If you’re considering building a new home, the city of Eugene, OR, is a great location with high property values and the potential for future growth. You probably have either a budget or a limited amount of money available to you from lenders, but you still want to know the ballpark cost to build a house in this area. Weighing your options carefully and choosing the right builder will go a long way toward building a house that has everything you want and still stays within your budget.
Home construction costs are dependent upon many factors. Some costs, such as building permits, are fixed and inevitable. You might reduce other costs by making trade-offs, giving up that one aspect of your home that is less than ideal to free up money for something you want more.
Labor, materials, and overall building costs vary wildly from year to year. In 2022, labor shortages and inflation have increased building costs slightly.
Some costs, such as those caused by construction delays, mistakes, and defective materials, may result from choosing a builder who is inexperienced or unfamiliar with Eugene, OR.
Read on to learn everything you need to know about home construction costs in Eugene in 2022. Then contact our Schar Construction team for a more detailed estimate of your building project costs.
Cost Per Square Foot
If you’re looking for a rough estimate of the cost to build a new home, you can reference the average prices per square foot for other houses across Eugene.
Generally, home builders pay between $110 and $240 per square foot, depending on the location, the grade of construction, and numerous other factors. However, inflation and rising housing costs in 2022 have positioned average prices on the higher end of this spectrum.
As a result, a 1,000-square-foot home can range between $110,000 and $240,000, while a 5,000-square-foot house can cost between $550,000 and $1,250,000. With these figures in mind, you can begin to narrow down your estimated home costs.
Cost By Construction Grade
You can also reference the average home construction costs by construction grade in Eugene.
Standard grade construction ranges from $110 to $150 per square foot.
Premium grade construction costs anywhere from $150 to $200 per square foot.
Luxury grade construction varies between $200 and $240 per square foot.
However, these figures can also depend on numerous factors, which we will discuss below.
The land on which you are building your single-family home can impact your overall costs significantly. These prices are variable and depend on several factors, such as:
The location of the land
The type of development it is zoned for
Whether or not it falls within a flood plain
Whether or not it is suitable for building
In Eugene, land with the best scenic views is often the most expensive. Eugene’s proximity to the Coast Range, Cascades, Willamette and McKenzie River provide plenty of beautiful views for homeowners. If you plan to incorporate these views into your home build, you’ll probably end up paying more for the land than you would in a residential neighborhood.
Affluent neighborhoods, like Bethel and Churchill, have some of the highest home prices in Eugene, OR, while other neighborhoods can be more economical. On the list of those priced higher are also Laurel Hill, Crest Drive and Fairmount.
Construction costs should not be strongly affected by the neighborhood unless high crime rates or inaccessibility complicate the logistics of getting materials to the build site or the neighborhood has more stringent building codes.
If you do not already own land, make sure that the land you are looking at is zoned for residential use and that its grade and soil composition is suitable for laying a foundation. Also, the land should not be prone to flooding, particularly if it is in the vicinity of the Willamette River.
Labor costs vary depending on the tasks involved in the home build. However, labor shortages across the U.S. have increased the typical labor costs slightly in 2022 compared to previous years. Working with a company like Schar Construction can ensure that you gain the most value from your costs.
Including additional spaces in your home build can also increase your home construction costs. Here’s an estimate of how much you will pay for the following features:
Basements: Between $30,000 and $80,000
Attics: Between $40,000 and $60,000
Garages: Between $7,000 and $15,000
In-ground pools: Between $40,000 and $70,000
Decks: Between $5,000 and $15,000
Including a basement, attic, or garage to the new construction of a home is much cheaper than to add one after the house is completed.
Cost of Building Materials
All things being equal, shortages of lumber or other critical materials can add considerably to the cost to build a house. Supply disruptions or sudden increases in demand may increase costs.
The costs of residential construction materials have climbed in 2022. According to a report from the Producer Price Index, residential construction costs increased by 19.4% between May 2021 and May 2022. Meanwhile, the costs of building materials have increased by 36.3% in that time.
In the current inflationary climate, with the cost of building materials likely to increase in the future as demand for construction rises, delaying your preparations for your new home could increase the overall cost of the build.
All homes are not created equal. As you plan your house, you may discover that you need some extra features. These additional perks could include a swimming pool, four-car garage, unique architectural feature, or accommodations for a resident with a disability.
Note that many of these additional elements could increase the home’s value and could be considered an investment in your home’s equity rather than an expense. Consider the value of comparable homes in your area with similar features when weighing the cost of adding extras to your home.
Efficiency and Organization
Poor planning or disorganized scheduling adds time to the build by adding to labor costs, fees for storage of materials, and potentially the cost of redoing work that could not be done properly because of a logistical snag. Similarly, an experienced home building company with a clear grasp of how long the tasks should take can set multiple construction processes in motion simultaneously and get the most out of every hour worked.
Schar Construction has an advantage in efficiency and organization. Decades of experience with home building, construction, logistics, and Oregon housing codes allow us to expedite and coordinate every step of the building process.
As you prepare to move into your new home, Eugene businesses and artisans will provide custom handiwork and essential services. Our long-standing relationships with suppliers and subcontractors enable us to anticipate problems and work proactively to make sure that every task is done correctly and on time.
How Will Building Costs Change In the Next 5 Years?
2022 is one of the most expensive years to build a house in the past five years. As a result, you may be wondering whether you should wait to build your home until building costs decline again.
One of the primary reasons building costs are so high right now is because of supply and demand. More people are building houses, and the supply is lower due to labor shortages. However, price hikes may eventually lead consumers to pour less money into the economy, creating a recession.
Some researchers predict a recession in 2023, which could lower construction costs slightly. However, overall costs will likely not return to pre-pandemic lows.
Even with the rising labor and building costs in 2022, building your own home can be more cost-efficient in the long run than buying a home.
Please note that any calculation of the cost to build a house is only a rough estimate until you have a specific property and floor plans in mind and have discussed building materials in detail. Contact our team at Schar Construction today to request your detailed estimate of home construction costs.