Many people find building a house in Colorado to be an appealing option because of the state’s numerous towns, stunning landscapes, and expanding economy. However, depending on a number of variables, including labor, materials, design, and location, the price of building a new home in Colorado can vary significantly. Knowing how much it will cost to build a home might help prospective homeowners avoid an unmanageable financial burden or a well-planned project.
What Is the Cost to Build a Home in Colorado?
How Much Does It Cost to Build a House in Colorado in 2025?
In 2025, the cost to build a custom home in Colorado ranges from $300,000 to $600,000, covering only construction expenses. Additionally, land costs can add substantial amounts, typically between $1,000 to $15,000 per acre. If you’re planning on building, it’s crucial to factor in permits, materials, and labor fees, which can contribute significantly to overall expenses.
As an alternative, purchasing a new construction home in Colorado is becoming a popular choice. With a notable 14.3% increase in new listings and 35% of homes seeing price drops, now is an ideal time to explore available options.
Cost Breakdown of Building a Home in Colorado
For an average home size of 3,000 sq ft, the average cost amounts to $250 per square foot. Below is a detailed cost breakdown:
- Land Cost: $1,000 – $12,000 per sq ft
- Water and Sewer Inspections: $250 – $1,700
- Building Permits: $50 – $6,300
- Foundation: $6 – $29 per sq ft
- Framing: $7 – $16 per sq ft
- Exterior Siding: $3.44 – $7.91 per sq ft
- Roofing: $162 – $1,827 per 100 sq ft
- HVAC: $3,620 – $4,770
- Plumbing: $77.80 – $112.80
- Electrical: $130 – $150
- Drywall: $1.60 – $1.70 per sq ft
- Painting: $1.90 – $3.20 per sq ft
Material Cost of Building a House in Colorado
The expectation for material costs is approximately $50 per square foot. Here are specific material expenses to consider:
- Framing Materials: $20,000 to $50,000
- Roof Installation: Costs vary based on material type and slope.
- Exterior Painting: $3,000 to $6,000
- Insulation: $1.01 to $1.27 per sq ft
- Windows & Doors: $148 to $812 per unit
- Flooring Materials: $6.70 to $9.40 per sq ft
- Cabinets & Countertops: $85 to $120 per sq ft
- Plumbing Fixtures: $77 to $112
Labor Cost to Build a Home in Colorado
Hiring laborers and professionals remains essential in the construction process. Below are average hourly rates for various professionals:
- Flooring Installers: $25.12
- Roofers: $24.28
- Painters: $22.69
- Brick Masons: $26.18
- Landscapers: $21.25
- General Contractors: $21.36
- Plumbers: $30.12
- Carpenters: $26.44
- HVAC Technicians: $32.41
- Structural Engineers: $40.59
- Electricians: $32.04
Indirect Costs to Build a House in Colorado
Indirect costs occur before construction starts or after moving in and include:
- Land Acquisition Costs: Average $15,000 per acre
- Preparation Cost: $1,500 to $3,000 for land clearing
- Building Permit Costs: Average $6,000
- Home Interiors: Average $90 – $102 per hour (plus materials)
Financing Your Home Construction in Colorado
Home construction financing options include:
- Home Construction Loans: Typically requiring a high credit score and 10% down payment.
- Construction-to-Permanent Loan: Covers land purchases and construction, converting to a conventional loan afterward.
- Construction-only Loan: Covers home building costs, due upon completion.
- Home Equity Loan: Can be leveraged if you already own property.
Is It Cheaper to Build or Buy a House in Colorado?
Buying a home often proves to be cheaper than building one, especially with current market conditions showing an average price for single-family homes in Colorado at around $671,400. Building can take up to 9 to 12 months compared to the faster process of purchasing a home within 1.5 to 2 months.
Cost to Build vs. Cost to Buy in Colorado Cities
Here’s a brief comparison of the costs:
- Denver: Average Cost to Build: $600,000, Average Cost to Buy: $587,750
- Colorado Springs: Average Cost to Build: $750,000, Average Cost to Buy: $464,000
FAQs about Building a House in Colorado
- How long does it take to build a house in Colorado? Expect 10 to 14+ months, not including design phases.
- Can I build a tiny house in Colorado? Yes, following the 2022 law, tiny houses can be full-time residences.
Cost per Square Foot to Build a House in Colorado
| Home Size (Square Feet) | Basic Builder-Grade Home | Custom Home |
|---|---|---|
| 800 | $160,000 – $240,000 | $240,000 – $400,000 |
| 1,000 | $200,000 – $300,000 | $300,000 – $500,000 |
| 1,500 | $300,000 – $450,000 | $450,000 – $750,000 |
| 1,800 | $360,000 – $540,000 | $540,000 – $900,000 |
| 2,000 | $400,000 – $600,000 | $600,000 – $1,000,000 |
| 2,500 | $500,000 – $750,000 | $750,000 – $1,250,000 |
| 3,000 | $600,000 – $900,000 | $900,000 – $1,500,000 |
| 3,500 | $700,000 – $1,050,000 | $1,050,000 – $1,750,000 |
| 4,000 | $800,000 – $1,200,000 | $1,200,000 – $2,000,000 |
Factors that Influence the Cost of Building a Home
- Size and shape: The cost of a house increases with its size and design complexity.
- Location & Region: Costs for labor, building permits, materials, and other expenses differ depending on the location.
- Features of the land: Plots on a slope will cost more because of the cost of grading, the need to dig a deeper foundation, or the potential need for retaining walls to keep the foundation in place.
- Green and sustainable features: Depending on the specific green features you decide to incorporate, green building can also significantly affect the cost of the house.
- Finish quality: This is where you’re most likely to go over budget. The cost of your project will increase with the luxury of the materials you choose.