How Much Does It Cost to Build a House in Denver, CO? [2025 Data]

When breaking ground on a new construction, the average cost to build a house in Denver today is around $331,289. With factors like home size and choice of finishes considered, homeowners are often paying between $79,248 and $602,717. Despite a generally higher cost of living, Denver's cost for new builds is right on track with the national average. Keep reading to learn more about the costs to expect when building a custom Denver home.

Home Building Cost Factors

With roughly 60% to 80% of homes in Denver having basement foundations to account for the frost line, digging for foundations here is generally costlier compared to regions where slab foundations or other inexpensive options are common due to climate and soil type. When planning your home with your builder, it's important to weigh the pros and cons of added costs that are recommended for Denver's climate of cold, snowy winters and warm summers.  

Square Footage

The cost to build a custom home can range anywhere from $100 to $500 per square foot, with the average sitting right around $150 per square foot. The higher end of this range accounts for building luxury homes or homes in large cities. The size and type of house you choose will also affect what you’ll pay.

Number of Bedrooms 

It’s helpful to have an idea of the total construction cost based on the number of bedrooms, since that will likely be the first thing you decide. You can expect to pay $100,000 to $120,000 per bedroom. Note that the added cost comes from not only the additional square footage for the bedroom but also larger living spaces, additional bathrooms, and utilities to support additional occupants. The average home in the U.S. today is 2,200 to 2,500 square feet and has three bedrooms.

Here are the new construction home costs based on the number of bedrooms at the average price of $150 per square foot.

Foundation Type

The cost of your foundation will come down to where you live, the soil conditions, and the type of foundation that’s best for your home.

Unless you’re well-versed in construction, you’ll probably want to lean on a structural engineer to help you determine the correct foundation type and inspect the foundation after its completion.

Exterior Finishes

Exterior finishes, from the siding to the shingles on your roof, will account for $25,000 to $60,000 of your overall home-building costs. You and your team will have a lot of decisions to make depending on the exterior style you’re going for and the best options for your local climate, among other factors. Things like high-end roofing materials and gutters will increase your cost but also provide a greater ROI.

Interior Finishes

Moving on to the interior work of your home is an exciting phase. This stage is the moment to determine the flooring, the paint colors, and all appliances and home systems that make your house a home. Assume you'll pay between $50,000 and $175,000 for all interior finishes.

The higher cost range accounts for more complex and sought-after materials. These include everything from insulation with higher R-values to beautiful marble countertops. Nearly every category, however, offers options for all budget preferences.

Home Building Pro Costs

When you hire a custom home builder in Denver to design and build your new construction, they'll work on creating a budget based on the price per square foot, with all of your preferences for layout and finishes included. In addition to pricing by square foot using labor and material costs, builders also add in costs to cover permits, sales tax, and licensing and insurance. In most cases, it's not necessary to hire separate subcontractors for things like electrical and plumbing for different parts of a house when you hire a general contractor, because they will coordinate the work and payment of all subcontractors on your behalf.

Permits

Before beginning a new residential construction in Denver, it's necessary to contact the Community Planning and Development department to learn about permit requirements. Prior to beginning, your builder will need to prepare and submit architectural and engineering plans for the home, verifying that the design complies with Denver Building and Fire Code, local zoning codes, and all other environmental and local regulations. Once the plan is approved, a permit will be issued. Denver building permit costs are based on a project's value. For homes valued between $50,000 and $1 million, homeowners can pay anywhere from $420 for the first $50,000 plus $7 for each additional $1,000 to $3,010 for the first $500,000 plus $4.75 for each additional $1,000. The cost is $5,385 for the first $1 million plus $3.65 for each additional $1,000 for new construction projects over $1 million. The plan review fee totals 50% of whatever your permit cost works out to be.

Taxes

While labor for new home construction is exempt from sales tax in Denver, all of the building materials and finishes needed for your new home will be subject to sales tax. When factoring in the Colorado state tax rate of 2.9%, the Denver sales tax rate of 5.15%, and the district tax of 1.1%, the total sales tax for this project is 9.15%.

Licensing, Certification, and Insurance

While there is no statewide requirement for contractor licensing in Colorado, the Denver Community Planning and Development office issues contractor licenses. A General Contractor Class A license costs $250 every three years. Additionally, Denver contractors generally pay between $90 and $225 per month for licensing and bonding.

Is Building a New House Worth It?

For homeowners looking to put down roots in Denver, new home construction offers a way to get the custom features they want. While Denver's housing market is somewhat competitive, the highs and lows aren't quite as extreme as those in other cities. This means that homeowners need to weigh factors like how long they intend to stay in a home and how long it takes to build a custom home against the city's pricing trends to see if the financial return on investment is worth it.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed thousands of real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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