home construction

Building Your Home Can Cost Nearly $290,000

Building Your Home Can Cost Nearly $290,000

The average price of building your own home in Utah can cost nearly $290,000 in 2019. If you plan to apply for a construction mortgage or housing grant in Ogden or Salt Lake City, this figure could serve as a good benchmark.

It might be less expensive to buy an existing house particularly in Ogden, where median prices for existing homes cost more than $209,000 this year. However, competition for average-priced homes can be very tight that you’d be lucky to find one sitting on the market for more than a week. When you plan to build a house from scratch, you have more freedom on choosing the structural design and elements based on your budget.

Breaking Down the Expenses

The home’s foundation and site work will be among the first things to consider when creating a budget. Site works will account for around $16,100 of average home construction. This includes fees for architecture services, several permits, and other related expenses. Foundation work will cost approximately $33,450 for expenses such as the cost of excavation, concrete pour and retaining walls.

Framing expenses will account for around $52,000, while exterior finishes and housing systems like plumbing and electrical work will cost over $86,000. Interior finishing will also cost around the same amount. Final touches will cost almost $20,000 to add landscaping, driveways, and other outdoor structures.

Judging from this breakdown of expenses, it’s possible to minimize the cost by skipping any landscaping work or a driveway if you don’t plan on having a car or a garden. The allotted budget for interior fixtures will also depend on your preferred type of appliances, furniture, and flooring. However, it can be beneficial to invest an extra amount on furnishings that significantly add value to their properties, just in case you need to sell the house in the future. Home prices in some cities keep on increasing, and the trend is likely to continue in the next few years due to the strong demand for homes.

home construction planning by engineer and architect

Outlook on Home Prices

The average home price in Ogden will cost around $250,000 by next year, based on an industry forecast. This trend will be familiar not just in the city but also in other urban areas in Northern Utah. The housing markets in Salt Lake City, Provo, and Orem are just some examples.

Whether you end up buying a house or proceed to build your own, you’d need money to cover the expenses. Look for a financial service provider that provides loans for both home purchases and new home construction plans in case you haven’t made a decision yet.

In the end, building a house from the ground up can take up to 12 months before it becomes inhabitable. With that in mind, this isn’t an obvious choice for people who need to move in right away. While it’s more expensive to build a house, it remains a good option for people who want everything to be brand-new and free of problems in the next several years.

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