Custom Home Costs and Renovation Costs in Calgary
Updated 2020/11
For our first post, we thought we would tackle the question of custom home costs & renovation costs in the Calgary area. Go big or go home right?
General considerations when looking at the cost to build a new home, or the cost to renovate your home
After having countless conversations with potential customers regarding the cost of building a custom home or the cost of renovating in Calgary, we have decided it’s time to put something in writing to help the interested populous navigate this topic. So, what does it cost to build a custom home or what does it cost to renovate a home in the Calgary area? I’m glad you asked.
We are aware that there are many shady and shifty sales tactics going on in the residential construction industry, both for new homes and renovations. Because of this, it is important that the purchaser educate themselves on what to be on the lookout for. Of course prices fluctuate over time and are dependent on current market conditions, but the basics of what needs to be considered really doesn’t change.
We find it easiest to look at any project as two, intertwined parts. One of those parts being the general budget and the other being the construction budget. The entire project cost is of course an amalgamation of these two parts. To better quantify new custom home costs and home renovation costs, let us break down these two pieces of the pie.
General – New Home Budget / Home Renovation Budget
- Architectural / Design Fees (project dependent)
- Design Consultants (surveyors, geotechnical consultants, engineers, energy consultants) $2k-$10
- Permitting (all regulatory and approval fees for the project, including Development permits, Building Permits etc.) $2k-$7k
- Utilities (services such as water, sewer, gas, electric, wells, septic etc. are often required by the municipality, especially for infill homes and are at the cost of the customer) $20k-$30k
- Site Preparation (remediation, demolition, clearing etc.) $10k-$30k
- Hardscaping (drainage, grading, retaining, fencing etc.) site dependent
- Landscaping (loam, sod, plantings) site dependent
- Interior Decorating (window coverings, furniture, artwork etc.)
Construction – New Home Budget / Home Renovation Budget
- Construction Costs (all parts and labour required to construct the home – excavation, foundation/ flatwork, framing, roof, flashing & gutters, windows, doors & skylights, siding & exterior trim, decks, HVAC, plumbing, electrical, insulation, drywall, millwork, paint, tile, cabinets & closets & counters, flooring, bath hardware, mirrors, fireplace, handrails, decorative metal, appliances, specialty items like elevators, lifts etc.)
- General Conditions (site security & fencing, portable toilet, temporary utilities and heat, rentals, waste removal & recycling, specialty items & tools, final clean, miscellaneous)
- Special Conditions (site access, severe grades, slope stability, unusual soil conditions etc.)
- Builder`s Management Fee (15-25% of project – project dependent)
- Taxes
Total Project Budget (Typical)
Several factors influence the overall cost for a custom home or the cost for a renovation, including site conditions (building costs for infills are different than those in new developments), finish level and customer expectations. The numbers used assume a typical or median approach to a project.
Whole house renovation costs (down to the studs): $200/sqft ± $50/sqft
New construction costs $300/sqft ± $50/sqft
Integrating sustainability, high performance or energy efficiencies into a project don’t necessarily need to add to the cost. Some of these items are simply a different or better way of doing those things which are already done. For this reason the numbers presented here already include many high performance and energy efficient features. What would you do with that extra $250 per month you save on your energy bills?
While the current market conditions in Alberta are having an effect on construction prices, it is not as great as one might think. A strengthening US construction market is actually causing a rise in material costs which are already becoming more expensive thanks to a weakening Canadian dollar. The cost of living hasn’t lessened in Calgary, so our labour costs remain virtually unchanged. The silver lining in the market conditions is that subcontractors and suppliers are more responsive because they are less busy, and they are trimming the fat to keep prices down in an effort to stay busy.
This information is intended as a benchmark or starting point. If you have any questions or would like to discuss things further, don’t hesitate to contact us.
You can also find out more about our design build, design renovate process and how that helps to make your custom home costs or renovation costs more controlled and predictable.
