‘How much does it cost to build a custom home?’ If you’re thinking about building a custom home, you’ve probably asked this question. I’ve been asked this question dozens of times so I know that people are curious! I believe in being honest up front and giving transparent information so that our prospects and clients can make informed decisions with accurate information. I hope the following is helpful information as you decide if building a custom home is right for you!
Remember, the cost of a custom home will vary from market to market depending on your local land costs, labor rates and material costs. For the sake of this post, I’ll review what it costs to build a custom home in the greater Colorado Springs, Monument and southern Douglas County, CO market in 2020.
Total Custom Home Cost = Land Cost + Building Costs
Custom home lots in our market are getting harder and harder to come by. Typically, most of the available lots in the larger neighborhood communities are owned by large tract home builders and developers and aren’t usually available for a custom home builder or individual to purchase to build on. Most custom home lots are between 1 and 5 acres, with the majority ranging between 2.5 acres and 5 acres.
Presently, you can expect to pay anywhere from $150,000-$450,000 for a custom home lot with most ranging between $225,000-$350,000 for a 2.5 – 5 acre lot.
The actual cost of construction to build a home (labor + materials) can vary wildly depending on site conditions, size and style of the home as well as the finish materials used.
Our average home is about 4,500 sq ft with a 4 car garage with designer finishes including custom cabinets, quartz counter tops, lots of custom trim and millwork and higher end appliances and plumbing and lighting fixtures. Our average build cost is $900,000-$1,000,000, not including land.
However, we recently finished a 2,300 sq ft home with a 2 car garage that cost about $650,000 and we also have a home currently under construction that is about 5,700 sq ft and a building cost of around $1,535,000.
The Bottom Line
When you factor in current land and building costs in our market in 2020, it is difficult to build a custom home in this market without a budget of at least $900,000 – $1,000,000.
Want to Know More?
One of my favorite things to do is help prospective clients understand the custom home design and building process. Take a peek at some of our other posts, or, if you are in the market to build a custom home in the greater Colorado Springs, Monument, Castle Rock, Elizabeth or Franktown, CO areas, I’d love to show you around our new offices and design studio and answer any questions you might have! You can contact us by clicking here.