EP 93: California vs Colorado ADUs: What Investors Need to Know

In this episode, I sit down with Chris Moore, third-generation builder, design-build expert, and founder of Prospect 38 Construction, to talk about the evolving ADU market in Colorado and how it compares to what we’re seeing in California.

We dive into the realities of building ADUs outside of California, including zoning changes, construction costs, political pushback, lending challenges, insurance concerns, and the growing demand for multi-generational living.

Chris shares firsthand insight from years of building custom homes, additions, and ADUs throughout the Denver metro area and mountain communities, including what types of ADUs are actually working in today’s market and why long-term appreciation may matter more than short-term cash flow.

We dive into:

• The biggest differences between ADUs in California vs Colorado
• How Colorado’s ADU laws and zoning regulations are changing
• Why some cities are pushing back on density
• The real construction costs behind detached ADUs and garage conversions
• Why multi-generational living is becoming one of the biggest drivers for ADUs
• The ROI conversation most investors overlook
• How lending, insurance, and utility infrastructure impact ADU projects
• Why small ADUs don’t always mean lower costs
• The challenges of balancing housing density with neighborhood character
• What investors should actually look for when evaluating ADU opportunities

This conversation goes beyond just ADU design and construction — it’s a deep dive into the future of housing, density, affordability, and how different states are approaching the housing crisis in completely different ways.

If you're interested in ADUs, real estate investing, zoning strategy, multi-generational housing, or understanding where the future of development is headed, this episode is packed with valuable insight.

@stephsellsADUs

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