WHAT IS THE COST PER SQUARE FOOT FOR CUSTOM HOMES?

Many people ask the question, “What is the cost per square foot (CPSF) to build a custom home?” While this question may be relatively easy to answer when building a production or semi-custom home, there is just no easy answer when building a custom or luxury home. There are so many variables to consider. Luxury homes, in particular, include so many details and customized features that are specifically designed for each homeowner and their lifestyle. In this article, we provide a few examples and break down the reasons the cost per square foot can vary so widely. In addition, the fluctuation in materials, inflation, and labor costs can dramatically impact the ‘average’ price per square foot, from one year to the next.

Another variable that largely impacts a home’s cost is the site work and preparation of the land. There are large variations of cost based on topography, if the Lot is wooded or cleared, length of the driveway, stormwater management, sediment control, jurisdiction, building permit fees, impact fees, and more.

With all of these variables you can easily see why a luxury custom home really can’t be given a standard cost per square foot price. The price of your home will be largely determined by:

Style & Complexity – What kind of architectural details are specified? How many levels is the home? Are there intricate elements of design?

Quality & Level of Finish – Do you want unique one-of-a-kind materials and selections? Do you want the top of the line, or moderate grade appliances and flooring?

Size & Scope – A 4,000 square foot home (conditioned area) may include a two-car unheated garage; whereas a 6,000 square foot home may include a three-car heated garage. With more size often come luxuries like multiple porches and decks, a larger outdoor area or pool, etc.

Your lifestyle, preferences, and expectations will largely impact the price per square foot. We recommend including a reputable builder early in the design phase. If you are budget-conscious, you’ll want to ensure that your design expectations are compatible with your budget. An experienced and reputable builder can offer suggestions, and work collaboratively with your architect, on ways to value-engineer your project to ensure your expectations and budget are aligned.

One important final note is that many homeowners enter the design phase with a budgeted cost per square foot. However, if the builder is not part of the design phase, they may find that the designs far exceed their initial budget. If you are budget-conscious, you’ll want to ensure that your design expectations are compatible with your budget. This is why, we believe, it’s important to include an experienced and reputable builder in the design phase. By working collaboratively with the architect, the builder can offer suggestions on ways to value-engineer your project to ensure your expectations and budget are aligned.