Prosperous Growth in Colorado
2017 is has been a productive year for Colorado construction, with new buildings going up everywhere and bringing a lot of job opportunities to the area. Denver has seen unprecedented growth, ranking on the Top 20 Forbe’s list of fastest growing cities in the United States.
Colorado’s economy is also doing well this year, in part due to construction as one of the largest contributing sectors. There is still a shortage of construction workers along the Front Range because of the current expansion and hot real estate market.
Construction Materials Consistently Rising
The average cost per square foot is around $150 depending on how fancy you finish the home. The next explanation is provided by a former construction contractor now real estate agent in the Denver area concerning the cost of building a home:
1. It is wholly dependent upon material selection. You can get ceramic tile for $.50 psf and you can get custom tile materials for $100+ psf.
2. Pricing is a curve based upon size, larger homes cost less than smaller homes per square foot with similar finishes. This is because the high fixed costs, can be absorbed into the space, and a carpeted family room is much less expensive to build than a kitchen or bathroom.
3. Multi-level homes are less expensive per square foot than ranches, as excavation, foundation work and roofing materials are more expensive than walls and flooring.
Some reasons that Denver is experiencing ongoing growth is that mortgage rates have stabilized, job availability has increased, and the housing inventory is at a record low. On average, Denver homes go under contract in just six days and the sale finalizes in around two months, which in May of this year was the fastest in the U.S.
Figuring Cost Per Square Foot
This video reiterates the cost per square foot of building a home in Denver CO:
Roofing Materials Can Be Expensive Too
As with general construction square footage, the cost of roofing is also based on the type of material used. Asphalt shingles are the least expensive option but aren’t as durable, whereas clay or slate tiles are pricey but last a long time.
Whether on a new home or an existing home that needs repairs, a roof installation is something that just about every homeowner experiences at some time or another. Even though the quality of roofing materials have improved over the years, Denver’s unpredictable climate can cause issues with any property.
If you are curious about the cost of roofing your Denver home, check out this graphic:
Your budget is key when it comes to the cost of investing in a new home, and you need to have a good income to build in the Front Range area. Efforts are being made to construct more lower income housing, but when the demand is so high, the options minimal.
Suburban areas are becoming more popular, driving the prices up all around the metro area. If you are willing to commute, there are smaller cities that still have more affordable homes, but it may be a long drive.