Building a Home in California is Expensive – Part 1

Building a Home in California is as Expensive as Gold!

Factors Affecting Construction in the Golden State

Building a Home in California

Is your dream of a custom-built home facing an unsurmountable cost barrier? Not sure what makes building a home in California so expensive? As premier construction experts in this market, we know that a custom home is a much sought-after opportunity to personalize your living space.

However, the three primary reasons for the high cost of new construction in California are:

  • Labor: Availability and cost, depending on the size and complexity of your project
  • Materials: Your design preferences will define the cost of construction materials
  • Permits: Prices vary by location and the volume / type of work involved

In this 3-part series, we’ll help you understand each cost barrier that stands in the way of building your dream home in California.

Part 1: Insights into Labor Costs for Building a Home in California

Labor is the most significant component of any home building project, and the related costs begin from day zero of commissioning your new construction. Here is a breakdown of the various labor costs that you are likely to incur:

  • Consultation Fees: For the services rendered by the land surveyor, the architect, the construction engineer, and their teams.
  • Foundation and Framing: To cover activities related to excavating, pouring, backfilling, landscaping and setting up the structure’s frame, trusses and metalwork.
  • Exterior Finishing: Building the walls and inserting the doors, windows and roof.
  • Interior finishing: Completing the insulation, drywall, trim, painting, flooring, plumbing, electrical connections and other such sub-projects.
  • Finer Details: Preparing the driveway and patio, building the deck, adding a pool, installing the home’s heating, cooling and ventilation.

Factors that Impact Labor Costs in California

As per the Bureau of Labor Statistics, the average cost of construction labor in California is approximately $37.59 per hour, which is 12% higher than the U.S. national average of $33.52 per hour. In addition to costly manpower, there are a few other factors that may influence labor cost:

  • The size and design of your home: The greater the square footage, the higher the costs. Also, complex architectural details, unusual shapes, or an exceptionally high number of corners or rounded edges will add to the scope. Greater effort means higher labor costs. Similarly, features such as a deck, a pool, or an outdoor kitchen will increase the number of man-hours and consequently, your cost.
  • Number of stories: The higher you wish to build, the more design work, excavation, and construction expenses are involved. You may also have to pay a premium for additional construction equipment and the safety of the laborers on site.
  • Materials and systems: If the materials or systems that you select require specialized skills or equipment for installation, that will add to your cost of labor.

Hire a Trusted Contractor to Build Your Dream Home

At Flegel’s Construction Co., we have extensive experience in constructing new homes to your exact specifications. Our team of qualified architects and master craftsmen will deliver your new home, on-time and on-budget. You can count on us for stylish, comfortable spaces created with quality materials and flawless execution.

We continue to serve a growing base of happy customers in and around the Bay Area.

Stop wondering why building a home in California is so expensive! Call 408-269-1101 to set up a consultation or contact us online.

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