As you begin planning your custom home, one of the first things you’ll need to consider is cost. From choosing the right lot to selecting your finishes, every decision has a price tag. Understanding these costs upfront is key to making your dream home a reality. Over the past few months, you may have found yourself wondering about questions like:
- What is the cost to build a house in Prince George, BC?
- How much does it cost to build a home on your own land?
- What is the construction cost for a custom home?
- How much is the total cost to build a custom home?
- What is the average cost per square foot of a custom home?
The truth is, building a custom home is a complex process. There are hundreds of decisions you could make around materials, services, and finishes that will impact your final budget and timing. As a result, there is no definitive answer to the question of “how much it will cost to build a house in Prince George”. The honest answer is: it depends.
Wondering About Budgets For Your New Build?
Our custom home financing guide outlines how construction financing work plus identifies cost ranges for various Lithium One homes.
Understanding The Cost Of Building A Custom Home
There are four cost components that play a major role in shaping the final price of a custom built house. By understanding these cost drivers, you can plan your budget more accurately and make informed decisions along the way. The main factors in the cost to build a house are:
- Lot Costs. Purchasing a serviced lot in a new Prince George subdivision typically costs between $150,000 to $275,000. This expense makes up a substantial portion of the cost to build a house. Depending on the price, it can be as high as 1/3 of your total expenditure! Purchasing a lot of acreage in the Regional District can be more reasonable. However, a rural property requires services such as water, sewer, hydro, gas, and more. Depending on how rural the lot is, the cost to bring services can add up quickly.
- Permit Costs. Constructing a new home requires building permits. Depending on where you build, your permit will be issued by the City of Prince George or the Regional District. The building permit process ensures your home meets the standards required by the BC Building Code and local bylaws. Your new home construction may also involve consultations with engineering firms. There will be service fees associated with that, as well.
- Material Costs. Building a custom home requires a variety of materials. They collectively make up a significant portion of your total investment. While some material costs are non-negotiable (such as foundational elements and structural requirements), others have some flexibility. They can be adjusted based on your budget, quality expectations, and design preferences. You and your builder can collaborate together on these material costs and strike a balance between quality, design and budget.
- Labour Costs. Hiring skilled trades and labour is another cost driver in construction. From engineers, carpenters, and electricians to plumbers and finishers, these professionals contribute bringing your dream home to reality. Labour rates vary depending on the availability of tradespeople and the skills they bring to the job. High-quality craftsmanship may come at a premium, but at Lithium One Homes we prefer to work with experienced trades. The resulting quality difference is noticeable.
Understanding The Cost Per Square Foot Metric
Many clients in the early stages of planning a custom home ask builders about their average cost per square foot. While this metric may seem like a simple way to estimate the cost to build a house, the reality is far more nuanced. By now you know there are many factors that affect the cost to build a house. Some of these can also impact a cost per square foot estimate. Here’s why relying on this metric can actually be misleading:
- Calculation Method. Not every builder calculates cost per square foot the same way. Some builders use the square footage of the above-grade floors. Others add up the square footage of all developed spaces, which includes the basement. The way your builder calculates this can create an artificially low cost per square foot.
- Design Complexity. Not every custom home uses the same building plans. Custom homes with complex designs will cost more, even if the square footage is the same. For example, a basic rectangular house plan will have a lower cost per square foot when compared to a custom home with complex roof lines.
- Construction Quality. Not all homes are constructed to the same level of quality. One 3,000 square foot home might be built by an inexperienced team using the lowest grade materials. The same home plan could be built by experts making selections that will last for decades. The square footage is the same, but the results and even long term cost will be different. Going for a lower cost to build a house today can result in construction issues and higher expenses tomorrow.
- Plan Configuration. Not all homes feature the same layout or size. There is a general principle in building: as the size of the house goes up, the cost per square foot goes down. In a smaller home, the percentage of space allotted to more expensive rooms like the kitchen is higher. There is less square footage to spread out that expense. A house plan with a double garage will also impact the cost per square foot pricing, as the space of the garage is not added to the square footage of the house.
Estimating The Cost To Build A House The Accurate Way
It’s tempting to try to get a quick and easy number from a builder, and use that to shop around. As we have outlined above, a more nuanced approach is needed for a decision this complex. Developing a home plan and accurate cost estimate requires an investment of time.
At Lithium One Homes, we take this process seriously and work closely with you at every step of the way. You’ll start by meeting with our in-house designer, who will learn more about your dream and your budget. She will develop a house plan that is tailored to your specifications. From there, our designer will create a detailed pricing estimate based on your selections. Throughout the process, she will collaborate with you to adjust the design in order to align with your budget and financing.
The final plan will reflect your preferred location, home style, and quality standards. At the end of the process, you’ll have a much more precise estimate – one that’s far more reliable than a quickly calculated rough average.
Free Custom Home Financing Guide
In our guide, you’ll discover 5 tips for financing a custom home, see examples of what’s in your price range, and view interior layouts.
