Building a luxury home will not only offer your family exquisite and quality living spaces but, also significantly increase the value of your property. However, the definition of luxury is often personal. You can opt for an ecological structure, bespoke extravagant living space, or any other customized home. Nevertheless, there are several things involved in building a luxury home that you should know to estimate the costs.
Overall Costs of Building a Luxury Home per Square Foot
Compared to other ordinary homes, the cost of building a luxury home is usually higher in terms of square footage. Many experts say the overall costs of building a luxury home may vary by state or city, design, building materials, and labor. However, most builders will estimate the cost of building a luxury home between $200 and $500 per square foot.
The price that you will ultimately pay for the construction will mainly depend on the location of the home, the design, and the footprint of the structure as well as the quality of materials used on the house.
The residential construction costs vary significantly from one state and city to another. If you are planning to build a high-end luxury home in urban areas with high costs of living like San Francisco or New York, the cost per square footage could hike up to $400 or more.
The size and design features of the home will also account for a significant percentage of the building costs. For instance, if you need a luxury home with a basement, you can expect to spend an additional $100 to $300 per square foot.
Of the overall building costs, labor will account for about 40% while the materials, administrative, and permits will take up the remaining. Nevertheless, the key factors that you should consider to determine the cost estimates for building a luxury home include location, size, and design of the house, construction materials, and labor.