Building a custom home is a dream for many Canadians. However, with the cost of living on the rise, you may be wondering what it costs to build in today’s real estate climate. If you’ve already begun your search, you’d know that starting from scratch can be expensive. However, this is dependent on several factors. For instance, the cost of your land, the city/province you are located in, and who you hire as your contractor. To give you a better idea of what it costs to build a home in 2024, we’ve compiled all of the latest statistics to provide you with a comprehensive estimate of home construction in Kelowna. Follow along below to learn more!
An Overview of Home Building Costs in Canada and BC
In 2023, the Atlas Group released statistics about the latest Canadian real estate development and infrastructure construction costs. This report is ideal for gaining a benchmark understanding of how much it costs to build a home in Canada. The statistics within the guide are further split into cost-per-square-foot by major city. For example, in Calgary, it costs between $450 to $995 to build a custom single-family dwelling. On the other hand, Vancouver residents paid between $485 to $1225 for a custom single-family residence. It is important to note that these estimates only factor in the price for construction and are not inclusive of land costs, legal fees, taxes, insurance, etc.
Another source detailed the average cost to build in British Columbia during 2023 for homes that were 2100 square feet. In this list, Vancouver was the highest at $350-$450/square foot. Just below Vancouver was Kelowna, sitting at an average of $325-$425/square foot. It is important to remember that while these prices give a good baseline to estimate the cost of your build, there are so many factors that can drive up the price per square foot.
Let’s take a look at what some of these costs are so that you can narrow in on your benchmark price!
Major Costs of Home Construction Kelowna
- Cost of Your Lot in Kelowna
One of the greatest add-ons to the average cost of construction is the price of your land. British Columbia has several stunning places where you can buy property. However, acquiring a lot with a good view often comes at a high price, and this holds for properties in British Columbia. The cost of a suitable lot in Kelowna varies from $200,000 to several million dollars. In 2020, statistics showed that the average price per buildable square foot in downtown Kelowna was $39. This equates to almost $1.7 million per acre. If you want to find cheaper land, it is often the case that you will need to be further away from the city centre. Further to this, you’ll want to consider the slope and trees present on the lot. Steeper slopes and more trees mean additional costs to clear and grade the property. If you’ve hired a contractor, it’s wise to get them to take a look at your vacant property before you follow through with your purchase. Your builder can help point out any red flags that will add to your construction budget.
- House Plans, Permits, and Fees Costs in Kelowna
In addition to the cost and development of your lot will be the litany of fees required for permits, plans, and other development costs. Utility connections, for power, water, and waste will be required to get services connected to your lot. The largest expense will come in the form of paying your architect or draftsperson for the plans to build your home. In most cases, you will need to have at least $10k set aside for proper plans and drawings for your builder. Plans need to be submitted to the building department at the city for approval before they will issue a permit to legally build your home. Your permit will also be subject to a fee from the city. The cost of this fee will vary depending on the size and scope of your project.
- Paying Your Contractor
Besides the land, another major cost associated with building is your contractor. While it is not necessary to hire the help of a contractor for every job, most people go this route. This is because hiring an expert comes with benefits that are too valuable to overlook. You can learn more about why you should entrust the help of a Kelowna building contractor on our blog. Paying a contractor can be pricey depending on who you hire, but most people pay between 10-20% of their total construction cost as the fee.
- Building Material Costs in Kelowna
The last one is somewhat obvious, but many individuals overlook how quickly the price of materials can add up. Especially, when you factor in supply chain shortages, quality of goods, and labour costs. Finishes like custom cabinetry, high-end appliances, paint, energy-efficient windows/doors, and tile work can all significantly alter the price of building a house in Kelowna. Your contractor will often have a preferred supplier network that will help you save on costs. This is another valid reason why working with an experienced contractor with a solid reputation is ideal when you’re building a new home.
Programs That Can Help You Achieve Your Dream of Building a Custom Home in Kelowna
If building your dream house feels just out of reach, fear not. There are several government incentives to help aspiring homeowners achieve their goals. One of these programs is the first-time home buyer incentive. In British Columbia, the provincial government offers a reduction or complete elimination of property transfer tax when you buy/build your first home. To qualify for this exemption the home must be the person’s primary residence and the market value must not exceed $860,000 for a partial exemption or $835,000 for a full exemption.
Contact us About Home Construction Kelowna Today!
Building a new home is an exciting adventure. If you’d like to work with Arnold Construction Company in Kelowna to get started on your project, contact us today. We’d be happy to help you build the perfect new home for your needs. Be sure to check out our social media page for current and past projects we’ve worked on. We look forward to working with you soon!
