Scrapes are Back in Force, Transforming Denver Neighborhoods

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

โ€œYou see the highest concentrations in our most popular neighborhoods,โ€ said 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 the Denver Office of Community Planning and Development, demolition permits climbed from roughly 100 per year in the mid-1990s to nearly 400 in 2007, before dropping to just 92 in 2011. As the market recovered, permits rose again โ€” reaching 373 last year, signaling strong renewed demand.

โ€œScrapes have tracked the housing market almost exactly,โ€ said Dave Jackson, owner of Jackson Design Build in Centennial.

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

After pulling back following the 2008 downturn, Dave Jackson is once again investing in speculative home development. This month, his firm is marketing a new project โ€” a pair of 3,000-square-foot duplexes at 611 and 615 S. Clarkson Street in Denverโ€™s West Washington Park neighborhood.

Jackson purchased and demolished a 1,760-square-foot duplex built in 1921 for $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 at $889,000, offers approximately four times the space of the original duplex and incorporates modern amenities and energy efficiency 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. Wealthier owner-occupants are increasingly purchasing old properties to build their dream homes.

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

Mattingly noted that Sloanโ€™s Lake 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€ said Champine. โ€œBy rebuilding in established neighborhoods, families can stay close to their jobs, schools, and urban amenities.โ€

Each demolition must pass a landmark preservation review 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 prefer larger, modern homes that mirror the spaces they grew up in.

โ€œYoung professionals didnโ€™t grow up in 700-square-foot bungalows,โ€ said Kathleen Genereux, Realtor at 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 in northwest Denver (Berkeley, Highland) and the park neighborhoods (Washington Park, Platt Park, University Park). As lots become scarce, redevelopment is spreading into SunnysideRegisSloanโ€™s Lake, and Hilltop.

Demolitions remain rare in southwestern and northeastern Denver and most suburbs, though Wheat Ridge 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 for 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.