Why More Buyers Are Exploring Homes with Guest Houses in 2025

In 2025, the Colorado housing market is seeing a unique shift—buyers aren’t just looking for a home; they’re looking for a property that can do more. One feature climbing to the top of many wish lists? Guest houses.

From charming backyard casitas to fully equipped accessory dwelling units (ADUs), homes with extra living spaces are becoming a hot commodity. Here’s why this trend is growing, and what it means if you’re buying or selling in Durango and across Southwest Colorado.

1. Multi-Generational Living Is On the Rise

With more families choosing to live under one roof—or at least on one property—guest houses are a perfect solution. Parents can maintain their independence, adult children can save for their first home, and everyone benefits from being close while still having privacy.

2. Remote Work and Creative Spaces

Guest houses aren’t just for guests anymore. In our work-from-anywhere world, an ADU can double as a home office, art studio, or workout space—allowing you to separate work life from home life without a long commute.

3. Extra Income Potential

Many buyers are looking for ways to make their home purchase work harder for them. Renting out a guest house—whether as a long-term unit or a vacation rental—can provide steady income that helps offset a mortgage.

4. Added Property Value

Well-designed guest houses can boost your property’s market value and attract a wider pool of buyers when it’s time to sell. It’s not just about more square footage; it’s about versatility and lifestyle appeal.

What This Means for Buyers

If you’re house hunting in Southwest Colorado, consider adding “guest house” to your must-have list. Even if you don’t need one right now, the flexibility and potential for future use make it a smart investment.

What This Means for Sellers

If your home has a guest house, it’s a major selling point—especially in today’s market. Highlight its features, potential uses, and any income history in your listing to maximize buyer interest.

💬 Thinking about buying or selling a home with a guest house in Durango or the surrounding area?
I help clients find properties that fit both their lifestyle and financial goals. Let’s talk about how this growing trend could work to your advantage.

📞 Michelle Brown | (970)-759-6958 – Blackmore Group Real Estate
Your Southwest Colorado Real Estate Expert