Cost Per Square Foot
Cost per square foot is a pricing metric calculated by dividing total project cost by the square footage of construction, used for budgeting and comparing project costs.
Cost per square foot provides a rough benchmark for construction pricing, calculated by dividing total project cost by finished square footage. In Denver, typical ranges are: $150-250 per square foot for whole-house remodels, $200-400 for additions, and $250-400+ for new custom homes. However, this metric has limitations—smaller projects cost more per square foot due to fixed costs, high-end finishes dramatically increase per-square-foot costs, and complex projects cost more than simple rectangles.
Why It's Useful But Limited
Cost per square foot helps with initial budgeting and comparing similar projects, but shouldn't be the sole pricing metric. Factors affecting per-square-foot cost include: finish level (builder-grade vs. luxury), project complexity (simple addition vs. complex remodel), site conditions (easy access vs. constrained), and demolition requirements. A 200-square-foot bathroom remodel might cost $500 per square foot ($100,000), while a 2,000-square-foot basement finish might cost $80 per square foot ($160,000)—both reasonable despite the difference.
Cost Ranges by Project Type (Denver)
- New custom homes: $250-400+ per square foot
- Whole-house remodels: $150-250 per square foot
- Additions: $200-400 per square foot depending on complexity
- Kitchen remodels: $150-400 per square foot with high variation by finishes
- Bathroom remodels: $300-600 per square foot (smaller spaces cost more)
- Basement finishing: $70-120 per square foot for standard finishes
Related Terms
Value Engineering
Value engineering is the systematic analysis of project components to identify cost savings opportunities while maintaining or improving quality, function, and performance.
ROI (Return on Investment)
ROI (Return on Investment) for home improvements measures the percentage of renovation costs recovered through increased home value, calculated as: (value increase ÷ project cost) × 100.
Scope of Work
Scope of work is a detailed document specifying exactly what work will be performed, materials used, quality standards, and deliverables included in a construction project.
