THE COST OF BUILDING A HOME
Understanding the costs that go into designing and building a custom home.
Pricing out and estimating your custom home build.
Building a custom home is a major investment, but determining what it will cost is rarely as simple as multiplying the home’s size by an average price per square foot.
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Every property, design and level of finish is different. Site conditions, municipal requirements, architectural complexity, building-performance goals and material selections can all influence the final investment.
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Understanding these variables early can help you establish a realistic budget, evaluate potential properties and make more informed decisions throughout the process.
What Does It Cost to Build a Custom Home in the Chicago Suburbs?
There is no single price that applies to every custom-home project. The answer depends on much more than square footage.
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A complete project budget generally includes five major cost categories:
LAND ACQUISITION
The cost of acquiring the property depends on the community, lot size, school district, walkability, transportation access and neighborhood demand.
A property’s purchase price is only part of the equation. Zoning restrictions, redevelopment requirements and existing site conditions can influence what can be built and how much the complete project will cost.
LOT DEVELOPMENT
Before construction can begin, the property may require demolition, clearing, excavation, grading, utility connections, stormwater management and other site improvements.
These expenses can vary considerably based on soil conditions, drainage requirements, utility access and municipal regulations.
ARCHITECTURE & DESIGN
This category may include architectural plans, engineering, interior design, surveys, renderings and other professional services needed to develop a construction-ready home.
The size and complexity of the design, along with the professionals involved, will influence the overall investment.
ROUG CONSTRUCTION
Rough construction includes the structure and major systems of the home, such as the foundation, framing, roofing, exterior wall assemblies, windows, plumbing, electrical, HVAC and insulation.
Home size, structural complexity, material choices and building-performance goals all affect this portion of the budget.
FINISHES
Finishes include the visible materials, fixtures and features that give the home its character. Cabinetry, countertops, flooring, tile, appliances, lighting, plumbing fixtures, millwork and exterior materials can create a significant range in cost.
Finishes are often one of the most flexible and highly personalized portions of a custom-home budget.
See the Estimated Cost of Each Category in This Free Guide To Home Building
How much should you plan for land acquisition, lot development, architecture, construction and finishes?
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The Free Guide to Custom Home Building includes specific planning ranges for each of the five major cost categories, along with additional guidance to help you understand where your investment goes.
Why Cost per Square Foot Does Not Tell the Whole Story
Price per square foot can be a useful starting point, but only when everyone agrees on what the number includes.
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Ethos considers the entire project rather than relying solely on a single generalized square-foot number.
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WHAT IS INCLUDED IN THE COST/SQUARE FOOT?
Some estimates include only the construction of the home. Others may include design fees, site development, builder fees or interior finishes. Land is generally excluded.
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HOW COMPLEX IS THE HOME?
Two homes of the same size can also have very different costs depending on their architecture, structural complexity, and building systems.
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ARE ALL SELECTIONS DEFINED/INCLUDED?
High-end finishes, appliances, and design selections can vary your end price greatly, so manage to your budget, not to a blind cost per square foot.
What Has the Greatest Effect on Custom-Home Costs?
The biggest variables that affect your end cost include property and location, site conditions, architectural complexity, building-performance goals, and materials and finish selections.
Plan Your Custom Home With Greater Clarity
A successful budget considers the property, design, construction requirements and finish expectations together.
Download the Free Guide to Custom Home Building to see the estimated price ranges and learn more about the decisions that shape the cost, timeline and performance of a custom home.
