Building Costs Per Square Foot in the State of Colorado, USA

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Colorado 1350 N Ladonia Drive Pueblo CO81007 - 3 Bed and 2 Baths with 3 Attached Garages on Gross Floor Area 1656 sqft - Built in 2022 - Price $411400 (2)_result

Newly Built House in Colorado 1350 N Ladonia Drive Pueblo CO81007 – 3 Bed and 2 Baths with 3 Attached Garages on Gross Floor Area 1656 sqft – Built in 2022 – Price $411400 (2)_result

Residential Construction Market Analysis in the State of Colorado, USA

Building costs are 1% above the national average in the state of Colorado, and equivalent to the states of Michigan and Nevada. Construction costs in Kansas, Ohio, Washington, Wisconsin, Delaware, Louisiana and Maryland are closer to Colorado by a deviation of 1%. Everyone dreams of owning their own custom-built home, and who hasn’t at least once fantasized about being a real estate agent like the ones you see on TV? This may sound somewhat impossible or unrealistic, but fortunately, the state of Colorado, USA, does grant you the possibility of achieving this.

Whether you want to be an investor in the world of real estate, you want to build your own country, or you are just curious about the subject, then continue reading this article. Here we will give you an inside look at the residential construction market in the state of Colorado, USA.

Colorado Construction Outlook

Colorado is most famous for its nature, for its high-peaked mountains, its forests, and the beautiful rivers that flow around it. However, not everything is natural in Colorado, there are also some large population centers that have a great diversity in the type of construction: from buildings similar to those you would see in NY, to small family houses.

The two largest centers, attracting investors and families looking to start their life in this beautiful state, are Denver and Colorado Springs. Denver has more buildings, so it is a pole that attracts investors and people who want to buy apartments that are already built like new or maybe just need a couple of renovations.

Colorado Springs has a couple of buildings but its big focus is single-family homes. In this case, it is important that the homes are built taking into account the mountain climate that is experienced in the cold of winter. This means that they are mostly concrete houses, generally with some type of special insulation to facilitate the heating of homes.

If you are thinking of building your own house or investing in a real estate project, it is very important that you invest in heating for cold days, as it will give you extra points with potential buyers or prevent you from freezing during the winter.

Colorado Housing Market Analysis and Forecast

Currently, Denver has become a pole that attracts hundreds of families and investors annually, due to its good living conditions and it’s not so expensive prices. This means that as there is more demand, prices also increase, which can be intimidating for families who are looking to buy a home to live in. However, it is possible to find some gems in the Colorado real estate market, you just have to be willing to do a couple of restorations.

In recent years newly listed homes in the state of Colorado saw a 5.5% increase in value each year, which speaks to a great increase in values ​​perfect for investors. Not only do the values ​​increase, but there are also a lot of sales. Only so far in 2022 when compared to the same period in 2021, there was a 17% increase in the sale of pending properties.

If you are looking to live with your family in Colorado, the best neighborhoods are Aurora, Northglenn, and Boulder, since they have the best schools in all of Colorado statistically speaking. However it is true that they are more expensive neighborhoods, it is likely that the properties cost 10% more than in other parts of Colorado, but take it as an investment in the future; if you want to live there you make sure that your children have a good education, and if you want to sell the home it will be much easier and faster to do so.

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Colorado Average House Price (Median Home Price)

Prices in Colorado vary greatly, so here we will focus mainly on Denver and Colorado Springs, which are the most attractive spots if you want to invest or if you want to move in with your family. Of course, you can go to the outskirts of those cities and find beautiful properties too, they may even be at a cheaper price, but these two cities serve as good statistical parameters.

The average value of a median home in those two cities ranges from $300,000 to $700,000. When we talk about the average house, we refer to a house with 3 bedrooms, two bathrooms, a kitchen, a garage, and a patio or garden. Of course, the price varies according to the type of construction of the house, if it is a luxury or a house for a middle-class family. You can find houses that exceed millions of dollars, but those are mansions, an average house does not exceed a million at all, not even in the most expensive neighborhood in Denver.

If you are looking for a plot to build from scratch, then you can find some that start at $190,000 and up. In these cases, the value varies according to the building permits or laws in the neighborhood, the size of the land, what state it is in, and what area it is in.

Proposed Residential Building Projects in Colorado

There are many real estate projects that are giving talks in Colorado, and that undoubtedly set the tone for what is coming in the real estate market. For example, in North Denver new homes are being built, whether in the form of large houses with a wide variety of rooms or small buildings. This is because a new Colorado State University campus is expected to open in 2022, so investors are preparing new housing to house college students. This is a risky investment but without a doubt, it will pay off since it is a university with many students.

In Civic Center Park, a 13-story building is also being built that has hotel rooms, micro-apartments, and a public rooftop bar. These two cases show you the great variety that exists in construction types. From homes for college students to homes for families or buildings with multiple functions are what is going strong in Colorado. Most of the new buildings that are being built or planned in the central areas of Colorado contemplate some space to have stores, bars, or that the rooftop can be used.

Colorado 6014 Remington Road Como CO80432 - 2 Bed and 3 Baths with Parking Pad on Gross Floor Area 1634 sqft - Built in 2022 - Price $565000 (1)_result

Newly Built House in Colorado 6014 Remington Road Como CO80432 – 2 Bed and 3 Baths with Parking Pad on Gross Floor Area 1634 sqft – Built in 2022 – Price $565000 (1)_result

Building Costs Per Square Foot for Single Family Homes in the State of Colorado, USA

Building costs are 1% above the national average in the state of Colorado, and equivalent to the states of Michigan and Nevada. Construction costs in Kansas, Ohio, Washington, Wisconsin, Delaware, Louisiana and Maryland are closer to Colorado by a deviation of 1%.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Colorado ranges from $348.34 per sqft to $533.99 per sqft, with the average being $411.09 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

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Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Colorado ranges from $211.71 per sqft to $324.51 per sqft, with the average being $249.83 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Colorado ranges from $136.86 per sqft to $207.87 per sqft, with the average being $160.23 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Colorado ranges from $99.88 per sqft to $153.17 per sqft, with the average being $117.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Colorado ranges from $81.07 per sqft to $124.16 per sqft, with the average being $95.60 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Colorado ranges from $63.94 per sqft to $98.01 per sqft, with the average being $75.43 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 13 Metropolitan Areas/Cities in Colorado – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 271 municipalities grouped into 62 counties in the state of Colorado. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

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The percentage deviation of building costs from the National Average for each metropolitan area in Colorado is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Colorado:

Colorado Average 1% (1% more than X)

  • Salida 812 -6%
  • Pagosa Springs 811 -4%
  • Fort Morgan 807 -2%
  • Durango 813 -1%
  • Colorado Springs 808-809 0%
  • Grand Junction 814-815 0%
  • Pueblo 810 0%
  • Longmont 805 2%
  • Boulder 803-804 4%
  • Glenwood Springs 816 4%
  • Greeley 806 5%
  • Aurora 800-801 7%
  • Denver 802 8%

The Metropolitan Area List above as well as the Bar Graphs below shows that Salida is the cheapest city to build a private home in the state of Colorado, and Denver is the most expensive city to build a home. Building costs are -6% below the national average in Salida and 8% above the national average in Denver.

Cheapest Places To Build in Colorado:

Salida is the cheapest to place to build at -6% below the national average, followed by Pagosa Springs at -4%. The third cheapest place to build is Fort Morgan at -2% below the national average. The fourth cheapest city to build a house is Durango City at -1% below the national average. Building costs in the cities of Colorado Springs, Grand Junction and Pueblo resemble the national average.  The cost of building a home in Longmont City is 1% above the US average. Construction costs in the cities of Boulder and Glenwood Springs are 4% above the US average.

Expensive Places To Build in Colorado:

If anything between 5% and 10% is considered expensive, then there are three such metropolitan areas in the state of Colorado. Building a house in the city of Greeley is 5% more than the national average. Home construction costs in the cities of Aurora and Denver are 7% and 8% above the US average respectively.

More Expensive Places To Build in Colorado:

If anything between 10% and 15% is considered more expensive, then there are is no such metropolitan area in the state of Colorado.

Very Expensive Places To Build in Colorado

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Colorado.

Colorado State Average Costs:

Private home building costs in the state of Colorado are 1% above the national average. Building cost rates in the metropolitan areas of Colorado Springs, Grand Junction, Pueblo and Longmont City are closer to the Colorado state average by a deviation of 1%. The cost of building a residential property in Colorado Springs, Grand Junction and Pueblo is equivalent to the national average. Denver is the most expensive city to build a home in Colorado, and the state of Colorado is number 33 on the national ascending costs scale.


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