By Lisa Snyder, Denver Real Estate Agent
Cherry Hills Village has long been recognized as one of Colorado’s most exclusive residential enclaves. With expansive estate lots, architectural diversity, and an unmatched sense of privacy just minutes from Denver, it’s no surprise that many buyers consider building a custom home here rather than purchasing an existing property.
But beyond the lifestyle appeal, a common question I hear from clients is: Is building a custom home in Cherry Hills Village actually a good investment?
As a Denver real estate agent who works extensively in Cherry Hills Village, I’ve guided clients through both custom builds and resale purchases. This guide breaks down the financial, lifestyle, and market factors to help you determine whether building a custom home in Cherry Hills Village aligns with your long-term goals.
Why Cherry Hills Village Attracts Custom Home Buyers
Cherry Hills Village offers something increasingly rare in metro Denver: generous land parcels paired with strict zoning that protects the community’s character. For buyers with a vision, this creates an ideal environment for custom construction.
What Draws Buyers to Build Here:
- Large, Buildable Lots with privacy and mature landscaping
- Prestigious Address with enduring market demand
- Architectural Freedom within thoughtful guidelines
- Proximity to Denver Tech Center and Downtown Denver
Custom homes here are not speculative builds—they’re carefully designed estates intended to stand the test of time.
Land Availability and Lot Values
One of the most significant factors in evaluating investment potential is land value. In Cherry Hills Village, land is limited and highly sought after, which supports long-term appreciation.
What Buyers Should Know:
- Vacant Lots Are Scarce: Many are already developed, making remaining parcels valuable
- Teardowns Are Common: Buyers often purchase older homes for the land itself
- Lot Size Drives Value: Larger parcels command a premium and offer more design flexibility
Because land scarcity continues to increase, well-located lots in Cherry Hills Village tend to appreciate regardless of market cycles.
Construction Costs vs. Market Value
Building a custom home requires careful budgeting, particularly in a luxury market. Construction costs in Cherry Hills Village reflect high-end materials, skilled labor, and elevated design standards.
Key Cost Considerations:
- Architectural & Design Fees
- Luxury Materials & Finishes
- Smart Home & Energy Systems
- Site Work, Landscaping, and Infrastructure
While custom construction often costs more upfront than purchasing an existing home, the end result is a residence tailored to current buyer preferences—often positioning it favorably in the resale market.
Customization as a Value Driver
One of the strongest arguments for building custom is the ability to design a home that aligns with modern luxury demand rather than retrofitting older spaces.
High-Value Custom Features:
- Open, Light-Filled Floor Plans
- Main-Level Primary Suites
- Wellness Amenities like gyms and spa baths
- Integrated Smart Home Technology
- Indoor-Outdoor Living Spaces
Homes designed with these features often outperform dated properties when it comes time to sell.
Zoning, Regulations, and Long-Term Protection
Cherry Hills Village is known for its careful zoning and planning regulations, which can feel restrictive but ultimately protect investment value.
Why Regulations Matter:
- Prevents Overdevelopment
- Preserves Estate-Scale Living
- Maintains Neighborhood Cohesion
- Supports Long-Term Property Values
When you build in Cherry Hills Village, you’re investing in a community that prioritizes quality over density.
Market Demand for New Construction Homes
Luxury buyers in Cherry Hills Village consistently seek move-in-ready, modern homes—especially those that reflect today’s lifestyle standards.
Why New Construction Performs Well:
- Limited Supply of New Builds
- Strong Demand for Turnkey Luxury
- Appeal to Out-of-State Buyers relocating from high-cost markets
- Lower Maintenance Concerns compared to older estates
A thoughtfully designed custom home often attracts a wider pool of qualified buyers if and when it enters the market.
Time Horizon: Short-Term vs. Long-Term Investment
Building a custom home in Cherry Hills Village is generally best viewed as a long-term investment rather than a short-term flip.
Ideal Investor Profile:
- End-Users Planning to Live in the Home
- Buyers Focused on Lifestyle and Legacy
- Families Seeking Multigenerational Value
While appreciation is likely, the true return often comes from years of enjoyment combined with strong resale positioning down the road.
Risks to Consider Before Building
No investment is without risk, and custom construction requires careful planning.
Potential Challenges:
- Construction Delays or Cost Overruns
- Design Choices That Limit Resale Appeal
- Market Timing Considerations
- Permitting and Approval Timelines
Working with experienced architects, builders, and a local real estate expert like Lisa Snyder can help mitigate these risks significantly.
Comparing Custom Build vs. Buying Existing
For some buyers, purchasing an existing luxury home may make more sense. The decision often comes down to priorities.
Custom Build Advantages:
- Tailored design and modern systems
- Long-term satisfaction
- Potential resale premium for newer homes
Existing Home Advantages:
- Faster move-in
- Predictable pricing
- Established landscaping and character
Understanding both paths ensures you make a decision aligned with your financial and lifestyle goals.
Frequently Asked Questions
Is building a custom home more expensive than buying?
Often yes upfront, but custom homes can offer stronger long-term value and lower renovation costs.
Do custom homes appreciate faster in Cherry Hills Village?
Well-designed custom homes on premium lots tend to perform strongly due to limited inventory.
How long does it take to build?
From design to completion, most custom builds take 18–30 months.
Are teardowns a good option?
Yes, teardowns are common and can be an effective way to secure prime land.
Can a custom home be a good legacy investment?
Absolutely. Many families view custom homes here as multigenerational assets.
Making the Right Decision in Cherry Hills Village
Building a custom home in Cherry Hills Village can be an excellent investment—particularly for buyers who value location, land, and long-term quality over short-term gains. With limited land availability, consistent luxury demand, and strong zoning protections, custom homes here are positioned for enduring appeal.
If you’re considering building in Cherry Hills Village or weighing your options between new construction and existing homes, I’d be happy to guide you through the process.
Connect with me directly—Lisa Snyder—to explore opportunities and make informed decisions in one of Denver’s most prestigious communities.
If you’re considering building in Cherry Hills Village or weighing your options between new construction and existing homes, I’d be happy to guide you through the process.
Connect with me directly—Lisa Snyder—to explore opportunities and make informed decisions in one of Denver’s most prestigious communities.
