New Homes Being Built in Denver: What to Know Before Committing Should You Buy a Custom-Built or Production-Built House? 1

New Homes Being Built in Denver: What to Know Before Committing Should You Buy a Custom-Built or Production-Built House?

It is an interesting time to be looking into buying or building a new home, especially if you live in the Denver area. If you’ve been paying attention to the housing market, you know that mortgage interest rates are increasing to offset inflation. However, home prices continue to rise with no end in sight, especially in certain markets. In fact, the median price for homes increased every month of the year up until August 2022.

What does this mean? It means that it is more challenging than ever to find a new home that is both affordable and meets the needs of your family. Variables such as school district, work commute, neighborhood, or other critical factors may turn a viable home into a dealbreaker. It’s also worth noting that the average home price in Denver is currently well over $600,000. For the average Denver resident, this makes the idea of purchasing a new home financially impossible, especially when factoring in rising interest rates.

A select few homebuyers have been able to find ways of making this painful process a little easier. Some of the most popular methods include getting a VA loan or a USDA loan for a no-down-payment mortgage; however, only certain folks qualify for those.Some buyers with not-so-great credit have been able to complete their home purchase using an FHA loan, which knocks the down payment percentage to around 3 – 3.5 percent. Even with a low down payment, 3 percent on $600,000 comes out to $18,000, and some families don’t have that kind of money lying around.

New Homes Being Built in Denver: What to Know Before Committing Should You Buy a Custom-Built or Production-Built House? 2

Do high-quality new build homes in Denver that are affordable even exist? Indeed, they do. This leads us to our next topic of discussion – production-built homes.

Production-Built Homes vs. Custom-Built Homes

A custom-built home typically uses an original blueprint that is designed to meet the needs of the buyer while staying within the special parameters of the lot it will be built upon. The advantage of this is the buyer has total control over every aspect of the home, right down to the bathroom tile and kitchen countertop materials.

The core disadvantage is that custom-built homes are notoriously expensive. Additionally, the buyer never gets to see a sample of the home before it’s complete. They must put their trust in the plans and builders and hope it meets their expectations.

Finally, the process of building a custom home can take anywhere between 8 and 24 months. Much of that is dependent on the efficiency of the general contractor, how quickly they can get the proper permits, how well inspections go, and other factors.

On the other hand, production-built homes typically follow around five standardized blueprints that the home buyer gets to choose from, depending on the home builder. Although this means that the home that’s built isn’t wholly original, it also means that the builders have a ton of experience constructing this type of home.

Production-Built Home Advantages

The following are some of the core advantages of going with a production-built home.

  • Since the builders have prior experience building the home, that means their process is more streamlined and less susceptible to error. This results in a much quicker turnaround time. Some production-built homes are built as much as 75 percent faster than custom-built homes.
  • Going with a production-built home means that the builders have a much better idea about the materials that they need. This means that production-built homes generate the least amount of construction waste, and those savings are passed along to the buyer.
  • Production built homes are typically built within planned communities. This means that the home buyer doesn’t have to worry about a land purchase or securing permits. Cutting out these administrative tasks further reduces the timeline.
  • Production-built homes are significantly less expensive than custom built homes. In fact, some production-built homes in Denver start for as little as $300,000. Additionally, all of them are built with energy efficiency in mind, which means that home buyers don’t have to worry about costly energy bills.
  • Many companies that build production-built homes have an inside track with financial institutions where prospective buyers can get help with financing or improving their credit health.

Finding Production-Built Homes in the Denver Area

If you’ve been searching for new homes for sale in the Denver area through Zillow and the other usual avenues, it’s very likely that you have not come across a production-built home.

The best way to get in touch with builders offering this type of home is to reach out to them directly. You can kick off your search by Googling the phrase “production-built homes in Denver.”

That should bring up a few results in your direct vicinity. From there, check out floor plans, get pricing, and see images of past work. Although your production-built home won’t be an original, this is one of the only ways to get into a new home in Denver for under the current median sale price – and you can always choose interior finishes that will make it special to you and to your family.


Student. Award-winning communicator. Subtly charming coffeeaholic. Organizer. Gamer. A real dynamo when it comes to managing jack-in-the-boxes for fun and profit. Spent the 80's donating shaving cream in Libya. Spent 2001-2004 lecturing about Roombas in Jacksonville, FL. Garnered an industry award while getting my feet wet with sheep in the government sector. My current pet project is working on Slinkies in Orlando, FL. Spent 2002-2009 developing strategies for crayon art for the underprivileged.