Grand Junction just recorded a 130% jump in new accessory dwelling units since 2023, turning backyards into real solutions for the western Colorado housing crunch. City officials say their aggressive support program is now one of the most successful in the state.
The numbers are stunning and the momentum is only growing.
Homeowners are adding granny flats, studio apartments, and tiny cottages faster than anyone predicted. More applications have already rolled in for 2026 than the city saw in the entire first half of 2025.
What Exactly Is an Accessory Dwelling Unit?
An ADU is a complete second home on the same lot as an existing house. It can sit above a garage, stand alone in the backyard, or be carved out of a basement.
These units come with their own kitchen, bathroom, and entrance. Sizes typically range from 400 to 1,200 square feet. Rent usually falls between $1,200 and $2,000 a month in Grand Junction, far below the $2,400 average for a new two-bedroom apartment downtown.
Homeowners gain rental income. Young families find starter homes. Aging parents stay close but independent. The city adds housing without sprawling into open space.
How Grand Junction Removed the Roadblocks
Most Colorado cities still make ADUs painful to build. Grand Junction decided to lead instead.
The city slashed parking requirements, raised the maximum size to 1,200 square feet, and created pre-approved plans that cut permitting time in half.
Then they went further.
They launched free workshops and started the ADU Production Program, which pays homeowners up to $25,000 each to help cover construction costs.
Ashley Chambers, the city’s Housing Manager, says the goal was simple: “Make it so easy that any homeowner with a decent backyard can say yes.”
The strategy worked.
The Numbers Tell the Story
From 2023 to now, permitted ADUs rose from roughly 30 per year to nearly 70, a 130% increase that surprised even city staff.
The new $450,000 war chest, $325,000 from a state grant plus a $125,000 city match, will push the program into overdrive.
In past years the city funded 10 to 17 units. This year they expect to bankroll 34 to 50.
That single change could add as many new homes in 2025 as a medium-sized apartment complex, all without paving over a single new acre of land.
Why This Matters to Every Resident
Grand Junction’s median home price crossed $425,000 last year. Teachers, nurses, and baristas keep getting pushed east toward Clifton or north to Fruita.
ADUs fight back in three big ways:
- They add homes where infrastructure already exists
- They let longtime owners age in place and cash-flow their retirement
- They keep young people from leaving the Grand Valley
One recent example: a retired couple on North Avenue built a 680-square-foot ADU last fall. They now rent it to a Mesa County Valley School District teacher for $1,500 a month. The extra income covers their property taxes and then some.
Multiply that story fifty times in 2025 and you start to bend the housing curve.
Next Steps for Homeowners Ready to Build
The city’s first big workshop of the year happens March 12 at the Lincoln Park Barn. Everything, financing, design, permitting, contractor lists, will be covered in one evening.
Applications for the 2025-2026 funding round are already open and moving fast.
Grand Junction didn’t just talk about missing middle housing. They built the best ADU program in Colorado and proved it works.
The backyard revolution is here, and it’s just getting started.
What do you think, will we see 100 new ADUs a year by 2027? Drop your thoughts below and tag #GrandJunctionADU on X or Instagram if you’re watching this story spread.
