Denver homeowners’ attitudes changing on multifamily units in their neighborhoods

Denver residents are increasingly open-minded about letting more affordable housing options in their residential neighborhoods, according to a recent survey by online real estate company Zillow.

A whopping 73% of Zillow survey respondents in Denver supported the accommodation of accessory dwelling units, or ADUs —  these are accessory apartments or secondary suites and are sometimes called granny flats.

Sixty-three percent supported permitting duplexes and triplexes. Almost 80% of respondents back either ADUs or duplexes and triplexes.

Prices in Denver’s housing market are skyrocketing, pushed up in no small part by a limited supply of dwellings. The median closing price for a residential home stood at $602,750 in March – the highest number on record, the Denver Metro Association of Realtors reported. With the rising costs comes a shift in homeowner mindsets, who appear to be more accepting of having multi-family units in their neighborhoods.

Some of the city’s neighborhoods, including downtown and Capitol Hill, have already embraced the need for more housing by converting historic buildings and mansions into apartments. For instance, Midland Lofts at 444 17th St in downtown’s Central Business District used to house one of the state’s largest banks, according to Denver High-Rise Living.

Still, the lack of cost-effective housing options is felt nationwide, with a shortage of more than seven million affordable homes for around 10.8 million “extremely low-income families,” according to the National Low Income Housing Coalition. One of the nonprofit organization’s solutions to the problem is to promote equitable access to stable, affordable housing.

“We’ve seen a shift nationally over the last five to 10 years to try and allow more density in some of these single-family neighborhoods,” said Craig Ferraro, adjunct professor in real estate at the University of Colorado. He highlighted Minneapolis as the first major U.S. city to eliminate single-family zoning.

However, Ferraro doesn’t see Denver following Minneapolis’ lead, as he considers it “a bridge too far” for residents. Instead, he estimates Boulder would be the Colorado city most likely to do so.

He said a traditional attitude still persists: NIMBYism, which stands for “not in my back yard.”

“Historically, it’s been because you don’t know what the impacts are going to be from additional density,” Ferraro said, pointing to potential parking issues as an example. “The stereotypical reason why people are NIMBYs is because – especially if you’re bringing in lower-priced housing – you’re bringing in people who are different than they are, and it’s the unknown.”

In Denver, 67% of survey respondents agree that allowing duplexes and triplexes in residential neighborhoods would have a positive impact on the availability of more affordable housing options, while 66% think it would benefit neighborhood amenities, such as parks, restaurants and community centers.

Denverites are also becoming more tolerant in allowing homeowners to convert their homes to add additional housing units, with 57% in support this year compared to 54% in 2019.

The Zillow survey included more than 12,000 adults, and spanned across 26 U.S. metropolitan areas. It was conducted from January through March.