Colorado Springs Backyard Cottage ADU
Project Overview
This Colorado Springs ADU marked Prenvalley Builders’ first accessory dwelling unit project and laid the foundation for their future ADU expertise. Designed and built as a cozy backyard cottage, the space balances efficient planning with comfortable, independent living. This early project represents the beginning of Prenvalley’s long-term commitment to thoughtful, high-quality ADU construction in Colorado.
Project Details
Size: 550 sq ft
Location: Colorado Springs, Colorado
Architectural Design: Prenvalley Builders
Our Approach
Prenvalley Builders approached this ADU with a focus on efficient planning, clear communication, and hands-on problem solving, navigating the process from design through construction. As their first ADU project, the team prioritized livability, durability, and code-compliant execution while building a strong foundation of experience. The lessons learned here continue to inform Prenvalley’s refined ADU process today.
Project Highlights
Prenvalley Builders’ first ground-up ADU project
Backyard cottage with independent living amenities
Efficient open-concept layout within a compact footprint
Full kitchen, bathroom, bedroom, and in-unit laundry
Vaulted ceilings to enhance light and comfort
Cottage-style exterior that complements the main home
Results
The completed ADU provides a comfortable, self-contained living space that feels both functional and welcoming. This project established Prenvalley Builders’ foundation in ADU construction and set the stage for a more refined, repeatable approach on future builds. The result is a thoughtfully built backyard cottage with lasting value for the homeowner.
Project Goals
Create a fully independent backyard living space
Maximize functionality within a compact ADU footprint
Ensure long-term durability and code-compliant construction
Provide comfortable, efficient living for everyday use
Establish a repeatable ADU framework for future projects
Common Questions about Accessory Dwelling Units
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This varies quite a bit throughout Colorado based on your city’s specific zoning guidelines. Our team are experts with zoning rules throughout the state and can provide you with a detailed breakdown of what’s possible.
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We usually get asked how much an ADU costs per square foot but this is the hardest metric for an ADU since the cost per square foot parameter can vary drastically based on the size. This is due to the fact that ADUs are small compared to normal homes and the cost per sq. ft. can vary dramatically due to the economy of scale factor. Also, most of the ADUs we build have unfinished garages which complicates that metric even further. We’ve found that ADUs in Denver can vary on average from $250k to $450k based on size, finish level, and site constraints.
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As of right now the average ROI ranges from 4 to 7 years until you begin seeing a net positive on your ADU investment which is based short term renting the space over that time. The problem with ADUs in Colorado is that there aren’t many comparables when appraisers are valuing these spaces so they are typically appraised at a lower value than they were built for. As more ADUs are built and sold with their primary homes, these numbers will improve so this ROI is very much temporary. As of now, ADUs are considered a long term investment and are definitely worth the consideration if you’re looking to hold onto your home for the long run.
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In our experience thus far, the scale of an ADU hasn’t been proven to be built better or more cost effective in a modular format. The modular ADU on paper seems like a great idea but all of the companies we’ve seen provide them are at a comparable price point if not higher and quality issues can occur due to manufacturing, delivery, and assembly issues. We view ADUs as custom small homes that need to be built with care and craftsmanship which can easily be lost in a mass manufacturing process.

