In California, the average cost to build a house is $375 per square foot. For a 2,000 square foot home, the total price would be around $750,000. However, the overall cost ranges from $900,000 to $1,500,000 depending on factors like location, property type, labour, materials, etc. The full construction process typically takes 9-12 months from start to finish.

Key Takeaways

  • Cost per square foot ranges from $300-$500
  • Average cost is $375 per square foot
  • A 2,000 sq ft home costs $600,000 – $1 million on average
  • Total price ranges from $900,000 to $1.5M
  • Build time is typically 9-12 months

The Average Home Building Cost in California

The average cost to build a home in California is about $300 to $500 per square foot. According to Forbes, for a 2,000 square feet house, would have to pay approximately $600,000 – $1 million. However, total construction costs can range from $900,000 – $1,500,000 depending on factors such as location, materials, features and labour.

Also read: How Much Does it Cost to Build a House in Connecticut

Average Cost Based On Square Footage in California

Square FootageAverage Cost per sq. ft.Total Average Cost
500 sq. ft.$450$225,000
1,000 sq. ft.$425$425,000
1,500 sq. ft.$400$600,000
2,000 sq. ft.$375$750,000
2,500 sq. ft.$350$875,000
3,000 sq. ft.$325$975,000
3,500 sq. ft.$300$1,050,000
4,000 sq. ft.$275$1,100,000
4,500 sq. ft.$250$1,125,000
5,000 sq. ft.$225$1,125,000

Average Cost to Build a House in California By Number of Bedrooms

BedroomsAverage Cost RangeTypical Square FootageNote
1 Bedroom$160,000 – $900,000800 – 1,500 sq. ft.Range reflects significant variations due to location, size, and amenities.
2 Bedrooms$200,000 – $1.2 million1,000 – 2,500 sq. ft.Costs increase with larger size and additional features.
3 Bedrooms$400,000 – $1.62 million1,900 – 2,600 sq. ft.Most popular option, with significant price variability based on details.
4 Bedrooms$500,000 – $2.4 million2,500 – 3,500 sq. ft.Larger living spaces and potential for luxury features drive up costs.
5+ Bedrooms$750,000 – $3 million+3,500 sq. ft. and abovePremium option with significant customization potential and high costs.

Average Cost to Build a House in California by Number of Stories

StoriesAverage Cost per square footTotal Average Cost (2,000 sq. ft.)Note
1 Story$350$700,000More land may be needed, impacting total cost.
2 Stories$375$750,000Most common option, offering additional space and efficiency.
3 Stories$425$850,000Significantly higher costs due to complex construction and potentially steeper foundation.

Price to Build a House in California by Style

StyleModular Construction (per sq. ft.)Stick-Built Construction (per sq. ft.)
Ranch:$300 – $400$400 – $600
Cape Cod:$300 – $450$450 – $650
Colonial:$350 – $500$500 – $750
Mediterranean:$400 – $550$550 – $850
Mid-Century Modern:$450 – $600$600 – $950
Contemporary:$450 – $650$650 – $1,000+
Custom Design:Varies based on complexityVaries based on complexity

Costs by California City

CityAverage Cost per sq. ft.Example Cost (2,000 sq. ft.)Note
Sacramento$300 – $330$600,000 – $660,000Most affordable major city option.
Fresno$300 – $350$600,000 – $700,000Slightly higher than Sacramento but still budget-friendly.
Bakersfield$325 – $375$650,000 – $750,000Offers lower land costs but potentially higher construction costs.
San Diego$400 – $500$800,000 – $1 millionCoastal charm comes with significantly higher costs.
Los Angeles$450 – $550$900,000 – $1.1 millionPremium location translates to the highest building costs.
San Francisco$500 – $800$1 million – $1.6 millionMost expensive major city, with costs surpassing other options by a large margin.

Also read: How Much Does it Cost to Build a House in Chicago

House Building Expenses Across States in United States

StateAverage Cost per sq. ft.Example Cost (2,000 sq. ft.)Factors Influencing Cost
California$400-$600$800,000-$1,200,000High land costs, complex construction in some areas
New York$350-$550$700,000-$1,100,000High demand, urban construction limitations
Colorado$300-$450$600,000-$900,000Mountain terrain, varying demand between regions
Texas$250-$400$500,000-$800,000Wide range due to size and diverse urban/rural areas
Florida$200-$350$400,000-$700,000Affordable options, hurricane-resistant requirements
Georgia$150-$250$300,000-$500,000Most affordable among high-population states
Minnesota$200-$300$400,000-$600,000Cold climate construction adds to costs
Washington$250-$350$500,000-$700,000Mountainous areas, Seattle metro drives up costs
Arizona$200-$300$400,000-$600,000Desert climate conditions affect construction
Michigan$150-$250$300,000-$500,000Great Lakes influence materials and construction

A Comprehensive Guide to the Cost Breakdown of Building a House in California

To better understand the full costs associated with constructing a single family residence, let’s break down a typical 2,000 sq ft home budget:

Land Acquisition Costs:

  • Land clearing, grading, soil assessments: $5,000 – $15,000
  • Basic utility installation (water, electric, sewer): $10,000 – $30,000
  • Land plot: This cost can vary dramatically based on location and size. In less expensive regions like Bakersfield, expect $50,000-$100,000 per acre, while coastal areas like Los Angeles can reach $500,000 or more per acre.

Architecture, Permits & Surveying Fees:

  • Architectural blueprints & design: 5-10% of total construction cost ($50,000-$100,000 for a 2,000 sq. ft. house)
  • Local/state permitting fees: $5,000 – $10,000
  • Survey of land plot: $2,000 – $5,000

Site Preparation & Foundation:

  • Initial groundbreaking, excavation: $5,000 – $10,000
  • Poured concrete foundation & footings: $20,000 – $40,000

Framing & Roofing:

  • Lumber framing materials & labor: $30,000 – $50,000
  • Composite roof shingles & sheathing: $10,000 – $20,000

Windows & External Finishing:

  • Installation of 105 windows (~$500 each): $52,500
  • External siding, fascias, gutters & paint: $20,000 – $40,000

HVAC & Ventilation:

  • Furnace, central air & ductwork: $20,000 – $40,000
  • Bathroom vents, range hoods: $5,000 – $10,000

Plumbing & Electrical:

  • Copper supply lines, PVC drains, sewer line: $20,000 – $40,000
  • Light fixtures, outlets (200+) & wire runs: $20,000 – $40,000

Insulation, Drywall & Paint:

  • Fiberglass insulation, moisture barriers: $10,000 – $20,000
  • Drywall panels, interior paint, trim carpentry: $20,000 – $40,000

Flooring, Tiles & Countertops:

  • Hardwood, ceramic tile, vinyl plank flooring: $20,000 – $50,000
  • Granite slabs & limestone countertops: $10,000 – $30,000
  • Cabinetry & fixtures: $20,000 – $50,000

Driveway, Sidewalks & Landscaping:

  • Concrete driveway & walkways: $5,000 – $15,000
  • Soil grading, trees, sod, irrigation: $10,000 – $30,000

Total Custom Home Building Cost:

The total cost for a custom home in California can range widely depending on factors like location, size, material choices, and contractor fees. Based on the average figures provided above, a 2,000 sq. ft. custom home in California could cost anywhere from $700,000 to $1,300,000, excluding land acquisition costs, which can significantly increase the total price tag.

Also read: How Much Does it Cost to Build a House Alaska

Step-by-Step Process to Build a House in California

  • Find and purchase land: Research locations, housing markets, and available lots. Hire a real estate agent if needed. Consider factors like commute, schools, and community.
  • Get required permits: Work with the local planning office on zoning, entitlements, variances needed. Hire civil engineers for geological surveys if required.
  • Design house plans: Hire architects to draw up home plans and create 3D renderings. Get structural engineering analysis. Finalise room sizes, layout, materials.
  • Select a general contractor: Interview and obtain bids from several home builders. Check references, licensing, experience. Negotiate construction contract.
  • Secure financing: Work with lenders like banks and credit unions to get a construction loan or home line of equity to fund building costs.
  • Break ground: Permit issued once plans approved! Contractor prepares the lot, digs foundation, pours concrete slab. Framing and roof next.
  • Oversee construction: Builder will manage schedule and subcontractors. Review progress regularly and select interior finishes like tiles, cabinets, lighting fixtures.
  • Inspection and completion: Throughout build, county/city inspectors validate electrical, plumbing, structural elements to meet building codes and issued permits.
  • Move in: Once final interior details complete, inspections passed, and certificate of occupancy granted, finish the landscape and start enjoying the new home!

Tips for Building Affordably

  • Buy land in affordable areas: Look beyond coastal urban centers to inland and Central Valley regions with cheaper property. Can save hundreds of thousands.
  • Utilise pre-fabricated components: Modular or offsite fabrication can streamline on-site labour needs for framing, reducing a significant cost.
  • Stick to essentials in floor plan: Limit custom add-ons in early design stage. Bonus rooms, excess bathrooms drive up square footage.
  • Size heating/cooling systems efficiently: Don’t oversize AC and furnaces for space. Install a programmable thermostat. Only heat/cool areas as needed.
  • Use energy efficient building methods: Strategies like passive solar design, solar roof tiles, spray foam insulation, triple-glazed windows save money long-term.
  • Provide your own subcontract work: If skilled, act as your own electrician, plumber, landscaper instead of sourcing- saves 20% or more in labor.
  • Purchase materials/fixtures directly: Instead of builder markup, purchase own lighting fixtures, sinks and tiles from building supply stores.
  • Avoid luxury finishes: Limit expensive stone countertops, premium appliances and sound systems. These escalate the budget significantly for minimal value.
  • Be your own project manager: Closely oversee each phase and trade. Making payments yourself instead of to the general contractor can save substantially.

Tips for Controlling Your Building Expenses

  • Get multiple bids for each phase: Whether it’s pouring the foundation or installing HVAC equipment, gather 3-4 quotes from subcontractors and suppliers.
  • Define budgets for each trade: Establish caps on what you’ll spend for lumber, concrete, drywall, plumbing, electrical, etc. Reassess if necessary.
  • Analyse each material/finish decision: Do you need a $10,000 La Cornue range or will a $3,000 JennAir work? Avoid excess.
  • Use allowance system with subs: Specify payment of say $5,000 for lighting fixtures — if they find good deals, they pocket savings.
  • Leverage contractor relationships: See if your builder can get discounts from long-time subcontractors and providers.
  • Have payment schedule align with progress: Tie large payment instalments to completion of defined project milestones.
  • Oversee all receipts and change orders: Review and approve any deviations from budget and plans to avoid unexpected add-ons.
  • Be flexible on timeline: If not in a rush, you can save tens of thousands by going with contractor’s schedule openings rather than demanding expedited timeline.
  • Be ready to get your hands dirty: Take on minor finish work like paint touch ups yourself at the end. Sweat equity saves dollars!

Factors That Influence the Building Cost

  • Location – Property values and labor costs vary dramatically depending on the city, suburban, or rural setting. Land prices also impact the overall budget.
  • House Size – Square footage determines materials needed. Bigger homes cost more to build but allow more future resale value.
  • Customization – Using higher grades of finishes (hardwoods, stone, etc.) drives up pricing rapidly versus builder-basic finishes.
  • Layout Complexity – Simple rectangular layouts are cheapest. Angles, multi-levels, open concepts require more custom framing and details.
  • Foundation – Basic slab is cheapest while basements, slopes, poor soils call for upgrades like pilings or retaining walls.
  • Energy Efficiency – Insulation, windows and HVAC systems impact utility costs long-term. Higher upfront spending pays off eventually.
  • Contractor – Production builders offer streamlined processes while custom firms charge premium rates. Owner-building saves the most.
  • Roofing Materials – Asphalt shingles are affordable but only last ~20 years. Premium materials like slate cost more but endure decades.
  • Land Features – Clearing dense vegetation, grading, drainage considerations all add site development costs before constructing.

How Long Does It Take to Build a House in California

  • Design, permitting, hiring contractors: 1-2 months
  • Clear lot, break ground, dig foundations: 1 month
  • Framing and roofing: 1.5 months
  • Electrical, plumbing, HVAC: 1 month
  • Insulation, drywall, paint: 1 month
  • Flooring, tiles, countertops: 1 month
  • Driveways, landscaping, touch-ups: 0.5 months

Total timeline: 9-12 months

Factors that can delay timeline:

  • Weather delays
  • Supply chain disruptions
  • Complex architectural designs
  • Permitting issues

House Building Financing Options

  • Construction Loans – Offer financing in stages tied to completion percentages; cover construction costs and converted to regular mortgages after building
  • Personal Loans – Use available personal equity as collateral to borrow money to pay for materials and labor
  • 203(k) Rehab Mortgage – FHA product to buy a home and fund repairs up to $35K in one loan
  • Home Equity Line of Credit (HELOC) – Leverage available equity in current home to access funds for construction costs
  • Personal Savings – Self-finance small projects using your existing savings if possible
  • Family Loans – Borrow from family members at friendly terms to wholly or partly finance constructions
  • Retirement Account Loans – Utilize certain retirement balances through borrowing against the accounts
  • Credit Cards – Put purchases on cards with intro 0% periods; risky due to high eventual interest

Benefits of Building Your Own Home in California

  • Customization – Design home exactly to your specifications and preferences
  • Potential Cost Savings – Building from scratch can cost less than buying existing in some markets
  • Pride of Ownership – Personal satisfaction from overseeing the process hands-on
  • Better Resale Value – Buyers appreciate special touches & brand new condition
  • Latest Trends – Open concept, smart home tech, sustainable materials
  • Lot and Neighborhood Selection – Choose an ideal location suited to lifestyle
  • Generational Living Support – Accommodate aging parents or kids returning home
  • Financial Leverage – Use real estate equity growth to build assets

Is it cheaper to buy an existing home instead of building new construction in California? 

In most cases, yes – purchasing a comparable single family home will cost $600,000 to 1,000,000.

While constructing new allows endless customization to your specifications, the costs add up quickly: acquiring land can exceed $900,000 to $1.5M in prime locations before even breaking ground. Next, materials, specialised labour, and complex architectural designs ramp up the overall budget – easily over $300 per SqFt.

In contrast, buyers can shop for homes matching their size, bedroom/bath, and desired neighborhood for cheaper than starting from scratch. While finding the perfect floorplan can prove challenging, established pre-owned homes don’t incur the myriad expenses tied to new construction. And they’re often move-in ready within a short closing period.

The main exception is luxury custom builds using premium materials and fixtures priced well above average resale values – think multi-million dollar mansions on large land plots. For typical family homes, however, there are major savings found in California’s existing housing stock versus taking the brand new construction route. Just prepare for potential renovation costs down the road.

Building vs. Buying a House: Key Differences

Constructing a custom home allows you to tailor every aspect to your exact preferences – from the architectural layout to the materials and fixtures. However, it comes at a steep price, with build costs ranging $300-$500 per square foot. Between acquiring land, securing permits, hiring contractors, sourcing premium materials, and intricate construction timelines, you’ll invest 9-12 months and $700,000+ for a typical 2,000 sq ft home.

Buying an existing house capitalizes on what previous owners have already developed to avoid massive upfront expenses. While finding a resale with your perfect layout proves difficult, established homes in move-in condition cost $100,000-$150,000 less than equivalent new builds. You sacrifice customization for the pre-designed floorplan, but can move in quickly after closing without waiting months on construction. Budget-conscious buyers or those needing immediate housing often go the resale route as a smarter investment overall.

In essence: custom building brings unlimited personal customization yet inflated costs and timelines, while buying resale trades off some preferences for huge savings and quick move-in readiness. Know your must-haves before deciding to construct vs purchase a home.

Conclusion

Building a house in the Golden State demands careful financial planning and decision making. While minimum costs fall around $300 – $400 per square foot, pricing frequently reaches $500 per square foot or over $1 million for luxury homes with premium finishes and features. Consider all influencing factors from property selection to contractor fees when estimating your unique custom home building budget. But also realize you can implement various cost-cutting measures through strategic design choices and construction process optimizations.

Frequently Asked Questions (FAQ)

How much does it cost to build a house in LA?

In the Los Angeles area, expect to pay $200 to $500 per square foot for home construction costs. So a 2,000 square foot house in LA is between $500,000 and $900,000, on average. Property prices and labor rates drive up expenses.

How much does it cost to build a 2000 sq ft house in California?

It typically costs around $900,000 to $1,500,000 to build a 2,000 square foot house in California. With average building costs of $375 per square foot, a 2,000 sq ft home runs about $1,000,000 plus to construct.

Why is building a house in California so expensive?

Factors like high real estate values, prevailing wage labor laws, strict building codes, limited land availability, and high material costs due to demand make constructing California homes very expensive. Permits, contractors and architects also bump up pricing.

How much does it cost to build a 3000 sq ft house in Florida?

A 3,000 square foot home in Florida averages around $100 to $200 per square foot for construction costs. So most 3,000 sq ft houses range from $110,000 to $350,000 to build in the state. The amount varies by location and finishes.

How big is a 2000 square foot house?

A typical two-story, single-family 2000 square foot house with 4 bedrooms and 2.5 bathrooms is around 40′ x 50′ in size (50′ x 40′ on the floors). This provides comfortable living space for most families.

How Much Long Does Construction Process Time?

It takes 270 to 360 days on average to build a custom home in California from start to finish. The typical timeline ranges from 9 to 12 months for the entire process including planning, permitting, construction, and inspections before the final occupancy approval.

Categorized in:

Housing,

Last Update: January 27, 2024