Cost Of A Custom Home Or Remodel In Denver?
The cost of a custom home or remodel is complicated to exactly pin down because of variances in projects. In 2026, Denver’s construction market remains premium vs the rest of the country. Based on data, the average cost to build a home can range dramatically from $350 per square foot to $500 or more a square foot.
If you are planning a project this year, understanding the levers that move your budget will be the difference between a smooth build and not having a good time.
Here is what is currently driving the cost of custom homes and major remodels in Denver:
- Skilled Labor Scarcity: The price of skilled labor is at an all time high. I don’t see it coming down because of the shortage of trades people. Denver’s booming multi-family, commercial, and ultra high end residential sectors compete for the same plumbers, electricians, cabinet makers, and framers. Expect labor to account for 40% to 50% of your total budget in 2026.
- Regulatory & Permit Timeline: Permit fees are usually what is thought of when it comes to budgeting but the time that it takes the permit office to approve the permit can actually be costlier. Denver’s review has been terrible for the past few years. In 2026, this translates to carrying a lot of cost and inflation while waiting for the green light from the city.
- Code updates: Adoption of newer code guidelines and the International Energy Conservation Codes (IECC 2021) means stricter insulation, air sealing, and high-performance HVAC standards. While this lowers your bills long-term, it adds a front-end premium to your building envelope costs and systems.
- Project Complexity vs. Square Footage: With all of the building happening in Denver, project size and the complexity of the project determines the price. I have found that some small projects are difficult to price out because people aren’t interested in the small returns so sometimes quotes can be very high.
Pricing Breakdown
- Custom Builds: Expect to see $375 – $500+ per sq. ft.
- Major Remodels: $150 – $300+ per sq. ft. (highly dependent on if a kitchen or bath are part of the scope).
If you're looking to build or renovate this year, bringing in a competent designer and builder early in the process can be invaluable.
