November 6, 2015
As a custom homebuilder in Saskatoon, we often get asked the question “what does an average house cost” or “what is the average cost per square foot for a new home”. Those are some tough questions to answer! I liken it to a question along the lines of “what does a car cost”, only 100 times more complex!
In order to develop any kind of budget estimate, at least 3 key factors need to be determined:
1. Size of the home.
This one seems obvious right? Larger homes will generally cost more money. That is generally the case. However, not everyone realizes that cost per square foot generally gets lower as the house gets bigger! This is because there are certain fixed costs (that don’t change much with house size) that exist in every home. Some examples would be the land cost, heating system, plumbing, electrical, etc).
2. Style of the home
The style of home you select will have an impact on the house price. This is because different home styles have different costs to build. For example, a 2 storey home is quite an efficient design. If you consider an 1800 sq ft home, there would be 900 sq ft of basement, 900 sq ft on each of the upper levels, and 900 sq ft for the roof to cover. When looking at the same square footage on a bungalow you would have 1800 sq ft of basement, 1800 on the main, and 1800 sq ft for the roof to cover. In this example you can see how an 1800 sq ft bungalow would likely cost more to build than an 1800 sq ft 2 storey. The only caveat here is that you also need to look at how much house you get in both scenarios (not just how much house above grade). If the 1800 sq ft bungalow was fully developed, there would be 3600 sq ft of living space. The 1800 sq ft 2 storey can only provide a maximum of 2700 sq ft.
3. Finishing level
The final key factor in the cost of a home is the level of finishing you prefer. Two houses can be built to the exact same size and style but have dramatically different price points due to the level of finishing. Some examples of details that need to be determined are exterior finishing (stucco? siding?), flooring types (hardwood? tile? carpet?), kitchen material and approximate size, countertop material (quartz? granite? laminate?), etc. The list goes on.
This should provide some insights into some of the general factors that affect the price of a custom home in Saskatoon. Further information about the costs to build a home can be found in our free download guide on our Tips and Tools page. If you have additional questions about a new home in Saskatoon feel free to contact us!