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The Cost of Building a House
My close friend Joe is also building a home, but he is a bit further ahead in the process than we are. He was gracious enough to take some time and post about his experiences with some of the costs involved.
As some of you readers may consider building in the future, this may help in planning a building budget. Note that the costs below are based upon building a home in Newfoundland, but it should give you an approximate cost for other areas in Canada.
- $90-$95/sq ft of living space based on 2 story homes (ranch bungalows cost more/sq ft) - includes 10×10 patio, paved double driveway, and landscaping in front only.
- $15,000 for single garage
- $30,000 for double garage
- Add the cost of land
- Above price includes approximate allowances: $5000 for kitchen, $5000 for flooring, and $1000 for lighting.
As you can see, even though it costs a bundle to build a house, most builders only give you a skimpy allowance that will most likely NOT cover the expenses.
Also note that the prices given below are "contractor" prices which you will also mostly likely get if you are building through a reputable builder.
For kitchens, after getting many quotes, I found the general rule of thumb of $230 per linear foot of kitchen. My future kitchen is approximately 30 linear feet of kitchen cabinets/counter tops which would cost approximately $230 x 30 = ~ $7,000. Note that this estimate is based on a standard laminate counter top, not the fancy granite/marble stuff.
The floors, we're looking at getting mostly hardwood/ceramics and carpet in the bedrooms. The budget killer is if you want to get hardwood stairs which cost around $200/stair; extra if you have a landing, and super extra if you have a winding stair case. For us, we have around 12 steps + landing (thank goodness for no curve), quoted as $3000. For us, flooring worked out to be around $6.50/sq ft, so in total around $11,500 (1800 sq ft developed).
Onto the lighting, we're hoping to get some pot lights installed, but man, these little buggers are expensive! We were quoted approximately $100/pot light. We're going to get a few pot lights for the main floor, other than that, we're just getting cost effective (aka cheap), interior fixtures from the local hardware store. There's not doubt that we'll be exceeding the $1000 electrical/lighting allowance.
Something that most people neglect to consider are the exterior doors. Most builders give you a very low allowance for your front door, and you're bound to go over the given amount. We did anyways. Both our front/patio doors combined will cost us an extra $600
Thanks Joe for posting your research, do these numbers sound like the approximate cost to build in your area?
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27 Comments, Comment or Ping
1. The Financial Blogger
I never had my house built so far but $90-95/ sq ft seems very cheap! For example, I paid my 2002 house $157/sq ft of living (I live about 20 minutes away from Montreal).
Do you know how much does it cost to build another room in top of the garage? I think it is a great addition for a 2 floors house.
Another thing, I would strongly recommend to have hardwood floor in the bedrooms as well. While it is much more expensive than carpet, it adds a lot to the property value at resell. People with cats or dogs and those with allergies are getting more and more reluctant to carpets.
Sep 6th, 2007 @ 8:29 am
2. FrugalTrader
Hey FB, the $95/sq ft doesn’t include the cost of land or garage. Around here, a single plot of land costs at least $60k, and a single garage around $15k.
Sep 6th, 2007 @ 8:36 am
3. Pauls
Interesting article…thanks…
Around the Toronto area the cost to build is double that per sq ft. Getting a decent kitchen for under $20,000 is unheard of. My inlaws did their kitchen (very small galley style) for under $20K. It was cheap and it showed. The cupboards faded after 4 years and they started to come loose.
My kitchen was $40k. Granite, maple, custom. Well worth it IMO. Spend the $$ on kitchens and bathrooms. Every time I’ve gone cheap I’ve regretted it. Wait a couple years and do it right.
Sep 6th, 2007 @ 8:39 am
4. FrugalTrader
Hey Pauls, I think it really depends on which area of Toronto your building in. One friend of mine build a 2 story with double garage in North Toronto for $375k for 2500 sq ft.
So 2500 sq ft x $95 = $237,500
Double garage = $30,000
Over allowances on lighting/kitchen = $15,000
Sum: $282,500
And it’s probably accurate to say that a plot of land in Toronto is around $375000-282500 = $92,500.
However, I also have another friend who has a 1300 sq ft townhouse in Richmond Hill for $300k. :)
All in all though, I think the biggest difference in housing cost across the country is the land cost.
Sep 6th, 2007 @ 9:11 am
5. FourPillars
I’ll echo Pauls and say that there is no way you can get something built for that cheap.
FT - I originally thought the article was for a custom home ie you buy a wreck, knock it down and then get someone to build a new home. That would be about $200/ft. If you’re talking about someone who buys a home in a new subdivision then it’s probably cheaper.
$92k is one of the cheaper plots of land in the GTA. However like anywhere, different areas cost different amounts - basically the further away from the city the cheaper it is (with a lot of exceptions of course!).
Mike
Sep 6th, 2007 @ 9:17 am
6. icedragon
Well, seeing the price to build your house quits all the fun of doing it
Sep 6th, 2007 @ 10:51 am
7. nobleea
Building a new house is always an emotional time. I would have a tough time keeping my wallet in check. I agree that kitchen and lighting are some of the more important places to spend extra. Keep in mind that classy, raised panel cabinets will look better 10 yrs down the road than something that looks ‘modern’ now. This is even more the case if the cabinets are cheap to begin with.
If you’re on a budget, splurge on the things that are harder to upgrade in the future (kitchen). It’s relatively easy to upgrade appliances, lights, bathroom fixtures, and even flooring later when you have the money. Upgrading tub tile surrounds, adding multiple shower heads, skylights, low-e windows, etc AFTER the house has been built is much more expensive and inconvenient.
Also keep in mind that there will be a limit for how much upgrades your neighbourhood can handle. If no one else in the neighbourhood has hardwood, slate, and granite, you’ll have a hard time passing all the costs on at resale.
$95/sq ft is very cheap! Here in Edmonton, it’s closer to 200-250$ a sq ft I think. 3-4 years ago, it was about $90/sq ft. $100/pot light is nothing - some of my friends building now are getting charged $300/pot light for new construction.
Sep 6th, 2007 @ 12:17 pm
8. Telly
I would agree with nobleea, concentrate your dollars on the items that would be harder to upgrade in the future.
Potlights are incredibly easy to install (I watched my husband do it ;)) as long as the electrical is in place. If you really want potlights, I would definitely do that on your own after the fact and just go with cheap fixtures for now. Potlights are also quite cheap at Home Depot. You dont need to spend much money on them because the important factor is the light emitted since the entire fixture is sunk in anyway.
Sep 6th, 2007 @ 12:33 pm
9. FourPillars
I’ve done quite a few potlights in two of my houses, 38 to be exact. As far as doing them yourself, they aren’t any more difficult than installing an outlet or a light fixture and they are definitely easier than a ceiling fan. That said they are still quite a bit of work. Telly mentioned that they are easy “if the electrical is in place” - yup that’s true. If you are adding pots and there is no ceiling (that’s what I did) then it’s a relatively easy project but if the ceiling is in place then it’s quite difficult to run the wires.
I buy fairly cheap ones from Rona - expensive pots are a waste of money - when they are on, all you can see is the light anyways.
Electricians typically charge per outlet (an outlet is a light, outlet etc so potlights add up pretty quick.
That said - one of the mistakes I made on the first house was that I took an existing light fixture and attached 6 pots to it. I didn’t realize at the time there is a limit to how many “items” you can have on one circuit (12 I think) so this is something to keep in mind.
Another tip is avoid putting lights in insulated ceilings - you need to put a special metal box around the light and you should also put a special vapour barrier shroud around it - a lot of extra work!
Mike
Sep 6th, 2007 @ 12:53 pm
10. Rod Payne
I’ve said it here before, and I’ll say it again. Being able to do your own labour makes you worth your weight in gold (or, if you prefer, gas!). Here in Cranbrook my plot of land, at 60X100 feet, goes for $140,000 or more. New construction is on smaller lots for the same price - a new subdivision opened with 37 lots between $140,000 and $200,000 and sold out in 60 minutes with people on a waiting list. Rule of thumb here is $150/sq ft not counting land, and that’s for a house with no fancies (slate/skylight/etc.)
Sep 6th, 2007 @ 2:02 pm
11. FrugalTrader
I agree with you there Rod. I’m planning on developing my own basement when I get the chance. May take a few years, but i’ll learn a lot in the process. :)
Sep 6th, 2007 @ 2:30 pm
12. Rod Payne
Here’s an example. We redid the kitchen this summer, taking out everything back to the walls. We did:
Cabinets
Electrical
Plumbing
Range Hood
Painting
Finish work
Trades did:
Countertop
Stone backsplash (African Slate @$7.00 per tile)
My wife now insists that after watching the guy install the tile, that she can do as good a job herself (I believe her). At $3.75 per square foot, that is not a cheap boast. I immediately tore the 1978-era linoleum off the stairs and said “Have at it.”
The house also has 1978-era windows. I’ll be replacing those myself, too. I asked how much people charge here to replace windows. At $150-$250 (depending on size), and with 11 windows in the house, I’ll handle that myself, thank you very much.
Speaking of which, for cost comparison sake, any idea what your local costs for an Energy rated 3 foot high X 4 foot wide casement window runs? I bought one for my kitchen for just under $300, which was 50% off the sticker price.
Sep 6th, 2007 @ 2:40 pm
13. Pauls
FT - I like your attitude. Look at these projects as a chance to learn something new, and they can be fun if you are patient.
But know when you are in too deep and call a pro in!
Sep 6th, 2007 @ 2:44 pm
14. Gates VP
Hey FT, my uncle just a build a place in Winnipeg 2 years ago at $120/sq ft. $90-95 is really cheap and may actually border on “cheap”.
The subject of a house is a big issue with my fiancé and I. We eventually want a home of our home, but we want a top-quality one. After a recent trip to Vegas and one to Geneva, I’ve come to a whole new appreciation of the concept of quality.
Around the corner of Portage and Main in Winnipeg, there are several banks that have been standing for 100 years. A bus ride through Geneva showed evidence of this same commitment to quality. As did my room at the New York New York hotel in Vegas. The cabinets were real wood, the bathroom was tiled floor and marble.
There are a lot of ways to build a house, but the general North American battle plan doesn’t build a house to last 100 years. In fact I’d go as far to say that most houses are built to be completely renovated inside every 20 years or less. Paint, roofing, wallpaper & linoleum don’t even last 20 years. In a land of 20 and 40-year mortgages, I’d urge all homeowners to take this into account.
As to the “where to go expensive” and “where to cheap out” comments, I think it all depends on the nature of your home. Nobleaa makes a generally good point about tackling the tough stuff first. Of course, someone is going to talk about building houses equivalent to your neighbours so that you don’t bring down the “value” of your house.
When you build a place it’s important to decide the purpose of the house. Are you planning to sell the place in 5-10 years or live in the place for a long time? Putting marble that no one else can afford is no good if you plan to sell but it’s great if you plan to live there for 40 years.
(OH Yeah, is there an allowance for wiring the place? If you’re building a new place, please make sure that you have at least one Cat5e or Cat6 Network connection in every room (right alongside the phone jack and maybe the cable jack). People are already re-wiring their existing places for this very purpose. In 15 years, you’ll have computers in every room and wish that they had high-speed network/internet access and wireless doesn’t scale very well).
Sep 6th, 2007 @ 4:09 pm
15. Rod Payne
http://www.cbc.ca/money/story/2007/05/29/realestate.html
I haven’t taken the time to analyze the relative prices deeply (my employer does expect some productivity, you know). However, if average resale prices across Canada are comparable to $/sqft prices, then $90-95 in NL may not be out of line with the higher prices per square foot that we are quoting for points west of Atlantic Canada.
Sep 6th, 2007 @ 4:17 pm
16. FrugalTrader
Guys, as I mentioned before, the $/sq ft does not include the cost of land.
Gates, yes, the plan is to pre-wire every room with ethernet … maybe even the bathrooms. ;)
Sep 6th, 2007 @ 4:21 pm
17. Telly
Gates, I’m not sure I understand your point. You mention that “homes are built to be completely renovated inside every 20 years” but you also say that you want a “top-quality” home. 100 year old homes still need to be renovated (paint, roofing, etc.) So why go with really expensive, top quality stuff when it’s all going to be pulled out and renovated anyway? Generally people don’t renovate because the materials are in rough shape, they usually renovate because 70’s style wallpaper looks…well, like 70’s style wallpaper.
While it’s true that the fireplace and trim in our 80+ year old house is great, the real wood cabinets from the 60’s are not. Neither is the floor to ceiling (including ceiling!) tile in our bathroom! But that’s just because beige/pink tile is not in but hardwood and original trim is. Remember, not long ago, hardwood was out and most people carpeted over it. Things change. As expensive and classy as marble is now, remember that it wasn’t thought of that way not that long ago.
Sep 6th, 2007 @ 5:06 pm
18. FourPillars
FT - I think an unfinished basement is a perfect project for a part timer DIYer, mainly because there won’t be any time pressure to get it done.
Rod - kudos for tackling a kitchen - that’s one of the areas I would say a DIYer shouldn’t do for the simple reason that it’s too hard to go without a kitchen for an extended period of time. Another area is the bathroom if you only have one :)
Gates - are you planning to build your house out of stone? Don’t worry about top quality, the odds of you staying in one house long enough to see a brand new roof wear out is not very high. And who cares about paint quality, wallpaper and linoleum? That’s just minor cosmetic stuff.
Mike
Sep 6th, 2007 @ 5:30 pm
19. nobleea
Exterior finishes can make a big difference in how long before it has to be redone. Oddly enough, the longer lasting finishes tend to be associated with higher quality. Brick, stone, metal all last long. Stucco, aluminum/vinyl siding do not and end up looking dated quite fast.
The same goes for windows. Nice, all wood Anderson windows will age better than vinyl specials from home depot.
But let’s be realistic here…subdivision/tract homes are not designed to last 100 years. A custom built, architecturally designed home can though.
Sep 6th, 2007 @ 5:48 pm
20. Gates VP
Hey guys, you’ve caught me in my own little circular loop. I have indeed pondered the costs of building a house in stone :)
I think that my point was muddled here between two parts:
1. What are you planning for the house?
This is pretty fundamental to how you pick your components and cost things out.
2. What quality do you want?: I’ve heard of 100+-year old marble staircases. They become so worn that the stone actually dips a little in the middle. When was the last time you walked on a marble staircase :) Build a wooden staircase and it won’t last that long, of course, if you don’t actually expect the home to be around in 100 years, then it probably won’t matter.
So why go with really expensive, top quality stuff when it’s all going to be pulled out and renovated anyway?
B/c the point of top quality stuff is simply that you don’t intend to renovate it very often. Build me a kitchen that’s made to last 50 years and then I won’t need to renovate, just upkeep. Marble counters, tiled floors, hardwood cabinets… There are homes in Europe that have been standing for hundreds of years, but we don’t think that way when we build houses.
Hey maybe it’s just a pipe dream, but I’d like to build a house that lives longer than I do and hopefully longer than my kids too.
Sep 6th, 2007 @ 6:17 pm
21. FrugalTrader
Gates, are you married? If your wife is anything like mine, then she’ll definitely want to renovate when the styles start to fade out.
Also, who says that you’re going to live in the same house forever? Things change, life happens.
Sep 6th, 2007 @ 6:26 pm
22. nobleea
I have friends who are building houses at the moment. Their dream homes. But they are under 30, with no kids. Right now, they say these are the houses they’re going to retire in. I think it’s impossible to see 30-35 years in the future and make that claim.
Granted, they are large, very nice houses, but circumstances and needs change. Perhaps my experience is influencing me. Being from a military family, moving every 3 years was the norm. In fact, the longest I ever lived in one home was 5 years, and that was in a rental ending last year.
Sep 6th, 2007 @ 6:44 pm
23. telly
Gates, I can tell you that wooden stairways will last 100 yrs (our hous is at ~90 now). I can also tell you that hardwood floors will last 100 years. Have a look at my kitchen and bathroom and you’ll see they’ve both lasted 50 years (some days I wish they hadn’t ;)). Like FT said, you will want to renovate at some point regardless of the materials used. Lots of homes that weren’t constructed of marble are still around after 200 years, they’re just not the homes of former Kings and Queens.
Sep 6th, 2007 @ 7:00 pm
24. Craig
For a point of reference, Vancouver costs about $130-$150/sq. ft. These prices are about a year old now, but they have been continuously climbing in recent years due to the labour shortage in the construction industry. If you can find someone, you are lucky if you can get them to reliably show up or even finish the job. Sometimes these contractors are floating between jobs and they service the highest paying jobs first.
It sounds like we should all sell our houses in the big cities and move to the east coast :)
Sep 7th, 2007 @ 1:28 pm
27. Gwaine
The pot light makes me laugh. Our builder wanted $250 per light. The 9 lights would have cost us $2,250. We bought a kit from Home Depot and did them ourselves for around $600 all up.
Mar 28th, 2008 @ 12:24 pm
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