What Does It Cost to Build a Home in the mountains of Colorado?

One of the first questions we hear from prospective homeowners is:

“How much does it cost per square foot to build a home?”

This question is both the most logical one to ask, and the hardest one to answer early in a project’s lifecycle. While cost per square foot can be a helpful starting point, it rarely tells the full story of what it takes to build a home.

Here’s what you should know.

Cost Per Square Foot

While every project is unique, S&T is delivering custom homes in Chaffee, Lake, and Park counties today for between $400–$680+ per square foot, depending on location, site conditions, design complexity, and finish level.

While many builders speak about a cost per square foot, that number is simply an average, and what is included and excluded can have a dramatic impact on it. Two homes with the same square footage can differ in cost by hundreds of thousands of dollars. Or, two builders may be providing very different estimates simply because they define the inclusions and exclusions differently. We at S&T strive for transparency at every step, so we put together this blog to explain how we approach this topic.

The biggest factors that influence construction costs include:

• Site conditions
• Interior and exterior finish selections
• Architectural complexity
• Structural engineering requirements
• Energy efficiency goals
• Size, quantity, and quality of windows and doors
• Cabinetry, flooring, plumbing, and lighting fixtures
• Outdoor living spaces like decks and landscaping
• Presence and size of a garage

How S&T defines Cost per Square Foot

When we provide potential clients a range of potential cost per square foot, this is what we mean.

 What is included:

We are referencing conditioned square feet (i.e. each square foot of space that is within the thermal envelope and is livable). Therefore, outdoor living spaces and garages are real costs, but those costs get averaged across the conditioned square feet. We find this approach creates a standard and consistent way to speak about approximate costs.

 What is excluded:

There are substantial costs that are extremely site specific that we do not include when we speak about cost per square foot. These are:

• Land acquisition costs
• Utility design, fees and installation (i.e. septic/sewer, water/well, electric and gas services)
• Design services (i.e. architecture, structural engineering, utility design and engineering, soils test, etc)

Example project:

Single family home with 1,600 conditioned square feet plus 400 square feet of covered deck and a 800 square foot garage. This project is located in unincorporated Chaffee County. Clients express a desire for ‘mid-grade’ finishes with no extra-fancy items like a steam shower or hot tub.

 S&T’s ‘Cost per square foot’ estimate:

• The home by itself (without deck & garage) would probably be around $380/sf or $608,000
• Add in covered deck and garage costs estimated at around $120,000
• Total ‘cost per square foot’ would be $455 ($608,000 + $120,000 / 1600 sf)

 Excluded but real costs:

• Septic system design, permitting & installation ≈ $42,000
• Well permitting and drilling ≈ $40,000
• Electric service costs ≈ $5,000
• Design services ≈ $12,800 (we typically see these costs be between $8 – $15/sf)

 Even though we exclude the pre-construction costs from the cost per square foot estimates, S&T’s Design-Build services absolutely include the pre-construction services! We will hire and coordinate all the folks necessary to get your property ready to build on and get your home designed to fit your vision and budget.

Every Property Is Different

The land itself can have just as much impact on your budget as the home.

Site conditions that commonly affect construction costs include:

• Steep or sloping lots
• Rock excavation
• Expansive soils (not usually an issue in our area)
• Length of utility runs
• Driveway length and complexity
• Drainage requirements

Two identical homes built on different lots can have dramatically different site development costs.

Financing Matters

The way you finance your project also affects the total cost of building.

Most custom homes are funded through a construction loan, which typically involves:

• Interest payments during construction
• Loan fees
• Appraisal costs
• Closing costs
• Conversion to a permanent mortgage after completion

Working with an experienced lender early in the planning process can help you understand your borrowing capacity and establish a realistic project budget.

Timing Can Influence Cost

Construction pricing is never static. Material costs, labor availability, permitting timelines, and market demand all influence pricing from year to year—and sometimes month to month.

Starting your planning process early gives you more flexibility and allows S&T to identify opportunities to maximize value before construction begins.

The Bottom Line

Cost per square foot is a useful starting point, but it should never be the only number guiding your decisions.

The most accurate way to estimate the cost of your home is to evaluate the project as a whole—your goals, your site, your level of finishes, and the unique details that make your home yours.