Backyard Density: How Denver Is Adding Housing Without High-Rises

Jan 23, 2026 | Home Investment & Strategy, Special Information

Denver’s housing shortage isn’t solved by skyscrapers alone. Increasingly, the city is turning to “missing middle” solutions that add housing while preserving neighborhood character.

Backyard density focuses on incremental growth rather than dramatic redevelopment.

What Backyard Density Looks Like in Practice

Common approaches include:

  • Accessory dwelling units
  • Carriage houses
  • Garage conversions
  • Lot reconfigurations

These options allow more housing without altering streetscapes dramatically.

Why This Appeals to Homeowners

For homeowners, backyard density can:

  • Create rental income
  • Support multigenerational living
  • Increase long-term property value
  • Provide flexibility without relocation

However, zoning, design, and occupancy rules matter.

Neighborhood Impacts and Buyer Perception

When done well, backyard density:

  • Supports affordability
  • Adds rental supply
  • Increases neighborhood vitality

Poorly executed projects, however, can hurt value — which is why permitting and design matter.

Investment Perspective

From an investor standpoint, backyard density:

  • Offers long-term income potential
  • Reduces land acquisition costs
  • Requires patient capital

Short-term rental expectations should be tempered.

Final Thoughts

Backyard density represents a middle path between stagnation and overdevelopment.

👉 Curious how zoning impacts value? The Living Colorado Team helps buyers and homeowners evaluate density opportunities responsibly.