How Much Does it Cost to Build a New Custom Home in 2023?

Embarking on the journey of building a custom home sparks excitement and anticipation. However, a question that lingers on the minds of many prospective homeowners is, “How much will it cost?” While finding an exact answer is akin to determining the length of a piece of string, we’re here to shed light on the intricacies of custom home costs while keeping it as simple as possible.

The Short Answer

As the saying goes, “How long is a piece of string?” This adage resonates remarkably with the subject of new home costs. Reflecting on the past year, the range of costs for our completed custom homes spans from $2,000 to $2,900 per square meter. This range underscores the individuality of each project and the importance of considering various factors that influence costs.

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The Surge in Building Costs

In recent years, the construction landscape has witnessed a noticeable uptick in building costs. An insightful study conducted by the Association of Professional Builders indicates that the cost of constructing a new home surged by 15% to 50% in 2021. While Wagga Wagga experiences the milder end of this spectrum, there’s no denying the upward trend in prices.

A Case in Point: The 4-Bedroom Home

For illustrative purposes, let’s focus on the popular 4-bedroom home – a choice favoured by many of our clients. Building costs hinge on several variables: finishes, materials, and architectural design. Drawing insights from the Australian Bureau of Statistics (ABS), we’ve compiled estimated cost ranges per square meter for different scenarios:

1. A 4-bedroom weatherboard home in 2023 costs between $2,407 and $3,210, contingent on finishes and inclusions.
2. Similarly, a 4-bedroom brick veneer home lies between $2,558 and $3,371.

(these figures are the average across the whole of Australia)

Delving Deeper into the Factors

While these figures provide a broad outline of 4-bedroom custom home costs, it’s vital to consider the interplay of various factors influencing the final expense:

1. Location: Your property’s location plays a pivotal role, influencing aspects like site accessibility, slope, and potential additional charges for remote sites.
2. Customisation: The extent of customisation profoundly impacts costs. Unique architectural designs and personalised preferences contribute to the final bill.
3. Material Selection: Your choice of building materials is a significant determinant. Investing in quality and sustainable materials might carry a higher initial cost but promises long-term savings.
4. Labour and Market Conditions: The availability of skilled labour, fluctuating wage rates, and market dynamics in 2023 influence building costs.

A significant detail worth noting is that certain spaces affect square meter costs differently. For instance, adding a 5m² third bathroom incurs more expense than an equal area allocated for outdoor space. Similarly, small homes typically carry higher costs per square meter due to shared higher-cost areas like kitchens and bathrooms.

A Closer Look at Perspective

At Lancaster Homes, most of our custom home projects fall within the medium to high level of finishes. Looking back over the past year, the range of completed projects spans from $2,000 to $2,900 per square meter. Our team diligently maximises material efficiency, incorporates innovative design elements, and optimises labour resources to ensure that your dream home remains within reach.

Building your dream custom home in 2023 is a journey filled with promise. Equipping yourself with insights into cost implications is essential. Collaborating with seasoned designers and builders empowers you to design a home aligning with your vision and budget. Our dedicated team stands ready to guide you every step of the way, ensuring your dream home materialises while staying within budget. Here’s to a journey of turning aspirations into reality—happy building!