What is the average cost per square foot to build a new custom home?

There are many things that determine the cost to build a new custom home in Ontario. Each home we build is unique, so the best we can provide without discussing the details of your specific project is an overall range.

In 2022, our least-expensive custom home builds averaged $350/sq ft. Our higher-end homes were up to $950/sq ft. That’s a huge range, so let us explain a little bit about what goes into determining the cost of your home.

What determines the cost-per-square foot of a home?

Cost of materials:

• The cost of materials can vary widely throughout the year, and from year-to-year. Events such as natural disasters, wildfires, the cost of transportation, and overall demand are just a few of the things that may greatly impact the cost of raw materials which ultimately impacts the price the end consumer pays. Unfortunately these fluctuations are hard to predict, but we have good relationships with all of our suppliers and work to ensure that we purchase your materials at the right time to save you money.

Cost of labour:

• We only work with trained and skilled tradespeople. We will always recommend the best people for the job, but timing/availability, cost, and location can all impact who we will obtain quotes from. Working with experienced professionals ensures that your home is built right, and built to last. Once it’s done, we don’t want any surprises for you or for us.

Design fees:

• We have worked with numerous design professionals over the years and can help you put together a design team based on your vision and budget. This may include architects, architectural technologists, interior designers, and/or landscape designers. Each design professional/company will charge differently depending on the services they provide and level of education they have obtained.

Finishes:

• Selection of finishes such as lighting, flooring, tile, countertop, and cabinetry can change the cost-per-square-foot considerably. We will help direct you to suppliers who can provide a beautiful quality product that meets your budget and taste. If you have a product or look in mind, we can also send photos to our suppliers and ask them to provide samples for you to choose from. There is a lot of flexibility in finishes and we can work with you to take it in whatever direction you prefer.

Custom Cabinetry:

• Adding custom cabinetry can really add to the “custom” feel of your home. Do you want custom built-in shelving, custom closets, built-in desks, custom vanities and kitchens, mudroom cabinets, window/bench seats, or banquettes? All of these things can add to the cost of a home.

Custom Millwork and Trim:

• We pride ourselves on our craftsmanship and attention to detail. Custom trim and millwork is one of our specialties. Adding shiplap, crown moulding, panelling, coffered ceilings, wood beams, and/or oak ceilings can significantly add to the character of a home, but all of these specialty finishes do cost more than a standard drywall and baseboard trim.

Specialty rooms/spaces:

• Adding “specific-use” spaces can significantly add to the overall cost of a home. Do you dream of a wine cellar? Movie theatre? Indoor sauna? Golf simulator room? Indoor pool? Hidden speakeasy? Your own library? If you can dream it, we can build it.

Regardless of the finishes you choose, we will always provide you with options to meet your taste and budget. We also send you detailed breakdowns and receipts for all services and materials in an effort to maintain complete transparency.

How much does Kingsgate charge to manage my build?

There are many different ways that builders charge for their services. Each have their pros and cons. At Kingsgate, we charge a flat project management fee based on the anticipated scope of work. Our years of experience gives us an advantage when forecasting budgets and scope of work since we have been fortunate to complete projects at all different levels of complexity.

This fee is agreed upon before the project begins and does not change, regardless of the actual costs incurred during the project. This fee covers services in planning, organizing, and overseeing the project.

What is the difference between cost-plus and a flat fee?

Many builders will charge on a “cost-plus” model. In this model, the builder will charge a percentage markup for all materials and services (often in addition to a set project management fee). What this means is that the more you spend, the more they make. So for instance, if you decide to spend $40/sqft on your flooring  instead of $6/sqft, with a typical 20% markup your contractor will charge an additional $8/sq ft for the more expensive flooring (compared to an additional $1.20/sqft for the less expensive one).

We feel that a flat fee model builds more trust and transparency in the process compared to a “cost-plus”. We charge you for the work required to complete your project, regardless of how much the materials cost or how much the co-trades bill for their services.

If you have any questions about pricing or are wondering how much your build would cost, feel free to reach out to us.