you build an ADU (Accessory Dwelling Unit) in your backyard? Or just add one bedroom or two bedroom to your existing house?
An ADU (Accessory Dwelling Unit) is a separate, self-contained living space with its own kitchen, bathroom, and entrance—ideal for rentals or independent living. A home addition expands your existing home by adding extra rooms or square footage but shares the same utilities and access. ADUs offer more privacy and rental potential, while additions are typically less expensive and easier to permit.
I’ve worked with homeowners across Colorado Springs who’ve debated this very question. Both ADUs and Home additions can add value to your property and improve your quality of life, but they serve very different purposes. Before you make a decision, here’s what you should know.
Start with your goal. Are you making room for extended family? Do you want extra rental income? Need more space for yourself?
Home additions are part of your main home. You might be expanding your kitchen, adding a new bedroom, building a bigger family room, or finishing a sunroom. The space becomes part of your existing living area. You’re not adding a second kitchen or separate entrance.
ADUs, on the other hand, are fully separate living units. They usually include a kitchen, bathroom, bedroom, and living space. They can be detached (like a backyard cottage or garage apartment), attached (like a basement or over-garage suite), or interior conversions (like a split-level floor with its own entrance).
If you want privacy or rental potential, ADU is the winner. If you just want more space for your family, a home addition might make more sense.
ADUs are ideal when you need a separate space for someone to live independently. That could be an aging parent, a college-age child, or even a long-term tenant.
They have their own entrance, their own kitchen, and their own bathroom. The people living there can come and go as they please—without walking through your living room.
Additions aren’t set up for independence. Even if you add a bedroom and bath, it’s still part of your home. You’ll all be using the same main entrance, same kitchen, same HVAC system.
If privacy is high on your list, an ADU gives you a clear boundary between households.
Here’s where things can get tricky. Not every property can have an ADU.
Zoning laws in your city or county will dictate whether ADUs are allowed—and under what conditions. In Colorado Springs, for example, your property needs to be in a zone that allows ADUs (often R1.5, R2, or higher), and you may need to follow rules around setbacks, lot size, parking, and building height.
Additions are typically easier to get approved. As long as you’re within your property lines and meet height and coverage rules, it’s usually more straightforward.
Before you go too far with design plans, check your local zoning. At Giudice Builds, we always start with a feasibility check to avoid surprises down the line.
Home additions tend to cost less per square foot than ADUs. You’re not duplicating major systems (like a second HVAC unit or kitchen), and you’re connecting to existing utilities.
ADUs require more infrastructure. Even if it shares the same water and electrical supply, it still needs separate plumbing, walls, insulation, appliances, and often its own HVAC setup. Detached ADUs need foundation work and framing from scratch. That adds up.
But—ADUs offer long-term financial potential. You can rent them out, either short-term or long-term, and that income can help offset the cost over time.
If your budget is tight, a simple addition may be the better option. If you can invest more now and want the rental return later, an ADU is worth considering.
ADUs can be incredibly flexible over time. Maybe you start by housing a parent, then later turn it into a rental. Or maybe it’s a home office now, and later it becomes a guest house. That kind of independence and versatility adds long-term value.
With additions, you get usable space—but not necessarily flexible space. Once you turn your two-bedroom home into a three-bedroom, it stays that way. The value increases, but you won’t get passive income from it.
Think about how your life might change in 5 or 10 years. That may guide your choice more than today’s needs.
ADUs can boost your property value—especially in markets where multigenerational living and rentals are in high demand. Buyers love having the option of a legal, income-producing unit. That said, appraisers and lenders handle ADUs differently, so the value can vary.
Additions are more predictable when it comes to resale. You’re increasing the square footage of the main house, which almost always raises the value. You also avoid the complexity of separate unit valuations.
If your plan is to sell in the short term, additions may feel safer. If you’re building long-term equity or want to create a rental stream, ADUs are the better play.
There’s no one-size-fits-all answer, but here’s how I guide my clients:
Choose an ADU if:
Choose a home addition if:
Here at Giudice Builds, we’ve helped clients through both paths—from full garage ADUs to seamless kitchen and living room expansions. If you’re in Colorado Springs or the surrounding areas and trying to figure out which option is right for your home, I’d be happy to help you weigh the pros and cons based on your exact lot and goals.
Giudice Builds was one of the best experiences I had in having something built in my home.