Scrapes are Back in Force, Transforming Denver Neighborhoods

DENVER, CO โ€”ย Love them or hate them,ย home scrapesย are making a major comeback in Denver, driven by homebuyers who wantย suburban-sized livingย in the heart of the city.

โ€œYou see the highest concentrations in our most popular neighborhoods,โ€ saidย Caryn Champine, Director of Planning Services for the City of Denver.

Whatโ€™s Fueling the Comeback

A โ€œscrapeโ€ involves purchasing and demolishing an existing house to rebuild a larger, modern home on the same lot. The practice mirrors the housing marketโ€™s ups and downs.

According to theย Denver Office of Community Planning and Development, demolition permits climbed from roughlyย 100 per year in the mid-1990sย to nearlyย 400 in 2007, before dropping toย just 92 in 2011. As the market recovered, permits rose again โ€” reachingย 373 last year, signaling strong renewed demand.

โ€œScrapes have tracked the housing market almost exactly,โ€ saidย Dave Jackson, owner ofย Jackson Design Buildย in Centennial.

A Builderโ€™s Perspective: Jackson Design Build Returns to Speculative Projects

After pulling back following the 2008 downturn,ย Dave Jacksonย is once again investing in speculative home development. This month, his firm is marketing a new project โ€” a pair ofย 3,000-square-foot duplexesย atย 611 and 615 S. Clarkson Streetย inย Denverโ€™s West Washington Parkย neighborhood.

Jackson purchased and demolished aย 1,760-square-foot duplex built in 1921ย forย $460,000, replacing it with two contemporary homes featuring:

  • Basementsย for added living space.
  • Large windowsย providing natural light.
  • Coffee-brown brick exteriors, complementing local architectural styles.

Each home, listed atย $889,000, offers approximately four times the space of the original duplex and incorporatesย modern amenities and energy efficiencyย that older homes often lack.

โ€œOn the buy is where you make your margin,โ€ Jackson said. โ€œHomes that sold for $250,000 in 2009 now go for about $450,000.โ€

The Scrape Buyer Profile

Unlike the last boom, todayโ€™s scrapes arenโ€™t dominated solely by developers. Wealthierย owner-occupantsย are increasingly purchasing old properties to build their dream homes.

โ€œDemand from end-users is higher than Iโ€™ve ever seen,โ€ saidย John Mattingly, Principal atย Chalet, which designs and builds custom homes priced overย $1.5 million. โ€œBuyers with cash can outbid spec builders โ€” theyโ€™ll write a check on the spot.โ€

Mattingly noted thatย Sloanโ€™s Lakeย has emerged as an up-and-coming community for high-end construction, with new builds raising the bar for design and pricing throughout the area.

City Views: Keeping Residents in Denver

City planners see scrapes as a way to retain families who might otherwise move to the suburbs.

โ€œA lot of growing families need more space,โ€ saidย Champine. โ€œBy rebuilding in established neighborhoods, families can stay close to their jobs, schools, and urban amenities.โ€

Each demolition must pass aย landmark preservation reviewย to ensure the existing structure isnโ€™t historically significant. While the city doesnโ€™t regulate home design aesthetics, some residents have voiced concerns about scrapes altering neighborhood character.

With more owner-driven projects and fewer speculative builds, Jackson and Mattingly believe those complaints are easing.

โ€œHomeowners care about curb appeal โ€” they want designs that fit but still feel modern,โ€ said Jackson.

Changing Demographics and Design Trends

Todayโ€™s buyers often preferย larger, modern homesย that mirror the spaces they grew up in.

โ€œYoung professionals didnโ€™t grow up in 700-square-foot bungalows,โ€ saidย Kathleen Genereux, Realtor atย Cherry Creek Properties. โ€œThey want open floor plans, basements, and fenced backyards โ€” but close to the city.โ€

While many buyers could renovate instead of rebuild, the economics of Denverโ€™s market often favor full replacement. Rising land values and surging demand make new construction more profitable โ€” assuming zoning and financing align.

A Geographic Shift

Scrapes are concentrated inย northwest Denverย (Berkeley, Highland) and theย park neighborhoodsย (Washington Park, Platt Park, University Park). As lots become scarce, redevelopment is spreading intoย Sunnyside,ย Regis,ย Sloanโ€™s Lake, andย Hilltop.

Demolitions remain rare inย southwesternย andย northeastern Denverย and most suburbs, thoughย Wheat Ridgeย could soon see more activity.

Nearby Jacksonโ€™s current project, rebuilding is already visible โ€” a new home is rising next door, and another across the street is adding a second story.

โ€œThereโ€™s a scarcity of buildable lots in Denver,โ€ Jackson said. โ€œYou have to fight for every parcel โ€” and that drives prices higher.โ€

The Ongoing Evolution of Denverโ€™s Neighborhoods

Denverโ€™s scrape trend underscores the cityโ€™s evolution from a bungalow-dotted landscape into a hub forย urban infill, contemporary design, and adaptive reuse. Builders and homeowners alike are redefining what urban living means โ€” bigger spaces, smarter sustainability, and tailored functionality โ€” all without leaving the neighborhoods that define Denverโ€™s character.

โ€œItโ€™s competitive, creative, and constantly moving forward,โ€ Jackson said. โ€œThatโ€™s what makes building in Denver exciting.โ€

Author Bio

Picture of Billy Jackson

Billy Jackson

Partner, Jackson Design Build

Specializing in technological innovation and building sciences, Billy Jacksonโ€™s jobsite management and meticulous attention to detail enable Jackson Design Build to deliver one masterpiece after another. His close collaboration with clients fuels the companyโ€™s success as a leading Metro Denver custom home and commercial builder and remodeler.

Billy is a certified Lead Safe Professional, licensed real estate broker, and holds the 30-Hour OSHA Safety Certification. A Colorado State University graduate with a BA in Construction Management (2006), he brings 11 years of home building and commercial construction experience, joining Jackson Design Build in 2013. Billy loves sharing his remodeling and home building knowledge with the community through his informative blogs.