custom residential

Why Designing and Building a Custom House is Better Than Buying

Are you in the thrilling process of finding a new home? The decision to buy a house is a huge commitment, but have you considered the benefits of designing and building a custom house? While purchasing an existing home may seem like a convenient option, there's something truly exceptional about customizing every aspect of your dream home. In this blog post, we'll explore why designing and building a custom house is an incredibly rewarding choice, and more accessible than you might think.

Unleash Your Creativity

One of the most compelling reasons to choose a custom house is the opportunity to unleash your creativity. When you buy an existing property, you may have to make compromises and settle for features that don't align with your personal style, taste, or needs. On the other hand, with a custom house, you have the freedom to collaborate with a design team to craft a home from the ground up according to your preferences.

From the layout, architecture, and interior design elements to the selection of materials and finishes, every detail is under your control. You can create spaces that reflect your personality and accommodate your specific needs, whether it's a spacious open-concept living area, a home office with plenty of natural light, or a luxurious master suite. The possibilities are boundless.

Maximize Functionality

Another significant advantage of designing and building a custom house is the ability to maximize functionality. Existing homes might have limitations in terms of layout, storage, or access to natural light. By starting from scratch, you can optimize the entire design to suit your lifestyle perfectly and ensure the home will function according to how you live.

Consider your daily routines and the flow of your household. Are you an avid entertainer? Then you can design a welcoming and expansive dining area that seamlessly connects the kitchen and living spaces. Do you love spending time outdoors? Plan for a beautiful backyard with a deck or patio, providing an oasis for relaxation and alfresco gatherings.

Creating a custom house allows for clever storage solutions, smart home technology integration, eco-friendly features, and energy-efficient design choices. By incorporating these elements, you can ensure that your home not only reflects your preferences but also enhances your daily life.

Financial Investment

While designing and building a custom house may seem cost-intensive initially, it can actually be comparible as an investment to buying a house on the market, and should be a sound financial investment in the long run. When you buy an existing house, there may be hidden maintenance issues or outdated systems that could lead to unexpected expenses down the road. By starting fresh with a custom build, you have control over the quality of materials, appliances, and overall construction.

Additionally, a custom house offers better value retention. As your home is specifically tailored to your needs and preferences, it stands out from generic houses on the market. It will likely have a higher resale value due to its unique features, premium craftsmanship, and customized finishes.

Building for the Future

Designing and building a custom house allows you to future-proof your home. You can integrate sustainable and energy-efficient features, such as solar panels, high-quality insulation, and water-conserving fixtures. By prioritizing environmentally friendly choices during construction, you contribute to a greener future and potentially reduce your utility bills.

Custom houses also give you the opportunity to plan for the future. If you have a growing family or envision aging in place, you can incorporate adaptable features like wider doorways, no-step entrances, or a main-level bedroom suite. Building a home that caters to your long-term needs ensures comfort and convenience for years to come.

Conclusion

While buying a house offers immediate occupancy, designing and building a custom house provides an unparalleled opportunity to create your perfect sanctuary. From igniting your creativity and maximizing functionality to making a sound financial investment and building for the future, the benefits of a custom build are immeasurable.

If you're ready to embark on an exciting journey of self-expression and create a home that truly reflects who you are, the decision is clear. Consider the advantages of designing and building a custom house – a tailor-made abode that you can proudly call your own.

Design Process: Additional Services

We have outlined the general phases of the design process in earlier posts. However, there often are other services that we offer to make your project easier to achieve. None of these are required to get an ADU designed, permitted, and built, but some can make your project a greater success or take some work off your plate so you can focus on other things. Additional services for ADUs or Custom Homes allow us to customize the service offerings to the unique needs of each client and each project.

Property Search and analysis (Feasibility Study)

You are looking into buying a new home and want to know what the potential is to add an ADU as a rental unit. Or perhaps you want to analyze your current property to better understand the opportunities and challenges for adding an accessory dwelling unit or other property improvement project - like a major addition, remodel, or even a new custom home design. It is also a great idea to do a feasibility study when considering purchasing of a piece of land. If you are considering any of these options a feasibility study is highly recommended as the first step. Whether you hire us or engage another design team, it is worth investing in this preliminary research before you commit to a larger project or before you close on a property purchase. Zoning research, site analysis, property review, and other research is can save significant money or prevent you from beginning a project before knowing exactly what is allowed. Whether you are considering an ADU, a major remodel, or a custom home design, this is a valuable service that is worth the upfront investment.

Interior Design

Some clients love shopping for materials, finishes, appliances, and picking out colors and other interior elements for their homes and ADUs. Others don’t have the time and want someone to assist with this process. Since most interior finish selections don’t affect the permitting process this service isn’t necessary to get a custom home or ADU approved to build, but it can make a big difference for the look and feel of your project. An interior design that matches the aesthetics of the exterior and creates a welcoming environment can make or break your project. And interior design is especially important if you are planning to rent out the ADU as a long or short term rental. You want durable materials and finishes as well as a noteworthy, photogenic design that will set your rental apart from the competition. This service can include selecting all of the finishes like tile, counters, cabinets, fixtures, and hardware or can include additional tasks like helping select furniture, artwork, and other decorations to bring the space together and feel warm and inviting. Custom home and ADU Interior Design can take a great deal of time and effort but can have a great return on investment. This is why we recommend that our clients hire a professional designer to assist with this work. Typically we like to work with you to at least select all of the materials, finishes, and fixtures that will be attached to the structure which is why we offer interior design as an additional service for our ADU and custom residential clients.

Existing Conditions Drawings (As-Builts)

Most of the projects we work on are detached new construction ADUs or custom residences. However, when an ADU interacts with an existing structure on your property it is necessary to document the existing conditions. Often these are called as-built drawings, and include creating dimensioned drawings of all the existing spaces and structures that will be affected by the project. Most designers will offer this service or sub-contract it out to another drafting company. It is worth the investment to get an accurate drawing set that shows the current conditions of your home before you start any project.

Renderings

Three dimensional views of the project are another part of the design process that isn’t necessary for the permit approval process but can be a great tool to make design decisions. Taking these views a step further, you can use modeling and drawing software to create rendered views that show materials, finishes, lighting, furniture, people and other effects to really show what the spaces will look and feel like. We often do a couple exterior and a couple interior renderings so our clients can see an approximation of what their project will look like after it is finished. This allows them to have the confidence they will like the final design prior to starting construction. Good renderings do take time and thus cost money, but we always find it is worth spending a bit of extra effort during the design phase to prevent changes or worse, regrets, once construction begins. A couple thousand dollars during design can save tens of thousands during construction. If you are unsure about what your project will look like or how the interior spaces will feel by looking only at plans, sections, and elevations, ask your design team to make some renderings. It is an added service but can give you a better sense of the final project plus are great to share with friends and family so they can see what you are planning!

Physical Models

These are pretty rare these days as most firms have moved to digital drafting and 3D visualization software. However, some clients think better when seeing a physical model of their new home or ADU. We have built a few models for clients and they can be a valuable tool to help make design decisions. They can be time consuming if you are looking for a lot of detail. Simple massing models, or chipboard diagrammatic models can be quick and cheap, but detailed wood models can be very time consuming and could add significant cost to the design process. Still, like with the renderings, it is still cheaper to invest in the design process than try to make changes once construction begins. It is better to be sure about the design direction and sometimes physical models are the best way to think through a design challenge or capitalize on an opportunity.

Meetings and Presentations: Design Review, Community Engagement, Neighborhood Associations, Historic Review, and other meetings or presentations.

Certification Process & Applications: LEED, Earth Advantage, Passive House, Net Zero, or other certifications.


Design Your Dream Home: Interview With Lucas Gray

Doug and Steve chat with Lucas Gray in this episode of Design Your Dream Home!

Lucas brings passion for design excellence and years of international work experience designing projects in Asia, Europe, Africa, Australia and North America. His innovative, competition winning design ideas blend sustainable building strategies and timeless architectural forms with a particular focus on materiality. He brings expertise working with diverse communities throughout the world, offering his services to community groups and nonprofits to create positive change through architecture.

Lucas' residential work focuses on sustainable modern custom homes, accessory dwelling units (ADUs), vacation houses, cabins, cottage clusters, infill developments, and missing middle housing.

Healthy Indoor Environments for ADUs and Custom Homes

There is so much more to developing a design for an ADU or Custom Home than just making a beautiful building. Our approach balances aesthetics, sustainability, high performance, and maybe most importantly, healthy indoor environments.

Great design creates healthy environments.

According to the EPA, “Americans, on average, spend approximately 90 percent of their time indoors, where the concentrations of some pollutants are often 2 to 5 times higher than typical outdoor concentrations.” Armed with this data, we look for ways to make our buildings healthy places to live to avoid polluted environments that can negatively impact your health. The most beautifully designed home is a not a success if it isn’t also sustainable and a healthy place to live. A great home needs to do all of the above.

Indoor Air Quality

Indoor air quality is one of the many considerations that guide decisions during our design process for both custom homes and custom designed ADU projects. From creating spaces that have natural ventilation and can open up to the outdoors, to selecting materials that minimize toxins and off-gassing, we help guide our clients through the decision making process that leads to a healthy home. This includes selecting natural materials (like plaster instead of gypsum board), low VOC (volatile organic compounds) paints and adhesives, and heating and cooling systems that filter out contributors to indoor air pollution. A home shouldn’t contribute to conditions such as asthma, allergens, or other irritants, and the design process can help avoid these conditions.

Open to the outdoors

Before we look to mechanical systems like air filters on an HVAC system, we look for opportunities to create passive ventilation in our homes. This includes operable windows in the areas people spend most of their time - bedrooms, living rooms, kitchen and dining areas - and other ways to make use of natural ventilation for airflow, like natural convection to create airflow. The orientation of the building, sun shading, and other passive strategies can also limit the use of active systems that can move dust and toxins throughout a home’s interior.

A common design element we use in a lot of our projects are large sliding doors that completely open up spaces to the surrounding landscape. Living in connection to nature can help make our indoor spaces healthier and more enjoyable - bringing in fresh air, natural light, as well as views into the beauty of nature.

Don’t compromise on health

When creating a home for a family we don’t believe in compromising between a high performance healthy home and great design. A healthy indoor environment is part of our thinking from the start of each design. It as integral to our process as developing efficient floor plans, beautiful aesthetics, selecting high quality materials, and integrating sustainable strategies. It is only when all of these things come together that a project meets the needs of our clients and becomes a great place to live. By adding an ADU you are taking a great first step into building a sustainable home.

A custom home in an urban area wraps around a central courtyard so all rooms have access to natural light, natural ventilation, and have views to the outdoors. Natural materials, low VOC paints and adhesives, and high quality air filters on the HVAC system round out the strategy to create a healthy indoor environment.

A custom home in an urban area wraps around a central courtyard so all rooms have access to natural light, natural ventilation, and have views to the outdoors. Natural materials, low VOC paints and adhesives, and high quality air filters on the HVAC system round out the strategy to create a healthy indoor environment.

Frequently Asked Questions about Designing and Building Custom Homes

How does the design process work?

We have a set design process that we lead you through in order to deliver the best results. We break down each project into 5 phases so there is a clear and predictable path that each project moves along. We have outlined this process in detail in another post. Click the button below to learn more.

How long does it take to design a Custom Home?

This can vary greatly from project to project depending on the specifics of the property, the size of the home, and the clients. If you can make decisions relatively quickly we can design a home in 6-9 months. If you want to take your time and deliberate longer on decisions than a 1-year design timeline is a good rough estimate. Keep in mind, this is for the design work. The permitting review and construction process would be added on to these estimate. For a rough order of magnitude you can anticipate 1.5 to 2 years total from start to finish. As we mentioned in our Value statement, we want to serve the best interest of our clients and that takes time. Like the growth of the slow food movement as a pushback against unhealthy fast food, we believe quality is vital and working diligently through our process leads to the best results. And the best results take time.

How much does it cost to build a custom home?

We expanded on this in more detail here. However, as a quick estimate you can assume a custom home would start at around $1 million and go up depending on the size, the site, the quality of materials, systems, and other elements in the project. Your overall budget is really about your goals and ideas and how much you want and are able to spend on the project. We have design small homes, ADUs, that were around $300,000 and we have designed full custom homes for $1,000,000. Larger, higher-end, homes are easily $2 million or more. It really depends on what you are specifically looking for. We start our design process by interviewing you to better understand your wants, needs, goals, ideas, and lifestyle so we can deliver a project that is unique to the specifics of your life and property.

What is included in the design fee?

When any client first contacts us we listen to their goal and ideas, we then ask questions to get an intimate understanding of what they want and need, and what their lifestyle is so we can best craft a solution. Based on this analysis of the uniqueness of your project, we develop a proposal that is specific to your project and the value we can provide as designers and advisors. We also offer tiers of services that you can select to best serve your needs, expectations, and budget. This is a long way of saying, “it depends.”

Generally speaking, our design fees cover Predesign, Schematic Design, Construction Documents, Permitting, and Construction Administration. These are the five phases we guide each project through from our first meeting to handing you the keys to a beautiful custom home. You can learn more about what each of the phases covers by reading the Design Process post linked above.

What other expenses should I expect?

Outside of the design fees there are a handful of expenses that you need to consider. First is the construction cost, of course. This would be the cost of materials and labor paid to the General Contractor. There will also be a handful of consultants needed to complete your project. This includes a surveyor, structural engineer, perhaps a Civil Engineer and Geotechnical engineer (these depend on the property and full scope of design work), arborists, and landscape designers. There may also need to be energy consultants or other special consultants depending on the local requirements.

Other than construction costs and consultant fees, the other major expense will be the Permitting fees assessed by your local jurisdiction. Each city and town is different and has different fee structures so we will conduct that research and report on estimated permitting costs during our Pre-design phase.

How will I know that I will like the end result?

Design is an iterative process and involves sharing ideas, discussing your style, taste, preferences, needs, and wants. It is our job to listen to you, learn about your lifestyle, and understand what you are looking for and then transform that into a design of your custom home. Throughout the design process you will sit down with us as we present design ideas, floor plan layouts, and other drawings to describe the look and feel of your home. Together we will talk through pros and cons of different options and actually sketch ideas as we refine the design into a beautiful home that reflects your values. This iterative process has led to successful designs that our clients love as well as designs that have been recognized and won awards from the design community.

It is also recommended that you look through our portfolio, follow our instagram account, and make sure that our style and values are aligned with what you are looking for. We tend to design modern or contemporary styled projects that are connected to nature and influenced by the landscape around them. If you are looking for a craftsman style suburban home we probably aren’t the right designer for you. However, if you like the work you see on our website, I’m confident that we can design a beautiful project that you love and are proud to call home.

What drawings are included in your services?

There are two main drawing sets that are created during our design process. There is the Schematic Design set and the Construction Documents set. Each has their own specific drawings that are included. For the SD set we include a site plan, floor plans, elevations, sections, and 3D views to describe the design intent. However, to arrive at the final drawing package we do a lot of drawings as we present options and work through the iterative design process. There are a series of plans, elevations, 3D views and hand sketches that we create and use to talk through design ideas along the way.

The Construction Documents Set includes all of the drawings that are needed to both receive a permit from the local building department as well as the information needed for a General Contractor to bid and then build the project. This includes but is not limited to: general notes, a detailed site plan, dimensioned floor plans, building elevations, building sections, foundation plans, reflected ceiling plans, enlarged floor plans, interior elevations, assemblies, schedules, construction details, finishes, fixtures, and equipment lists, and structural engineering and other drawings provided by the consultant team.

Who manages the permitting process?

It is part of our standard scope of work to oversee the permitting of our projects. This includes compiling the permit drawings, filling out permit applications, and submitting all of this to the local building department. We then follow up to respond to any review questions or requests for additional information. There may be a few forms you are required to sign as the project owner, but otherwise we manage the process on your behalf.

Do you have experience working in my local area?

I have worked across the country and around the world and have had success on projects regardless of location. I worked remotely on a project in northern Alberta and I worked with communities as far away as rural Japan. I lived and worked in Thailand, China, and Germany. In earlier years I worked on the design of train stations in Russia, renovations in Berlin, and ADUs in Seattle and the Bay Area. I’ve lived and worked in Portland, Oregon and designed over 100 projects across Oregon. My home base is currently Brooklyn, NY but I travel frequently for work and pleasure. The point is, I may have some experience in your area but I also know how to work in different locations. Regardless of the location of the project, I do the research needed to understand the local rules and regulations, the local permitting process. I collaborate with local contractors and craftspeople, and of course I visit the site to understand the unique aspects of your property and the surrounding landscape.

Do you stay involved during construction?

Absolutely. It is vital to have your designer follow the project through to completion. There are always some adjustments when translating drawings into a built home and we are there to help answer questions, make suggestions, and observe that the construction is following the design intent. I will be an advocate for you during the construction process to get a high-quality home that aligns with the values and design ideas we worked on throughout our design process. A designer stepping away during construction is irresponsible and doesn’t have their client’s best interest at heart. Construction Administration is an important part of our standard services for all residential projects.

Do you have builders/General Contractors you can recommend?

Recommending contractors is part of our services. Working with trustworthy, high-quality contractors and craftspeople is key to the success of a project. In places where we have already completed projects we can recommend people we had great working relationships with. In new locations we do an extensive search to find qualified contractors to collaborate with. This means reviewing contractor websites, talking to local designers, architects, and engineers to get recommendations. We reach out to the companies that have a good reputation and interview them and ask for references to follow up with. Ultimate we typically recommend about 3 companies for each project and have you meet with them. It is important that you meet and get a good feeling for the contractor as they will be a big part of the success of your project. We want to make sure you have a good feeling about them and they are both excellent communicators and have the experience needed to build a finely crafted home.

Can we make changes to the design during construction?

Changes during construction are not recommended. Change orders are often what causes budgets to get out of control. It is always much more expensive to make changes during construction than working out design options on paper. It is also important to consider that there are many factors that influenced what was design. Changes during construction can affect structural systems or may not meet codes that were considered during the initial design. Even when contractors make suggestions for changes in order to save money, we find that often it ads as much expenses and what they think they will save. Major changes require additional drawings and details to document what is changing and need to be reviewed by the jurisdiction as a permit revision. And even small changes can cause delays and additional costs. For these reasons we highly recommend that once construction begins we all stick to the original design.

Custom Homes: How Much Do They Cost?

If you are considering designing and building a custom home there are three steps you need to take as you embark on this journey. You have to find land, find a designer and builder, and set a project budget. When people reach out to us about their projects, cost considerations are typically the first question they ask. They may already have land picked out, or are looking for our help as they consider different properties. What they are most stressed about is seeing if they can afford a project that meets their goals and ideas. Budget is top of mind and usually a big part of our early conversations. Here we will discuss the various aspects of a project budget and some numbers of recent projects so you can have a jumping off point as you consider your project.

When I read articles like this, I always get frustrated trying to find the answer to the first question. How much will it cost? Rather than make you scroll all the way to the bottom (although you should definitely read through everything) let’s get right to the chase. The answer is $1,260,000 plus the cost of land.

Of course that isn’t exactly accurate. It is impossible to give you an exact number without knowing more about the specifics of your project, but it it isn’t that far fetched. I would say that most nicely designed custom homes will start at around $1 million and go up from there. It may be possible to build something very nice for under that amount, especially if you are looking for a smaller project like a weekend getaway cabin, or some other modest project. But for most full sized houses, say 1,500 square feet and up, I would venture to guess that the final cost will start at around $1 million when all factors are considered. Keep reading for a more detailed breakdown of how these costs add up.

There are three main expenses you will need to plan for with a custom home. The first is the cost of the land. Second is the soft costs - all the fees that are needed to develop the design and get permission to build the project. Third are the hard costs - the expenses of actually building the project.

Land Costs

Unfortunately you are going to hear this a lot, but this cost is widely variable. Depending on the location, the local market, the type of land, the quality of the property, surrounding property values, views, water features, and other qualities, the price can fluctuate. For example, I’ve been looking at land in the Hudson Valley and Catskills regions of New York State and have seen land that cost $2,000/acre and others that have been over $100,000/acre. The main factors were views, if the property was on a river or lake, and the location - closer to New York City or the trendy towns in the Hudson Valley drove up the cost significantly. I am hoping to narrow in on some properties in the range of $10,000 per acre and want a minimum of 10 acres of land. So my land budget is about $100,000 to $150,000.

On the other hand, I have also been helping a client search for land in the High Desert of Oregon (a couple hours drive from Portland) and we are eyeing a property that is 60 acres for $199,000, or around $3,300/acre.

Soft Costs

When just throwing around rough numbers as you start thinking through the project budget, we recommend you allocate 20% of the project budget to soft costs with the remaining 80% going to the hard costs. This is a general rule of thumb and a good guideline to use before you start getting actual numbers to plug into your calculations. This 20% would cover design fees, engineering costs, permitting fees, insurance, financing costs, site survey, and other required expenses before ground is broken to start construction. Let’s break this down a bit further.

Design Fees
You can budget about 10-15% of the project budget for design fees. Some designers might be a bit cheaper but also may not offer the same level of service. Designing a custom home is a significant investment and you want a design team that is going to give it the time and dedication it needs to do it right and create a high-quality result. Compared to the cost of construction, design fees are still a small percentage of the overall project and not somewhere you want to cut costs. Design fees vary depending on the firm, their reputation, the budget of the project, what scope of work is included in the fee, and the local market, among other factors. In NYC we have seen 12% as a very common design fee percentage, where famous starchitect firms may be 15% or some could even be as high as 20-25%. I offer a few different tiers of design fees depending on the scope of work, 10%, 12%, or 15%.

For argument’s sake, let’s say you are looking to spend $1,000,000 on the construction of your home. You can thus budget between $100,000 to $150,000 for design fees.

Engineering/Consultant Fees
A few different engineers are needed for most residential projects: civil engineering, geotechnical (soils) engineering, and structural engineering. Occasionally we may also engage a Mechanical, Electrical, Plumbing engineer if it is a complex project, although typically we approach these systems as a design-build where the contractor who installs the system also does the design and permitting work. You can budget about 1% of the construction cost for each engineer as a placeholder before we get actual bids from companies. Fees could vary if it is a complicated site; steep topography for instance. A site survey is also required and could add another $5,000 or so in fees depending on the site. Other consultants may also be necessary like arborists, landscape designers, energy consultants, and others depending on the specifics of your project and your property.

For that same theoretical $1,000,000 project you are looking at around $35,000 to $50,000 in consultant fees.

Permitting Fees
Each jurisdiction has their own permitting process and associated fees. Typically there is a permit review fee for the actual time and effort for the building department to review the drawing set and issue an approved permit. On top of that, most cities and towns also asses system development charges for new construction. These are fees that cover town expenses for infrastructure and services like roads, schools, utilities (water and sewer systems), parks, and other amenities.

On a custom home we completed in Portland that was valued at $750,000 in new construction, the total city fees came in around $47,000.00. That includes about $16,500 in permit fees and $30,500 in System Development Charges (SDCs). That is a lot of money! Not every jurisdiction will be this expensive to get a permit. Call the town where you are planning to build and talk to someone in their building department. Alternatively, many places have permit fee calculators on their building department websites.

Let’s use $50,000 to be conservative.

Insurance
It is recommended that you carry insurance during the construction process. This would cover things like unexpected events: think fire, weather, vandalism, or theft. The goal is to have security that if there is an issue during construction your insurance would cover losses or increased expenses to prevent the bank from foreclosing on the project. Policies vary depending on deductible and coverage amount. Annual premiums can range between 1% and 4% of the project cost but call an insurance company to get specific quotes.

Say 1% for now, for $10,000.

Financing Costs
This would be the cost of securing a construction loan, plus the interest you will pay throughout the project’s construction. Most construction loans work like a line of credit, so you make monthly draws to pay for the General Contractor’s labor and materials. You then start accruing interest on that balance until the project is complete and you then refinance into a more traditional mortgage (at a lower interest rate and a longer loan term). Closing costs on the loan could be around 1% of the loan amount, and interest can add up quickly - probably around 5% of the loan amount over the course of year, although the actual amount will depend on the interest rate and length of construction.

Say $50,000 for the loan fees and 12 months of interest accrual.

Altogether we are right around $260,000 in expenses (using 10% for design fees) on top of the estimated construction cost of $1,000,000. That is almost exactly 20% of the project cost ($260,000/$1,260,000).

Hard Cost

Before construction has even begun you have already spent about 20% of your project budget, more if you include the cost of land. We understand it is stressful being this far into the project without even seeing progress on the site. This is why everyone is so excited when that permit approval arrives and construction can begin.

At this point the cost of your project shifts from the design team to the General Contractor. The GC will take over leading the project and will typically invoice monthly based on the construction progress and the month’s labor and material costs accrued. This monthly invoice will be approved and then sent to the bank to issue payment from your construction loan.

Let’s discuss how we can estimate the cost of construction. First, I’d like to state for the record that I dislike cost per square foot calculations. All square footage isn’t considered equal, so we shouldn’t assign the same cost evenly across the project. Kitchens and bathrooms are expensive with all of the electrical work, plumbing work, casework, cabinets, counters, tile, etc. On the other hand, bedrooms, typically just empty rooms, are cheap square footage. So adding a second kitchen is much more expensive on a cost per square foot basis than adding an extra bedroom. This all being said, sometimes cost per square foot is the easiest way to make quick calculations. Let’s walk through some calcs.

Typical construction costs for a nice custom home start at around $350 per square foot and go up from there. For example, a new construction 2,500 square foot home would have a rough construction budget of $875,000 (2500 x $350). However, if you are looking for something more towards the luxury side, you could start seeing cost per square foot approach $500/sf or even higher. There are hundreds of decisions we will make together throughout the design phase that will affect this cost. In our $1 million dollar house example mentioned in the soft costs section, we would be looking at about $400/sf.

Why do I hate cost per square foot so much? Let’s say you want a smaller house - more of a weekend getaway in the mountains rather than a larger home for full-time living. In that case maybe you only need a nicely designed 1,200sf home. Using the cost per square foot calculation you will get a construction cost of $420,000. Sounds great. However, that is misleading. The expensive parts of the home (kitchens and bathrooms, excavation, and utilities, etc. ) aren’t being subsidized by as much cheap square footage (bedrooms, dining room, etc.). You should expect the cost per square foot for smaller projects to be higher than larger homes. For some of the Accessory Dwelling Units (ADUs) we have designed, cost per square foot often came in at around $500/sf or more, and we even saw a couple come in closer to $800/sf (one was on a steeply sloped site with complicated foundations and structural requirements).

For nice round numbers, from my experience I would say a high-quality ADU would start at $250,000 in construction cost or $300,000 in full project costs and up. A small vacation home would start at around $500,000 in construction cost or $600,000 in full project cost and up. Meanwhile, a full custom home would start at around $1,000,000 in construction cost and $1,200,000 in full project cost and go up from there.

Other considerations for Construction Cost:

Clients have immense control over the final cost of their projects. We guide you through the hundreds of decisions to be made but at the end of the day you are the one who has the final say on what you are willing to spend, and make the decisions that affect the cost. For example, you can get tile for the bathroom that cost $3/sf or tile that costs $30/sf. Kitchen appliances could be a few thousand or $30,000. Windows and doors can be cheap vinyl or luxury triple-pane, high-efficient, European tilt-turn windows for hundreds of thousands. Roofing, siding, flooring, structure, heating/cooling systems, hardware, lighting fixtures, and dozens of other decisions will have large impacts on the final cost.

Of course the property you pick at the beginning will also impact the construction cost. Steep slopes could necessitate more expensive structure, retaining walls, and other site expenses. Granite bedrock close to the surface can make excavation extremely expensive, especially if you are considering a basement. Having to clear trees, or level a flat part of the site can add costs. If the building site is far back from the street you could have to build a long driveway and pay to get utilities back to the house location. If the property is rural and necessitates a septic system or water well, rather than tying into the city utilities, that could add significant cost. These are all reasons it is important to do due diligence and maybe even hire the design team prior to putting in an offer on a piece of land.

Conclusion

There is a lot to think about. Budgeting needs to be well thought out and will be affected by lots of outside forces and personal decisions. These numbers are just rough guidelines to get you started as you consider your options. Most importantly, we are happy to talk with you about your goals and ideas and offer any advice or insight based on the specifics of your project. Don’t hesitate to reach out with any questions. We can also help you crunch some early numbers and even help you find land if you want some help looking for the right property for your dream home. Let us know how we can help.

The Hill House is a schematic design we developed for a client in southern Washington State. The estimated construction cost was around $500/sf for a total cost of around $2,000,000. Excavating on a sloped site to get a basement garage, concrete and…

The Hill House is a schematic design we developed for a client in southern Washington State. The estimated construction cost was around $500/sf for a total cost of around $2,000,000. Excavating on a sloped site to get a basement garage, concrete and steel construction system, and the floor to ceiling window package were significant drivers of this cost.

 
The Sheltered Nook House was a very cost effective project coming in at around $350/sf for the house itself. At 2,200 sf the cost was around $780,000 for the house structure. On top of that was the cost of the land, cost of installing a well and sep…

The Sheltered Nook House was a very cost effective project coming in at around $350/sf for the house itself. At 2,200 sf the cost was around $780,000 for the house structure. On top of that was the cost of the land, cost of installing a well and septic system, some site grading, some excavation and retaining walls. The total project was closer to $1,000,000 when considering those other costs.

 
This Accessory Dwelling unit is just 700sf and ended up at around $400/sf. Smaller projects have a much higher cost per square foot since they have all the expensive parts of a full house but without the cheap space (extra bedrooms, living and dinin…

This Accessory Dwelling unit is just 700sf and ended up at around $400/sf. Smaller projects have a much higher cost per square foot since they have all the expensive parts of a full house but without the cheap space (extra bedrooms, living and dining rooms, etc.).

This project is around 1,200sf with a project cost of about $360,000 for a cost per square foot of around $300/sf. This is one of the more affordable projects we have done with the goal of balancing nicely designed spaces with affordable materials. …

This project is around 1,200sf with a project cost of about $360,000 for a cost per square foot of around $300/sf. This is one of the more affordable projects we have done with the goal of balancing nicely designed spaces with affordable materials. Fiberglass windows and doors, hardie-siding, asphalt shingle roof, Ikea kitchen, and affordable tiles and floor materials kept the cost down. Plus the 1,200sf includes the garage area which is a simple empty room with concrete floor and drywall walls.

 

Design Inspiration: 4 Historically Significant Custom Homes

These projects are pillars of residential design in America - projects that are studied in architecture school and still resonate with custom home designers today. Innovative at the time, they have stood the test of time and still reflect a lot of the values people look for in their homes today. Each has a relationship to the land, takes advantage of views, and are experimental with materials and structure.

 

Stahl House (Case Study House No. 22) - Pierre Koenig

Where the homes I feature below are more about a connection to nature and landscape, this incredible house is all about the city. That view demanded that the architecture be open, transparent, and light on its feet. The modern aesthetic and steel structure are perfect responses to this context, giving the home a lightness that appears to float out over the city lights below. That view will never get old and the architecture is perfectly crafted to respect the drama of the site and recede into the background.

Book: The Stahl House: Case Study House #22: The Making of a Modernist Icon

 

Fallingwater - Frank Lloyd Wright

I was lucky enough to visit this house back in 2006 while driving cross country to attend graduate school where I earned my Master’s of Architecture degree from the University of Oregon. I snapped the photos below on an old digital camera so please excuse the resolution and focus. I’m not sure there is a more recognized house in the world, or one that sits in a more incredible setting. Despite seeing hundreds of photos over the years, visiting Fallingwater in person was a transcendent experience. Feeling the spaces, experiencing how the home is woven into the landscape, seeing how the interior flows outdoors, demonstrates just how spectacular this design really is. These images don’t do it justice. Go visit this house in person. It will exceed your expectations.

Book: Fallingwater

 

Farnsworth House - Mies Van Der Rohe

A house distilled down to the bare minimum, this design elegantly sits in the landscape while the interior is wrapped with views out over the surroundings. WIth the simple structure, slight elevation from the land, and an ultra simple form, the architect used minimalist design to compliment the beauty of nature. The interior is all about the 360 degree views out with the floor to ceiling glass walls the wrap the entire home. The spaces within are divided by the service core, meaning there are practically no walls that impeded the views of the outdoors. This may be one of the most influential houses in American architecture and reflects many of the values that I strive for in my work: touch the ground lightly, emphasize the indoor-outdoor connections, keep the form simple, use a minimal material palette.

Book: Broken Glass: Mies van der Rohe, Edith Farnsworth, and the Fight Over a Modernist Masterpiece

 

Eames House (Case Study House No. 8) - Charles and Ray Eames

The proportions, materials, prefab elements, and color composition of the exterior is what you first notice about this house. Yet more importantly is how the house sits on the site. Nestled into the hillside the house is protected on one side, while the double height facade on the other, opens up to a meadow and a grove of eucalyptus trees on the other. It is this relation to the land that makes this house what it is. Too often modern architecture is thought of imposing it’s rigid form on the surroundings. Yet the truly great homes strike a balance between their form and structure and responding to the specifics of their site. It is this sensitivity, that Charles and Ray Eames displayed in this project, that I’m inspired by.

Book: The World of Charles and Ray Eames

 

These are some of the most famous houses in America, inspiring countless architects and designers over the decades. They celebrated new materials and construction technology. Their style was a stark departure from the more ornamental aesthetics of earlier home design. Yet, what makes me fall in love with them is how they each celebrate the natural surroundings despite their distinctly industrial material palette and structural systems. This juxtaposition both celebrates how they were built while still paying deep respect to the landscape. This combination, designing for the specific strengths of each material while crafting a response to the specifics of the land, is what I love about residential design. Working with clients that share these values, exploring each site, and working through design iterations to reveal the ideal solution is what makes design so much fun.

 

What You Need To Know Before Building A Custom Home

Building a custom home can be an exciting and rewarding experience, but it's important to be well-prepared before starting the process. These projects can be more complicated and stressful then they appear so it is also advised to hire an experienced design team to help guide you through the process. Here are a few things you should know before building a custom home:

  1. Set a custom home budget.

    Building a custom home is a significant expense, so it's important to set a budget that you are comfortable investing in the project. More importantly, it is important to be transparent and share your accurate budget numbers with your designer and general contractor. Transparency and trust will make the project more successful, so be open with discussing what you are comfortable spending with your design team. As you are calculating your custom home budget, be sure to factor in all of the costs associated with building a home, including the cost of land, materials, labor, permit fees, design fees, and any additional features or amenities that you want to include. You should also be prepared for unexpected costs that may arise during the construction process, so building in a contingency amount is recommended.

  2. Choose the right location for your custom home.

    The location of your custom home will be a key factor in its value and appeal. Consider factors such as proximity to schools, public transportation, and amenities like shopping and dining. You should also consider the long-term prospects for the area, including the potential for future development or growth. You want your investment to pay off, and in general, real estate tends to appreciate in value over time. Location can also impact other aspects of your project like, availability of material and labor, cost of mobilizing a construction site, complications with foundations and structure. Engage your design team to talk through to the pros and cons of your property and the ideal location to place your project on the site.

  3. Work with a reputable and experienced residential builder.

    Building a custom home is a significant investment, so it's important to choose a reputable builder with a proven track record of delivering high-quality homes on time and on budget. Research and compare builders in your area, and make sure to get references and check their credentials before making a decision. We also advise picking the builder based on reputations, skill, and alignment of values. Don’t select a contractor based on price as often the cheapest builders will end up cutting corners. Pick a contractor and then work with them and your design team to develop a design that meets your budget.

  4. Choose the right design team with custom home experience.

    A good design team can help you turn your dream home into a reality. Look for a team that has experience in custom home design and a track record of creating functional and visually appealing homes that align with your taste and values. You should also consider your personal style and preferences when choosing a design team, as they will be working closely with you to bring your vision to life. A great designer is worth the investment and a well designed home will be worth more in the long run. This isn’t a place to cut corners or tighten your purse strings. Investing more in the design phases can save you thousands of dollars in construction, and can lead to a home that is much more enjoyable for you and your family and much more valuable as an investment.

  5. Plan for the future with your custom home design.

    While it's important to focus on the present when building a custom home, it's also a good idea to consider the future. Consider factors such as the potential for future family growth or changes in your lifestyle, and design your home with these changes in mind. This can help ensure that your custom home will meet your needs for years to come.

Overall, building a custom home is a significant investment that requires careful planning and preparation. It is recommended that you assemble a talented team to help you achieve your goals. A talented designer, trustworthy builder, a great location, a carefully crafted budget, and a long term plan can take the stress out of the process and help ensure your new home project is a resounding success.


Interested in starting a custom home project with us? Tell us about your goals and ideas using the form below: