Canadoo Blog

Custom Home Construction Costs

The cost of building a home is significant, no matter how you break it down. Still, depending on your location, the cost of labour and materials, the size of your home, and even the design and layout of your home, the price tag on a new house can vary significantly. Still, building a custom home gives you incredible flexibility to create a house that meets your functional and style needs precisely. And while it can be difficult to define explicitly custom home construction costs, there are many factors to consider that will help you develop your budget.

First, understand that pre-fabricated and modular homes are much less expensive than custom homes to build. Many home owners choose to go the custom home route because they have specific design ideals or functional needs. When you build a custom home, you have control over every detail but this comes at a cost – not only monetary, but when it comes to time invested as well. Again, whether you hire a contractor, architect, or other design professionals, you’ll generally notice the cost for custom homes ranges between $150 and $500 per square foot. Location, materials, size, and features of the home as well as labour will all contribute to overall costs.

So then, let’s talk a little bit more about these elements. We won’t spend much time talking about location, but keep in mind if you’re living in a real estate market with higher home prices, your custom home will cost more too. You’ll also notice marginally higher costs on materials in these locations – regardless of whether you are choosing premium or more affordable materials. Taking some time to consider material costs and factor them into your budget is critical. Also remember that included in these ‘material’ costs should be a budget for specialized equipment which may or may not be provided by your builders. Working closely with your contractor, you should carefully plan your project so you can project these costs at every step of the build.

You’ll also need to consider labour costs. Professionals tend to be expensive. An architect usually charges between $50 and $150 an hour for their services. You’ll also need to hire engineers which might run you upwards of $150/hour or more.

Land surveyors, framers, roofers, plumbers, electricians, and other professionals will all add to your budget. And we haven’t even started to talk about interior or exterior finishing yet.

Indeed, when planning your custom home build there are many costs to consider – foundation, framing, finishing, and systems installation (e.g. HVAC, plumbing, electrical) are just a few of the components of a custom home build. As you can clearly see, there are many balls in the air when you build a custom home – the end product will be a home that is designed specifically to your needs but you must be prepared to pay the price when it comes to budget and time.