The City and County (opens in a new tab) of Denver is currently pursuing a substantial set of reforms to its zoning code aimed at increasing the supply of “missing middle” housing in the City. Spearheaded by Denver’s Department of Community Planning and Development, the “Unlocking Housing Choices” project is looking at ways the City can increase both the size and diversity of its housing stock. The City formed an advisory council meant to consult with city planning staff, pursued a number of community engagement activities, and released three draft proposals for an eventual text amendment to the Denver Zoning Code. Given the potential impacts of this project on housing development in Denver, this alert will provide an overview of the City’s work so far and a brief roadmap to the project’s future.
What Problem is the City Attempting to Solve?
Unlocking Housing Choices is aimed at incentivizing the creation of “missing middle” housing. Blueprint Denver (opens in a new tab) defines missing middle housing as “housing types that fall between high-density and single-unit houses, such as duplexes, fourplexes, row homes and townhomes, and provide options affordable to moderate income residents. This type of housing serves people who live well above the poverty line, but still struggle to afford housing in Denver, such as teachers and firefighters.” Blueprint Denver also includes a recommendation that the City diversify its housing options by integrating missing middle housing into low and low-medium density residential areas.
Denver commissioned an Issue Identification Report (opens in a new tab) last year aimed at identifying the key issues with the City’s current housing supply. The Report identified six core issues that present barriers to Denver’s housing goals: insufficient housing diversity, deficient housing supply, uneven development pressure, unaffordability of available housing, loss of existing housing options, and new housing that is incongruous with existing neighborhood character. Denver also commissioned a Peer City Report (opens in a new tab) aimed at understanding “commonly accepted practices and innovations for encouraging production of middle housing.”
What Has Been Proposed?
The City has proposed—as the first phase of Unlocking Housing Choices—three connected approaches to increasing missing middle housing: (1) updating the scale and form of buildings allowed by the Denver Zoning Code, (2) allowing the development of infill housing, and (3) allowing additional density on certain residential lots where there is a new affordable unit.
- Updating Scale and Form (opens in a new tab)
- One proposal would reduce the size and scale of housing that can be built in residential neighborhoods, including a requirement that third stories be located within a pitched roof.
- Instead of allowing for larger single-unit developments, the City proposes allowing multiple dwelling units within the reduced “house-scale” building form when certain criteria are met.
- Infill Bonus (opens in a new tab)
- The City is also exploring the option of allowing additional units on a lot when an existing structure containing a dwelling unit is retained.
- New dwelling units may be within the existing structure—via the subdivision of an existing structure into two or more separate dwelling units—or on new primary structures located on the zone lot, such as a tandem house or duplex. New units could be sold separately.
- The number of dwelling units allowed would still be limited by the size of lot, gross floor area limits, building form, and building code standards.
- Affordability Bonus (opens in a new tab)
- The City has proposed two potential paths to allowing additional units on a lot when at least one new affordable unit is provided:
- One or more units must be restricted to renters or buyers earning a specific percentage of area median income.
- One additional dwelling unit may be added when that unit contains at least two bedrooms and is under a size threshold, such as 1,000 square feet.
- Affordable and for-sale units would have to remain affordable for a period of 99 years.
- The City has proposed two potential paths to allowing additional units on a lot when at least one new affordable unit is provided:
What Outcomes are Expected if These Policies are Adopted?
Based on analyses of peer cities with missing middle housing policies and of Denver’s current levels of redevelopment activity, the City released a memorandum (opens in a new tab) that discusses the potential outcomes of adopting these proposed policies. Those expected outcomes include:
- Continued missing middle development in neighborhoods where a variety of housing types already exist and where the market has already been converting single-family homes into two- and four-plexes.
- Missing middle development in high-priced, high-demand neighborhoods where a duplex is an affordable alternative to an existing single-family home.
- In neighborhoods experiencing revitalization, redevelopment is most likely to occur initially on parcels owned by mission-oriented developers and existing homeowners.
The memorandum estimates that the adoption of a comprehensive missing middle housing policy in Denver would create at least 249 and up to 2,025 new units per year. Where these additional units are located is likely to depend on individual neighborhood characteristics and economic conditions.
What Do Denver Residents Think?
Beginning in 2025, the City conducted surveys and held community events aimed at gathering feedback (opens in a new tab) on Unlocking Housing Choices from local residents. Community outreach has included assembling an advisory council composed of community leaders, housing advocates, developers, and architects; presenting to registered neighborhood organizations all over Denver; and hosting public meetings to allow residents to discuss the project’s initial proposals. The City also launched an online survey on the proposals in March of 2026, which resulted in over 800 responses.
According to the City, public feedback has reflected “general support for expanding housing options, alongside significant questions about how the proposal will work in practice.” Common concerns from Denver residents have included the influence of non-zoning forces on the housing market, such as permit processing times and interest rates; how the proposal would handle displacement, gentrification, and corporate ownership; and how the City would preserve neighborhood character.
Where Do We Go From Here?
The Department of Community Planning and Development is expected to continue to refine and update the proposed code changes in the coming months. The three draft proposals outlined above are considered “phase one” of the City’s missing middle policy updates; project materials indicate that the City Council may vote on these proposals by the end of this year. For developers and other real estate professionals with feedback on Unlocking Housing Choices, the City is still soliciting comments and questions (opens in a new tab) from the community.
If you have questions about the ongoing development of Denver’s Unlocking Housing Choices policies or the potential impact of these changes on real estate matters in Denver, please contact an Otten Johnson attorney.