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Alliance Engineering, Ltd.
Projected Costs for New Home Construction in Denver, Colorado
One of the most important factors in designing a new single home or in developing out an entire neighborhood after platting is the cost per square foot of the home or Project to be built. Denver, Colorado is presently the fastest growing economy in the U.S and, thus, there is presently almost unlimited demand for homes of all types and sizes. As a result it is important to carefully consider the likely price per square foot of the construction of a new home as opposed to that of an existing home.
Alliance has carefully studied the housing market and specifically those homes that are considered typical for a medium-high end custom home and are neither considered overly luxurious, nor economy homes. This information is being made available to the public for general use in qualifying budgets and design programs.
Typically, there are three (3) ways to measure square footage. This is important because it is a highly sensitive variable. The first is measuring only finished living space and not accounting for unfinished space or garages. The second is measuring total enclosed space, not including garages. The third is measuring total enclosed space including garages. When starting a project, make sure you clearly identify how you are measuring space in your program and that you are using a common standard of measurement with your engineer, architect, and/or contractor.
The costs noted below are for the construction of the finished home itself with all accessory appurtenant structures (decks, covered porches, and the like). It DOES NOT include land costs, site development costs, soft costs or finance costs. It does include all interior finishes. However, it does not include furnishings, art or interior decorating for the home.
Results of Study Regarding Construction Costs:
Total Finished Square Footage:
Low: $150 per Sq.Ft. / High: $275 per Sq.Ft. / Average: $235 per Sq.Ft. / Median: $230 per Sq.Ft.
Total Enclosed Square Footage not including Garage:
Low: $150 per Sq.Ft. / High: $230 per Sq.Ft. / Average: $195 per Sq.Ft. / Median: $185 per Sq.Ft.
Total Enclosed Square Footage including Garage::
Low: $125 per Sq.Ft. / High: $195 per Sq.Ft. / Average: $165 per Sq.Ft. / Median: $155 per Sq.Ft.
The breakdown of these costs by percentage of construction component is shown below. This is a generalized model based on the Denver housing data. As each project can vary significantly in one or more categories, a Schematic Design needs to be developed in order to allow for line-item budgeting to further inform the homeowner of the actual costs and breakdowns for the Project.
The typical new home construction cost breakdown is as follows:
General Contractor Fee: 15 %
General Conditions: 5 %
Interior Finishes: 20 %
Exterior Finishes: 10 %
MEP: 15 %
Shell: 35 %
Although these may seem high, that is the way it is in Denver, Colorado right now. When the time between listings of existing homes going onto the market and initial contract offers is not days, but hours, it is no wonder that new home pricing is as high as it is.
AEL is Licensed, Dependable, and Accurate
The Colorado Principal office is located in Westminster, Colorado. We have licensed Professional Engineers (“P.E.’s”) available on call to complete inspections and reports within 24 to 48 hours of the call coming in. Please call us at (303) 485-8700 or (720) 898-0660. You can also contact AEL by email at mcentofanti@AELEngineering.com. We oftentimes have to react instantaneously and are used to doing so due to an upcoming closing or contract.