Key Takeaways
- Lot size depends on location, zoning, access to utilities, and lifestyle preferences.
- In urban areas, ⅓ acre may be sufficient, while rural properties often require 1+ acre.
- Intended use (main home, guest house, barn, etc.) influences how much land you’ll need.
- Larger lots may come with higher costs for utilities, access roads, and permits.
- Working with a custom builder early helps determine the ideal land size and avoid costly mistakes.
People interested in building a custom home in the Colorado Springs area often struggle with determining how much land they’ll need to fulfill their dream home vision, says Murphy’s Custom Homes president and founding principal, Tim Murphy. “We recently had an out-of-state client seeking privacy and mountain views who was surprised to learn that zoning in some of our rural areas mandates significant acreage for a single-family home,” he says. “Where he’s from, minimum lot sizes range from about a 10th to a half-acre, which he can certainly find in the city of Colorado Springs. However, if he wants to build a home on the range away from the city, zoning will often require him to purchase two, five, and even up to 35 acres, depending on the location.”
The bottom line is that those planning to build a custom home in the Colorado Springs area and surrounding counties often don’t understand how much land one needs to build a house here. In addition to zoning, lot size may also be influenced by setback rules, easements, and topography. The lot size that might work for building a new home in a Colorado Springs subdivision may not be feasible in rural parts of Douglas, El Paso, or Elbert Counties. A buyer also needs to consider how the land will effectively support their dream home vision.
Let’s further examine the question of how much land you need to build a house in Colorado so that you’ll have a comprehensive understanding of how to approach land purchasing for your custom-built home.
Urban vs Rural: How Much Land Is Typical?
Given the vast amount of land available in Colorado’s Front Range, with over 1,400 listings for land for sale in El Paso County, as reported by Land Watch, it’s natural to wonder how much land is typically purchased for a custom home build. In general, lot sizes range from a quarter to one acre in suburban areas like Colorado Springs, while rural acreage for new home builds in the region ranges from one to five acres. Of course, those with the means and desire acquire even larger tracts of up to 35 acres or larger.
Why Lot Size Matters More Than You Think
Before considering how regulatory factors might influence minimum lot size requirements, you first need to determine how much land you’ll need to ensure that it conforms to your custom home vision. A typical custom-built, single-family home in Colorado ranges from 2,000 to 4,000 square feet. When accounting for setbacks, a driveway, and desired outdoor space, a quarter-acre to one-acre lot usually handles such moderately sized homes with ease in suburban or rural areas. However, homeowners who desire distinct features, such as a separate garage, barn, guest house, other outbuildings, swimming pool, privacy, and extensive yard and gardens, may be more comfortable with one to five, or even more, acreage, especially in rural areas.
The type and location of the land may also influence lot size considerations. If you plan to build in mountainous terrain with extensive slopes or rocky ground, you may need more land than you think to account for grading, property access, workable home siting, and septic system and well, if not connected to a municipal system. For example, rural properties in our area typically require at least a half-acre to one acre of usable land for the septic system, and well placement generally needs from 50 to 100 feet of separation from it.
Other issues you will need to consider when determining lot size include:
- The amount of annual maintenance your property will require due to its type, size, and location.
- Whether local rules require additional land for a wildfire mitigation buffer.
- Lot coverage ratios – especially important for smaller lots.
- Flood zone requirements.
- Height restrictions.
- Utility easements.
- Homeowner’s association (HOA) rules may apply if planning to build in a suburban area.
- Development costs—larger lots in remote areas will require more construction expenditures.
- Future usage expansion needs—perhaps your young daughter becomes enamored with horses.
The Hidden Costs of “More Land”
According to Land.com, the median price per acre of Colorado Front Range land is $19,542. However, the mantra of “location, location, location” has a significant effect on land pricing, as evidenced by the $50,000 to $200,000 price per acre of smaller lots in developed areas of Colorado Springs. Conversely, you might be able to find land cheaper than $5,000 per acre for larger 35-acre and up parcels in less developed parts of El Paso County.
Of course, the price you pay per acre for your Colorado dream home lot is just the down payment. You’ll need to factor in numerous other land acquisition costs, some of which will be commensurately larger with the size of the parcel. These costs may include:
- Land survey and boundary verification.
- Title search and insurance.
- Zoning fees, building permits, and variances, if needed.
- Water rights or permits.
- Soil testing.
- Impact fee (equivalent to a one-time tax to support schools, roads, or infrastructure).
- Geotechnical surveys for steep or rocky terrain.
- Utility connection fees and utility line extension.
- Grading and excavation.
- Environmental assessments.
- Wildfire or floodplain mitigation measures.
- Access road or driveway construction.
- HOA fees (in some suburban neighborhoods).
- Annual property taxes.
Recap: Tips for Choosing the Right Lot Size
Here’s the TLDR on choosing the correct lot size for your custom home build in the Colorado Springs Front Range region:
- Formalize your dream home vision, lifestyle, layout, and property/home must-haves.
- Factor in zoning and other regulatory/technical issues that may impact lot size.
- Consider your budget and how much you’re willing to pay for the land for your new home construction.
- Work with an experienced Colorado Springs-area home builder, like Murphy Custom Homes, who can help you analyze prospective properties before you buy.
If you’re ready to find the perfect lot for your Colorado Springs Front Range custom dream home, reach out to Murphy’s Custom Homes. With more than 35 years of experience designing and building luxury homes for our clients in the area, we are highly adept at helping people match their custom home vision with the perfect property for it. To learn more, contact us at (719) 488-8818.
FAQ: How much land do you need to build a house?
How much land do I need to build a house in Colorado?
Most custom homes in urban or suburban areas can be built on ⅓ to ½ acre, but rural homes often require 1 to 5 acres. Factors like zoning, utilities, septic systems, and desired outdoor space all influence the ideal lot size.
Can you build a custom home on a small lot?
Yes, but it depends on the zoning laws and your design. Small lots may limit your layout, outdoor living space, and options for future expansion. Always verify local building codes and setbacks.
How do I calculate how much land I’ll need for a home and a guest house?
Start by reviewing local zoning regulations for accessory dwelling units (ADUs). Then factor in required setbacks, access roads, septic spacing (if needed), and open space for usability.
Is it better to buy more land than you think you need?
In many cases, yes, especially for future additions, outdoor living, or privacy. But larger lots come with higher upfront and long-term development costs. Balance your wants with your budget and timeline.
What if the lot is in a floodplain or steep slope area?
Floodplain or sloped land can be buildable, but it adds complexity and cost. You’ll need soil testing, specialized engineering, and possibly permits or restrictions. Always consult with a custom home builder before purchasing.