How Much Does a New House Cost in 2024: Complete Guide

Buying or building a new house is a dream for many, but how much does it really cost in 2024? With fluctuations in the real estate market and variations in construction costs, it's essential to plan your project carefully. In this article, we provide detailed information on the costs to expect, the factors influencing the price, and tips to optimize your budget, especially considering market trends.

We obviously can't tell you exactly how much your project will cost down to the last dollar, but you'll get a very good idea with this article.

Why Choose a New House?

Opting for a new house offers numerous advantages:

• Modern and High-Performance Materials: New constructions use innovative materials, offering better thermal and acoustic insulation, which reduces long-term energy costs.
• Compliance with Current Standards: New houses are typically built according to the latest safety, environmental, and energy efficiency standards. Of course, it's super important to inform yourself about the expertise and reputation of your contractor.
• Customization: You have the possibility to design a house that perfectly matches your needs and tastes (even the craziest ones). Want a house shaped like a hexagon? A new house is the best option.
• Low Maintenance: Since installations are new, you avoid major renovation costs for several years. Again, choosing the right builder is important.

How Much Does a New House Cost in 2024?

The cost of building a new house depends on several factors such as size, type of construction, chosen materials, location, and finishes.

Here's a general estimate of the costs to expect:

1. The Land

• Cost: Generally represents 25% to 33% of the total budget.
• Example: A plot costing $150,000 for a total budget of $450,000.
• Additional Fees:
• Surveying: $1,000 to $2,000.
• Soil and Water Quality Tests: $800 to $2,500.
• Notary Fees and Transfer Taxes: Vary depending on the region and the value of the land.

2. Construction Costs

The construction cost is often calculated per square foot and varies according to the chosen range:

• Calculation: For a 2,000 sq. ft. house in the mid-range:
• 2,000 sq. ft. x $275 = $550,000
• 2,000 sq. ft. x $300 = $600,000

3. Additional Costs

1. Basement and Garage

• Finished Basement: $35,000 to $60,000 depending on size and amenities.
• Garage:
• Single: $40,000 to $50,000
• Double: $60,000 to $75,000

1. Exterior Landscaping

• Landscaping and Gardening: Approximately 10% of the property's value.
• Driveways and Entrances: $5,000 to $15,000.

1. Connections to Public Services

• Electricity, Water, Sewage: $2,000 to $10,000.
• Artesian Well (if not serviced by municipal water): $15,000 to $20,000.
• Septic Tank (if not serviced by municipal sewage): $10,000 to $30,000.

1. Professional Fees

• Architect: 5% to 15% of the construction cost.
• Technologist: $1,500 to $3,000 for standard plans.
• Structural Engineer: $1,000 to $3,000 if required.

1. Permits and Taxes

• Building Permit: $250 to $1,500 depending on the municipality.
• Notary Fees: $1,200 to $1,600.
• Welcome Tax: Calculated based on the property's value (approximately 0.5% to 1.5%).
• GST and QST: Applicable on materials and services, with the possibility of partial reimbursement for new homes.

4. Specific Installations

• Eco-Energy Systems:
• Solar Panels: $15,000 to $25,000.
• Geothermal System: $30,000 to $50,000.
• Home Automation and Smart Systems: $5,000 to $20,000 depending on features.

How to Optimize Your Budget When Building Your House

1. Plan for Contingencies

• Recommendation: Allocate 10% of the total budget for unforeseen expenses.
• Example: For a budget of $500,000, set aside an additional $50,000.
• Why: Contingencies can include delays due to weather conditions, sudden increases in material costs, or last-minute changes.

2. Choose Materials and Finishes Wisely

Exterior Cladding:

• Standard Vinyl (included in entry-level): Base cost.
• High-Quality Vinyl or Fiber Cement: Adds approximately $5 to $8 per square foot.
• Brick: Adds approximately $10 to $15 per square foot.
• Natural Stone: Adds approximately $20 to $30 per square foot.

Flooring:

• Laminate Flooring (included in entry-level): Base cost.
• Hardwood: Adds approximately $5 to $10 per square foot.
• Exotic Wood or Heated Floors: Adds approximately $10 to $15 per square foot.
• Marble or Luxury Materials: Adds approximately $15 to $25 per square foot.

Kitchen Countertops:

• Laminate (included in entry-level): Base cost.
• Quartz: Adds approximately $3,000 to $5,000 to the total cost.
• Granite: Adds approximately $4,000 to $6,000 to the total cost.
• High-End Marble: Adds approximately $6,000 to $10,000 to the total cost.

3. Compare Contractor Quotes

When you plan to build or renovate your house, it's essential to request at least three detailed quotes. This will allow you to compare prices and services offered, ensuring you get the best possible deal.

Next, it's crucial to check the references of the contractors you're considering. Make sure they are properly registered and have all the necessary insurance to carry out the work. This will protect you in case of any issues during the construction.

Finally, don't hesitate to negotiate. It's sometimes possible to get better prices or even additional services if you openly discuss options with the contractor. Good negotiation can not only reduce your costs but also improve the quality of service you receive.

4. Consider a Prefabricated House

Advantages:

• Lower Cost: Reduced labor and construction costs.
• Reduced Construction Time: Faster assembly on-site.
• Controlled Quality: Factory fabrication according to strict standards.

Considerations:

• Limited Customization: Less flexibility in design.
• Transportation: Costs associated with transporting modules to the site.

Estimated Cost:

• $150 to $200 per square foot, excluding land and foundations.

Comparative Table: Traditional Construction vs. Prefabricated House

Frequently Asked Questions

Is it profitable to build a house in 2024?

Yes, despite higher initial costs, building a new house in 2024 is profitable in the long term thanks to savings on maintenance, repairs, and reduced energy costs. Additionally, a new house can have a higher resale value.

How can I finance my construction project?

A self-build mortgage is an interesting option to finance your project. It allows you to cover the different stages of construction with progressive disbursements, adapting to the progress of the work.

It's also wise to inquire about available government grants and programs. These incentives can offer significant financial support, particularly for eco-friendly constructions or first-time buyers. These programs vary by province and can evolve over time.

Don't forget to also inform yourself about municipal financial assistance. Indeed, some municipalities offer specific programs to encourage residential construction in their area. These aids can take various forms, such as direct grants or temporary tax relief.

What costs are sometimes forgotten?

• Insurance during construction: Protection in case of damage or accidents on the site, applicable if it's a self-build.
• Internet and Telecommunications Connections: Installation fees can vary.
• Interior Fittings: Appliances, lighting fixtures, window treatments not included in the construction cost.

Tips for Successfully Completing Your Project

1. Plan Ahead: The more prepared you are, the fewer surprises you'll encounter.
2. Prioritize Your Needs: Identify essential elements and those on which you can be flexible.
3. Communicate Regularly with Your Contractor: To monitor the progress of the work.
4. Inform Yourself About Local Regulations: Some municipalities have specific construction requirements.

Conclusion

Building a new house in 2024 is an ambitious project that requires careful planning and good budget management. By considering detailed costs and making informed choices, you can realize the house of your dreams while staying within your budget.

Ready to make your project a reality? Explore our inventory of new properties. Together, let's bring your future home to life!