Building a home is a major investment. It requires time and patience in preparation. Knowing how much you need to spend is an excellent starting point to plan this project efficiently.
The cost of building a home requires research and several inquiries since getting the ballpark numbers can be tricky. Builders may give their quotes based on factors like the total floor area, type of finish, and overall house design. As an aspiring homeowner, you’d do well to learn the basics of project costing and other details that affect the prices.
Here’s a quick guide on the costs of building a home in 2023.
1. Primary Factors Affecting Construction Costs
Construction costs may fluctuate throughout the year. However, construction experts and local home contractors can predict price changes depending on these factors:
- Project Location: Your location is crucial to the overall home building costs. The construction material available in your area can make the project more affordable or expensive. You must also consider hiring a local contractor to reduce travel costs. For instance, if your target location is in Sydney’s east or southeast areas, you may look for home builders in the Eastern Suburbs.
- Material Prices: These can have a significant impact on the overall cost of a construction project. As the cost of materials such as lumber, steel, and concrete increases, the cost of the project will also increase.
- Labor Costs: The lack of workers in the construction industry makes labor costs even more expensive. Asking experts in your location is the best way to get the current rates.
After evaluating these factors, it’s time to dig into the different bases of construction costs according to builders and contractors.
2. Cost Based On Total Floor Area
Most contractors give an initial quote based on the total floor area or project scale. In short, a larger house is more expensive to build than a smaller one. Therefore, it’s best to specify your preferred home size as you talk to different builders.
The cost of building a home can range from USD$100 to more than USD$500 per square foot. These prices may increase depending on other factors discussed below.
When determining the total floor area, you may start with your required number of bedrooms. On average, you can build a two-bedroom house for around USD$100,000 to USD$480,000.
3. Cost Based On Type Of Finish
The type of finish is a significant factor in a price increase or reduction. Building a home from the ground up allows you to choose finishes to fit your budget, including exterior and interior wall cladding, flooring material, and fixtures.
- Low-Cost Finish: A low-cost finish typically ranges from USD$100 to USD$150 per square foot. It involves using inexpensive finishing materials for a basic yet functional home design. The key to maximizing this type of build is focusing on the essentials over aesthetics.
- Mid-Range Finish: A mid-range finish ranges from USD$150 to USD$200 per square foot. Builders will use low-end and mid-range finishing materials to balance function and beauty.
- High-End Finish: The cost of high-end homes has no limit. It involves using luxurious materials from structural design to interior detailing. The price can start at USD$500 per square foot and go up to thousands.
Most aspiring homeowners choose a mixture of low-end and high-end materials to create a beautiful home on a budget. The key is determining where to splurge and where to save.
4. Cost Based On Kitchen And Bathroom Sizes
The kitchen and bathroom are the most expensive parts of the house due to plumbing and furnishing. These areas are also at risk of water damage, so the best material choices and expert craftsmanship are necessary.
- Average Kitchen Costs: The prices may range from USD$100 to USD$300 per square foot, depending on your choice of countertop, flooring, sink, cabinet, and built-in appliances. For instance, popular countertop choices like quartz and granite typically cost USD$50 to USD$200 per square foot, including installation.
- Average Bathroom Costs: A bathroom’s overall cost depends on the tilework, waterproofing, and plumbing. You may choose affordable tile options like porcelain and ceramic to reduce prices. Then, allot a significant portion on waterproofing and plumbing to prevent water damage.
Like with the other parts of a home, you must prioritize functionality.
5. Cost Based On Design
Your home design affects the total construction costs. For instance, you can build a traditional house with a simple exterior and interior finish for the usual prices of low-end to mid-range construction.
Modern and contemporary homes are typically more expensive to build. Some features, like floor-to-ceiling windows and complex exterior textures and shapes, require high-end materials and expert craftsmanship. You’ll also need to consider the expenses of hiring an architect and interior designer to design your house.
Conclusion
Building a home is one of the best ways to see and experience the fruit of your labor. The best way to achieve it is to work with expert builders who will guide you through the budgeting, planning, and construction process.
