Your dream home awaits in Virginia - How can you stay up-to-date on the constantly changing costs? Birchwood Homes is here to help.
Introduction
Virginia is home to more than just beautiful landscapes. Its historical significance and vibrant communities make it an attractive state to lay down roots by building your dream home. Building a custom dream home is exciting, but it can also be overwhelming, and one of the biggest reasons it's overwhelming is because of the costs involved. In this article, we are going to go over the various factors that influence the cost of building a home in Virginia. Let's go ahead and get started.
Paving The Way: The Key Factors That Influence The Costs Of Home Building
Location, Location, and More About Location
The cost of building your own home in Virginia is significantly influenced by where you want to build. Each region in the state of Virginia has a different local economy that plays a crucial role in determining construction expenses, the cost of land, and more. For example, land in cities like Richmond and Arlington is more scarce, making the price much more expensive.
Further, more densely populated regions have stricter building codes and regulations, adding to overall construction costs. More rural areas outside the cities, like the Shenandoah Valley and the Southwest, have land prices much more affordable than their urban counterparts.
However, transportation and utility construction could increase in cost due to the distance from urban areas. Additionally, factors like proximity to essential services like schools, healthcare facilities, and recreational amenities can also influence costs. Therefore, when you are looking to build a custom home in Virginia, counties that are a good mixture of the two are ideal.
This is why we recommend building a new home in counties like Goochland or Powhatan. Although they are more rural, counties like these are not far from the City of Richmond and other more suburban areas like Short Pump. This gives you the privacy, peace, and lower costs associated with living in the country, but won't increase transportation and utility infrastructure costs since these counties aren't far away from urban centers.
Style & Type Of Home
When you're building a home in Virginia, the size and style of your house will influence the construction costs. Single-family homes, condos, townhouses, or fully custom homes, come with varying levels of construction complexity and material requirements. Custom-designed homes tend to be the most expensive, especially if they require unique features and tailored designs. A standard, cookie-cutter single-family home is more budget-friendly.
Moreover, the size of your future home directly impacts the overall costs. This may sound obvious but larger homes require more materials, labor, time to construct, and larger lots. Additionally, if you want extra rooms, a more complex floorplan, higher-end finishes, luxury amenities, and advanced technology (security systems, automated appliances, etc.), can also increase the costs.
It's not just the amount of materials that can increase the costs, but the type of materials and finishes. If you opt for high-end, premium finishes and materials this will increase the overall costs. For example, you can choose between traditional wood framing or modern energy-efficient materials like insulated panels or insulated concrete forms. This is why your basic cookie-cutter houses in many communities are not as expensive as custom-built homes. They are using standard materials which may be more affordable but won't last as long.
Beyond construction costs, the size of your dream home is going to influence certain costs like property taxes, insurance, and utilities. Real Estate taxes will increase a certain amount depending on not just the size of the house, but the size of the lot and the locality it's in. This is why we recommend you build your new home in developing counties like Goochland or Powhatan. The same thing goes for utilities. Utilities are going to be affected by the size of the house, energy efficiency, and how far you are from utility sources.
Labor Costs In Virginia Vary By Skill Level And The Laws
You need skilled labor to build a house, whether you're hiring a crew or working with a custom new home builder like us. The final price of the project will be determined by the labor that's hired. You will need skilled workers and other laborers to get the job done right. As we have already discussed in previous sections, different factors determine the cost of labor. Certain regions might have a higher cost of living, thus your workers will want higher pay. The experience level of subcontractors, 3D designers, architects, etc. will all come into play.
Virginia Has Regulations & Permit Requirements That Can Affect Costs
Who really wants to think about permits and regulations? NOBODY! Unfortunately, they play a role in the cost of building a new home. Local and state authorities have placed rules and requirements on the construction industry. These laws ensure safety, environmental preservation, and adherence to zoning ordinances. These regulations do protect communities and set a higher standard for construction. But they can increase the cost of building your new home.
Builders and developers have to increase expenditures to comply with building codes and obtain permits. This is time-consuming and more labor-intensive. Additionally, land-use restrictions and environmental assessments can add costs, such as the need to mitigate environmental impacts or utilize specific building materials. Any of these items can increase the cost of building a new home in Virginia, but the measures ensure safe and sustainable real estate development around the state.
Your Lot Choice And Locality Will Affect The Cost
As we've said before, the region and locality can have an impact on the cost of new home construction. Lots of land in more populated and desired localities will be more expensive than lots in rural areas far from the suburbs or cities. Beyond the region, there are some other factors that can affect the price of the lot. The size of the lot is pretty self-explanatory because the larger the lot, the higher the cost.
Accessibility also factors into the cost of a lot. Even if a lot of land is further from a city, accessibility to amenities, mass transit (airports, trains, etc.), or business parks will increase the costs. This is because those lots will be more desirable as they are more rural and provide peace, but are not too far from jobs and amenities. Further, if a lot isn't easily accessible, it will increase construction costs because the crew will have to transport materials and equipment further.
Selecting a lot of land is a major part of the new home construction process since it's where the home will sit. But beyond price, there are so many factors that play a part in land selection. This is why we have an entire page dedicated to helping you select land to build your new home on.
The More Custom The Design, The Higher The Cost
When you choose to build your own home instead of purchasing one that is pre-built, it allows you to customize every aspect to suit your tastes, needs, and lifestyle. However, the more you customize it, the higher the cost. Let's talk about how the design can influence the cost.
Birchwood Homes offers a set of plans that you can choose from. You can either customize these plans or have something designed completely from scratch. Most custom home builders will give you this option, but further customization will come with higher costs.
First, you might need to pay for more skilled labor. A designer will be needed to create a 3D model of the home, and an architect will need to draw up the plans.
Second, if the design is architecturally intricate, it may require specialized labor and more materials, leading to higher construction costs.
Third, if you want to upgrade the fixtures, add more amenities, or have more energy-efficient technologies installed, this can further escalate the price.
In the end, when it comes to the design we recommend you budget for something that will end up in the middle. Unless money is not an issue, we recommend choosing the features that are most important to you, so you get the most bang for your buck.
Make Sure You Budget For Surprises
Since we are talking about the cost to build a new home in the State of Virginia, we have to talk about the surprise costs that can arise at any point during the construction process. The construction industry calls situations you can't control "acts of God." Here are some of the situations that can cause your new home construction costs to go up unexpectedly.
Unforeseen Building Site Conditions: At first glance, the lot you choose might look perfect. But, once we break ground the soil could be poor, environmental hazards can appear, or there is uneven ground making the foundation unstable. The new construction will then be delayed while these issues are fixed.
Further Customization and Upgrades: You may have finalized the design and the construction has begun, but suddenly you have second thoughts. Maybe you don't like the size of a certain room, the height of a ceiling, or the placement of doors and windows. These sudden adjustments will require edits to the plans, more materials, and delays if they are large changes.
Weather Delays: As we know, Virginia has some crazy weather patterns. There are snow and ice storms in the winter, days of rain, hurricanes, and plenty of powerful thunderstorms. Weather conditions can delay construction, hinder material deliveries, and increase labor costs.
Material Prices: Right now in 2023, the price of wood is high. But, that's just one example of how construction materials can fluctuate in price. You might budget for the material costs at the moment, but when it's time to order more materials supply chain disruptions can increase prices.
Unknown Utilities and Infrastructure Costs: There's more to new home construction than what you can see above ground. Sometimes you start connecting the new home to water, electricity, gas, or sewage, and suddenly there are infrastructure problems that need to be fixed.
There are many, many issues that can suddenly arise when you're constructing a new, custom home. It's important to find a new home construction contractor who will be open, transparent, and help you budget properly. Birchwood Homes is a family and veteran-owned business, and transparency is one of our biggest values.
More Key Takeaways And Facts About New Home Construction Costs In Virginia
The average new home takes 9 - 12 months to build, so it's not only costly but time-consuming.
The average cost is $155 per square foot.
Lumber for framing is the highest material cost: On average it costs around $33,000 to frame a 2,000 sq. ft. home.
Buying a home is still cheaper than building but might not provide you with all the features and benefits you need.
Overall Averages Of Building A New Home In Virginia
Keep in mind, these are averages and your location, home size, and customization level will increase or decrease these averages. You can verify these averages on HOUZEO.com, forbes.com, and homeadvisor.com.
Average cost by size:
Average Home Building Costs in Virginia: $310,000
Minimum (800 sq. ft.): $124,000
Maximum ($5,000 sq. ft.): $775,000
Average Range: $262,000 to $390,000
The Average New Home Building Cost By Square Footage
1,000 sq. ft. - $155,000
1,500 sq. ft. - $232,500
2,000 sq. ft. - $310,000
2,500 sq. ft. - $387,500
3,000 sq. ft. - $465,000
How The Cost Of Building A New House Is Affected By City Or County
Richmond - $169 per sq. ft
Charlottesville - $110 per sq. ft.
Arlington - $170 per sq. ft.
Virginia Beach - $180 per sq. ft.
Breaking Down The Cost Of Building A Home (Hard & Soft Costs)
Hard costs directly impact your new home's completion while soft costs aren't involved with the physical home (permits, 3D designers, etc.).
Hard Costs
1) Materials: 50% of the final total.
Wood
Plastics
Glass
Metal
Cement
Bricks
Shingles
etc.
2) Contractor Charges: 10% - 20% of the final total. Here is a list of the contractors you might need to hire.
Flooring installation
Roofers
Painters
Brick Masons
Landscapers
General Contractors
Plumbers
HVAC
Structural Engineers
Electricians
3) Electrical Materials: $7,500 - $12,500
Your electrical costs will vary and depend on the property size, type of wiring, wire material, and the amount that is needed.
4) Roofing Installation: $3,400 - $38,000
Roofing costs will depend on contractor costs, the type of roofing material, and the size of the roof.
5) Plumbing: $12,000
A plumber will install your toilets, faucets, bathtubs, and other features that require water. The cost will depend on the type of appliances and plumbing fixtures you choose and the sewage lines that need to be installed.
6) HVAC: $12,500
The overall cost will depend on the size of the property, the brand, and the type of system.
Soft Costs
1) Land Costs: $24,000 per acre.
Keep in mind this will depend on the region, county, or city your lot of land is in.
2) Building Permits: $5,000 depending on the locality.
Building permits
HVAC permit
Plumbing permit
Electrical permit
3) Home Interior Costs: Vary depending on fixtures, furniture, and professional designers.
Interior Fixtures: $20,000
Interior 3D Designer: $5,000
New Home Construction In Virginia FAQs: Frequently Asked Questions:
If you don't see the answer to a question you can contact Birchwood Homes.
Is it cheaper to build or buy a home in Virginia?
It is cheaper to buy a pre-existing home than to build a brand-new custom home. However, a pre-existing home might not suit all your needs, and personality traits, or be a viable option for the future. An older pre-built home might have hidden costs involved due to older appliances, more repairs, and additions. When you build your own home you can ensure the design, features, and future viability is perfect for you.
What is the average cost for a 2,000 sq. ft. home in Virginia?
A 2,000 sq. ft. home costs around $310,000 to build depending on the county, city, or region of Virginia you're building in. This average can also be affected by material cost changes, permit cost increases, or increased contractor costs.
What is required to start building your own home in Virginia?
The bare minimum to build a home in Virginia is a building permit. On the application, the county or city will want information such as the address, contractor's name and license number, and estimated cost of the project.
Is building a custom home cheaper than a new mass-produced home?
A custom home can end up cheaper than if the contractor uses factory-prebuilt structures and modular home components. But usually, a custom home is more expensive than a mass-produced home because of the unique architecture, extra costs for skilled labor, more materials, and the locality where the project is located.
To Conclude: Home Building Costs In Virginia Vary, But Could Be The Best Decision For You
The decision to build your own home is a big one, and it's important you understand all the various factors that go into determining the cost. You can check out our blog post "How to Choose the Right New Home Builder". If you have any questions in regard to new home construction, custom homes, or new home design, give us a call or use our contact page to reach us. We will meet with you at no cost to help you through the process. It's our goal to make your new home construction process as easy as possible.
If you would like more information. Check out this video from the YouTube channel "Talk About Houses." This video talks about the new home-building process and the costs associated with it on a national level.