The short answer is it depends. Ballpark figures for building a custom home here in Victoria range from $400 to $1,000 per square foot. That’s a big range – remember these numbers represent the general average and don’t take all factors into consideration. Building a custom home is an intricate endeavor, and ballpark figures might not represent the house you are planning to build.
If you want to assess the feasibility of your custom home or renovation project, it’s essential to consult with an experienced contractor and carefully evaluate all relevant factors. General cost estimates can only provide a rough guideline; the real insight comes from a detailed, project-specific review. Let’s take a closer look:
Building Variables
The cost for building or renovating a home can vary in a big way depending on the wants and needs of your family. Here are some key factors to take into consideration:
Location
Location, location, location. Everyone wants to live in a nice neighbourhood, but be aware you’ll pay a premium for it – especially in Victoria. Iconic neighbourhoods like the Uplands have become highly desirable thanks to the large lots, wide streets and underground services – all within close proximity to downtown Victoria, surrounding beaches, and Oak Bay Village.
You should also be mindful that Victoria is made up of 13 different municipalities. At the municipal level, each is governed a little differently. While the Building Code remains the same across the entire province, each municipality has its own permit triggers, zoning bylaws and systems for building homes. Some Victoria municipalities emphasize preserving character while others are distinctly urban. Having a builder on your team who understands the municipal nuances will help ensure the neighbourhood meets your plans and unique requirements.
Another location factor to consider is whether the land is waterfront or not. Building or renovating by the water will always be more expensive due to regulations around environmental protection and the risks of extreme weather events. There are also exterior design aspects to consider, to ensure the home stands up to salt exposure.
Land Prep
With location aside, the piece of land you select for development will have a significant influence on the cost of building.
The physical topography of the land is a critical consideration. A lot with significant slopes or rock outcroppings (like this property) will require more extensive preparation than a parcel that previously accommodated a home. This kind of land has the unique ability to deliver incredible views. But keep in mind heavy machinery may be necessary for grading, and additional measures could be required to stabilize the site, prevent erosion, and create a level building surface. Modern technology makes it possible to build on land previously considered unbuildable, but it does add time and cost to the building process.
Then you have to think about the vegetation on the property. A wooded property will need to be cleared, which will require tree falling and disposal. Tree protection bylaws require permits to be obtained and in some cases protected trees cannot be removed at all, necessitating designing around them (like this property). There could be other debris to deal with as well, like rocks and shrubbery.
Finally, home builders will need to consider the soil composition. Thorough soil testing will determine if the site is suitable for building or if amendments must be made first. If the soil is unstable, rocky, or otherwise inadequate, work will be required to create a stable base for the foundation. But in a more likely scenario, your custom home will be built upon rock, in which case blasting may be required to prep the land.
Size & Scope
How big you want to build and how bold you want to be will have a direct impact on the bottom line. A home with more complex design features will call for not only more expensive materials, but more time for design and construction. Hallmarks of modern design such as support-free rooflines, minimal or absent transitions or trim, expansive layouts, intricate façade systems and unique architectural styles will cost more than a more standard build. Integrating advanced smart home tech will come at a cost too, but offer an added benefit of more attention to lighting, security, entertainment and climate control in different areas of the home.
The same goes for a renovation scope. Bigger and better will always cost more, but there’s also the scope of the project to think about. Establishing what you are trying to accomplish will help determine the right scope of work for you. A trusted professional can help guide you through the many options.
- Cosmetic. Without changing anything structurally or having to upgrade electrical or plumbing systems, a cosmetic reno is a lower cost route that can still dramatically improve the appearance.
- Kitchen or Bathroom. The most common renovations are for the kitchen and/or bathroom. In some cases, no structural changes will be needed. But often times, fixtures will be replaced, electricians and plumbers will be required, and the layout of the space will need to be altered in some way.
- Structural. A structural reno includes home additions, basement renos, bump-outs and garage conversions. These types of renovations are more complicated and costly, because they require structural changes to the home.
- Heritage Reno. Renovating a heritage home has its own complexities. There could be special covenants on the property relating to heritage status, plus unforeseen structural or hazardous material issues that could arise due to the age of the home. Having a heritage home restoration specialist in your corner is essential, especially if you want to maintain the heritage aesthetic while adding a few modern amenities.
Home Building Cost Breakdown
The cost breakdown for building or renovating a custom home in Victoria will vary greatly depending on the factors mentioned above. Generally speaking, your smallest costs will be permits and approvals while your largest costs will almost always be labour. While each project is unique, here are some ballpark figures to guide you during the budgeting process:
Land
- 10-20%
- Location will play a major part in this cost. The average parcel of land goes for north of $900K in Victoria, with the price per square foot ranging anywhere from 100-$200+ (and beyond for waterfront).
Design & Permits
- 5-10%
- For a fully custom home, expect the upper end of this range or even higher for design and permits.
Fixtures & Appliances
- 5-10%
Construction
- 30-60% for labour
- 30-50% for materials
Contingency
- 10%+
- Keeping a contingency fund in reserve is necessary for any unexpected costs. These surprise costs could be encountering an unexpected issue, a change to the design or other changes necessitated by changes to the availability of materials. Having cash on hand to address the unexpected and avoid major delays is the best case scenario.
If you’re in the budgeting stage of your custom home building journey, consult with Horizon Pacific Contracting and dive into your project feasibility with the help of their home building professionals. With over 30 years of experience building custom homes in Victoria, we’ll walk you through everything from building siting and affordability to structural complexities and municipal permitting. Contact us today to schedule a consultation.
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