NEW HOME CONSTRUCTION IN COLORADO SPRINGS | AN ELK RIDGE CUSTOM HOMES GUIDE
The housing market has undergone significant changes in recent years, and 2025 is no exception. Colorado Springs remains a top destination for people seeking a balance of breathtaking scenery, outdoor activities, and high-quality living. The trend of remote work continues to attract new residents, increasing demand for custom homes in this desirable area.
While interest rates and inflation have tempered the market compared to previous years, demand for custom homes remains strong. Construction costs, impacted by supply chain adjustments, remain elevated but are more stable compared to the volatility of the last few years.
If you’re considering building a custom home in Colorado Springs, understanding the costs is critical. Let’s break it down.
WHAT FACTORS INTO THE COST OF A CUSTOM HOME?
Building a custom home involves multiple variables, many tied to the land itself. Here’s what we account for when creating your budget:
- Cost of Land: A separate but essential part of the overall project.
- Infrastructure Costs: Utilities, well drilling, septic systems, and more.
- Site Costs: Clearing, grading, driveways, and other lot preparations.
- Permits and Fees: Tap fees, building permits, and related costs.
- Design and Engineering: Architectural plans, structural engineering, and estimates.
- Construction Costs: From foundation to final finishes.
- Landscaping and Lot Finishing: From basic grading to high-end outdoor features.
Cost of Land
Land prices in Colorado Springs and surrounding areas have seen modest increases in recent years. Expect to pay between $250,000 and $500,000 for a buildable lot in El Paso County, depending on location, size, and amenities.
Key Considerations:
- Lot Challenges: Cheaper lots often come with hidden costs, such as difficult access to utilities or problematic soil conditions. For example, a lot without water rights may require a cistern, which adds ongoing maintenance expenses and a less-than-ideal lifestyle.
- Utility Access: A lot without electricity can require an additional $20,000–$150,000 to bring power to the site.
- Soil Testing: It is worth it to spend $1,000–$2,000 on a subsurface soil test to identify potential issues like clay or expansive soils before purchasing a lot.
Infrastructure Costs
Utilities remain a significant part of the budget. Costs depend on whether you’re building in an urban or rural area.
- Municipal Utilities: Tap fees for water, sewer, and electricity in Colorado Springs average $20,000–$25,000.
- Well and Septic: Rural lots require well drilling ($15,000–$40,000) and a septic system ($20,000–$45,000, depending on system type).
- Propane Tanks: If gas isn’t available, a propane setup costs $10,000–$15,000.
- Street Cuts: Connecting utilities in older neighborhoods may require cutting into the street, adding $5,000–$25,000.
Site Costs
Site preparation varies based on the lot's features:
- Heavily treed lots in areas like Black Forest may need $15,000–$50,000 for clearing and cutting in a long driveway.
- Open lots with minimal obstacles may only require $5,000–$10,000 in prep work.
Permits and Fees
Permit costs depend on your location:
- Colorado Springs: Building permits are around $3,500–$4,500, with tap fees totaling $20,000–$25,000.
- Woodmoor or Monument: Higher fees apply, with utility tap fees reaching $45,000–$55,000 and permits costing around $8,000.
Design and Engineering
Design and engineering costs have stayed steady as a percentage of the project. Expect to allocate 4%–8% of the build cost for these services. At Elk Ridge Custom Homes, we offer competitive pricing, with full custom designs starting at $30,000–$40,000. Semi-custom options can save you a few thousand.
Construction Costs
Building costs depend on size, complexity, and finish level:
- Current Range: $300–$500 per square foot, with luxury finishes and features pushing costs into the higher end of the spectrum.
- Key Factors: Complex designs, expansive floor plans, and high-end materials all drive costs. Our design-build approach ensures your home aligns with your vision and budget from the start.
Landscaping and Lot Finishing
Landscaping can be as simple or elaborate as you wish:
- Basic grading and seeding start at $5,000–$10,000.
- High-end landscaping, including retaining walls, outdoor kitchens, and custom water features, can exceed $300,000.
FINAL THOUGHTS
We covered a lot of numbers, but here’s the bottom line on build costs:
Our fully custom homes typically start around $1M all-in (not including land) and go up from there. No matter the budget, we never cut corners—we’re committed to building homes that will stand the test of time and be cherished for generations.
Building a custom home is an exciting journey, and understanding the costs is the first step. While the numbers can vary widely, one thing is certain: your dream home is within reach with the right builder. At Elk Ridge Custom Homes, we specialize in turning visions into reality while delivering an unparalleled client experience.
Ready to start building your dream home in Colorado Springs, Monument, or Black Forest? Let’s talk!
If you would like more information about our processes, see pictures of some of our projects, or learn more about financing a custom home, please follow the links below or contact our team below to start a conversation about your project.