HBA Publishes New Local Government Impact Fee Study

Download Metro Denver Development Fee Executive Summary

The Home Builders Association of Metro Denver has completed a comprehensive study analyzing the development fees assessed on new housing construction across the 16 leading local governments in the region. As Colorado grapples with a growing housing affordability crisis, this study highlights a key—but often overlooked—contributor to rising home prices: government-imposed development fees.

These fees—comprising building permit fees, use taxes, impact fees, and system development (water tap) fees—are necessary to support local infrastructure but significantly increase the cost of new home construction. On average, builders in the metro Denver area pay approximately $68,000 in development fees for a single-family detached home and $52,000 for a single-family attached home.

By providing side-by-side comparisons and detailed breakdowns, this study helps builders, policymakers, and stakeholders better understand how local development fees influence housing affordability—and where reform may be most impactful.

An executive summary of the study’s findings is now available on the HBA’s website here. More information or general inquiries can be directed to Albert Bozoki, Government Affairs Coordinator, at abozoki@hbadenver.com.