The Cost of Building a House in BC: How Much Does It Really Cost?

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Nov 4, 2024

Imagine stepping into your dream home, a broad smile on your face, your loved ones in a state of joy as they take in their new surroundings. Everyone is beaming. You’re completely relaxed as you breathe in the newness of your environment. You feel like you just belong, much like a mountain climber upon reaching the pinnacle of the mountain.

But… let’s face it—building can be expensive.

What is the cost to build a house in BC?

Building a new energy efficient home can be challenging and with such a big expense it’s natural to wonder who might have your best interests at heart—as well as who might mislead you as you venture into building your dream home. Even at the best of times, it can be difficult to trust—it is a fragile thing that is earned and not easily given. Nor should it be. When it comes to building an energy efficient house, you want to feel heard and understood. That your needs and desires are valued. Most of all, that you can trust that you and your future home are in good hands and are being well taken care of.

At Bercum Builders we understand those needs and take them to heart.

Knowing the financial aspects of building a house is a crucial piece of the process. Construction mortgages, such as completion mortgages and progress-draw mortgages, are essential to consider. With a progress-draw mortgage, the builder draws money in increments as construction progresses, unlike completion mortgages where funds are released only after the construction is finished. These types of mortgages come with additional complexities, like larger down payments and higher interest rates, compared to traditional mortgages. For some, opting for a new house in a subdivision might offer a balance of convenience and customization, avoiding some of the challenges associated with custom-built homes. For others, fully customizing your home might be what you’re after and well within your budget.

Regardless, at Bercum Builders, we stand by our core value:

We craft quality with integrity. Always.

And we do so with you in mind. Whether you’re a professional athlete, business owner, or entrepreneur when you decide to work with us, you become our top priority. When you choose an energy efficient house design, there are many aspects to bear in mind, not the least of which is cost. After all, your home is more than just a roof over your head. It’s your retreat. Your sanctuary. It’s something you want to be proud of. And when we design and build an energy efficient house for you, we want to be proud of it, too.

Energy efficient Home Plans

We work with you, not just for you. So before we get down to cost, here are a few questions (amongst others) for you to consider as you begin to move ahead with your energy efficient house plans.

How long do you plan to stay in your home?
Do you want to decrease your footprint? Is this important to you?
Are you interested in Solar PV ?
Do you want to have battery backup if the power goes down?
Do you want to live off-grid?

Your answers will begin to shape your home building journey and what it will cost to build your new house. Ultimately, quality and comfort are the real winners with more energy efficient home plans.

The length of time you intend to stay in your new home is also an important factor as long-term utility bills will be decreased with more efficient home construction. You might also consider things like triple-pane windows, better insulation or more insulation; these are all strong contributors to more efficient homes.

What does it mean to have an energy-efficient home?

Air tightness in your home. This is the key factor to using less energy and making your home feel more comfortable to live in.
Geothermal. Geothermal heat pumps can reduce energy consumption and emissions up to 44% compared to air-source heat pumps and 72% compared to standard air-conditioning equipment.
Smaller square footage and better use of your home plans.
Locating your home in the correct directions to make better use of the sun and shade on your property.

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

That depends.

As you can see, there are many factors, especially if you’re planning on working with an energy efficient house design. But let’s get as concrete as possible. A rough square footage cost has a wide range: you can expect to see $430 per square foot and up.

Because everyone has such different needs and preferences in the world of custom home building, the sq. ft. number can be very deceptive and is not always not accurate. Instead, it’s best to think about long-term comfort.

If you’re going to be in your energy efficient house for years to come, where do you want to be twenty years from now? You likely don’t want to feel like you have to go out and get a job just to support your home.
Do you want to leave less of a carbon footprint?
Suppose you put $50k into making your home more energy efficient. Will you be able to sell it for that much more?
If you decide to install solar panels, in 12-15 years time, will you have been able to pay back the cost of the solar panels?
Do you want to be more off-grid?

These are all important questions to ask when considering building an energy-efficient home.

Other Factors Affecting Building Cost

Building a custom home can be a complex and expensive process. For example, exterior walls with multiple corners and build-outs demand more materials and labor compared to simpler, flat walls, ultimately impacting the overall cost of constructing a home. Besides the considerations we’ve already discussed, there are several other factors that can affect the final cost of your dream home. Understanding these factors can help you make informed decisions and save money.

Land Cost: Choosing Your Spot

The cost of land can vary significantly depending on the location, size, and zoning regulations. In British Columbia, the average cost of land can range from $200,000 to over $1 million. When choosing a spot, consider factors such as proximity to schools, public transportation, and amenities. Additionally, think about the slope of the land, soil conditions, and environmental factors that may impact the building process.

Building Size and Type

The size and type of your home can also impact building expenses. Energy efficient home plans can significantly influence both the design and cost of a home, offering benefits such as passive house concepts and net zero energy efficiency. A larger home with more intricate design features will typically cost more to build. Consider the number of bedrooms, bathrooms, and living areas you need, as well as the type of materials and finishes you want to use. A single-story home may be more cost-effective than a multi-story home, but it may also require a larger footprint.

Building Costs and Expenses: Material Costs

Building a custom home involves various material costs and expenses. Every detail matters; from installing light fixtures to countertop material, there are ways to save money while enhancing your space. Knowing these costs can help you budget and make the best decisions for your new home.

Building Cost Per Square Foot: Breaking Down the Build

The cost per square foot is a common way to estimate the building cost of a home. In British Columbia, as mentioned above, the cost for custom homes is $430 sq ft and up. Additionally, consider the following (approximate) costs when estimating the building cost per square foot:

Labour costs: 30-60% of the total budget
Material costs: 30-50% of the total budget
Land cost: 10-20% of the total budget
Design and permit fees: 5-10% of the total budget
Appliances and fixtures: 5-10% of the total budget

Keep in mind that these expenses can change depending on the complexity of the design, the type of materials used, and the location of the building site. By understanding the factors that affect building cost and breaking down the costs per square foot, you can make knowledgeable decisions and create a realistic budget for your custom home.

Labour Costs and Contractor Fees

Labour costs are a significant component of the overall cost of building a house in Canada. These costs can vary depending on the location, type of construction, and the contractor’s experience. On average, labour costs can range from 30% to 60% of the total budget. It’s essential to hire experienced professionals who can manage and minimize costs.

Contractor fees are another crucial aspect to consider. Contractors typically bill between 10% to 20% of the overall construction cost as their fee. This fee can vary depending on the contractor’s experience, reputation, and the complexity of the project. It’s essential to research and compare contractors to ensure you get the best value for your money.

When hiring a contractor, it’s crucial to ask about their experience, reputation, and fees. A reputable contractor will provide you with a detailed breakdown of their costs, including labour costs, material costs, and their fee. This transparency will help you make an informed decision and avoid any surprises during the construction process.

Reaching Net Zero with Energy Efficiency

If you’re like most people, having your utility bills reduced is not a bad thing. But did you know that by 2032, every new home has to be Net Zero?

The truth is, the cost of housing is not going down. Thankfully, choosing energy efficient house plans is not only more sustainable environmentally, but actually becomes less expensive for you 5-10 years from now. When you decide to go with an energy efficient house design you use less plastics, batteries, fossil fuels and products. Your energy efficient house will ultimately use fewer resources and be less expensive.

Navigating Government Incentives and Regulations

The Canadian government offers various incentives and regulations to encourage energy-efficient home building. One such incentive is the Better Homes New Construction Program, which provides up to $15,000 in rebates for building energy-efficient, electric homes. The program aligns with the BC Energy Step Code and offers two pathways: add-on rebates and eligibility for homes built according to Part 9 of the BC Building Code.

Another incentive is the BC Step Code Program, which emphasizes energy efficiency and offers two compliance methods: prescriptive and performance. The performance approach mandates a specific energy performance outcome, granting designers and builders flexibility in achieving it through any construction method or material supported by software modelling and on-site testing.

It’s essential to research and understand these incentives and regulations to take advantage of the benefits they offer. Home builders can work with experienced professionals to navigate these regulations and ensure their dream home meets the required energy efficiency standards.

Additional Government Incentives for Home Builders

The Canadian government offers various incentives for home builders, including:

The First-Time Home Buyer’s Program, which provides tax relief on property transfer tax for eligible buyers.
The Home Buyers’ Amount, which allows eligible first-time home buyers to claim up to $10,000 for purchasing a qualifying home in Canada.
The Better Homes New Construction Program, which provides up to $15,000 in rebates for building energy-efficient, electric homes.
The BC Step Code Program, which emphasizes energy efficiency and offers two compliance methods: prescriptive and performance.

These incentives can help home builders save money and reduce the financial burden of building a new home. It’s essential to research and understand these incentives to take advantage of the benefits they offer.

Budgeting and Financing Your Home Build

Budgeting and financing are critical components of the home-building process. It’s essential to create a realistic budget and explore financing options to ensure your dream home becomes a reality.

When creating a budget, consider the following costs:

Land acquisition costs
Construction costs, including labour costs, material costs, and contractor fees
Permit fees and regulatory costs
Appliance and furniture costs
Landscaping and exterior finishing costs

It’s also essential to explore financing options, including:

Construction mortgages, which allow you to borrow money in increments as the home is built.
Progress draw mortgages, which provide a lump sum payment at the beginning of the project.
Energy-efficient home financing options, which offer incentives for building energy-efficient homes.

Creating a Budget for Your Home Build

Creating a budget for your home build requires careful planning and consideration. Here are some steps to follow:

Determine your budget: Decide how much you can afford to spend on your dream home.
Research costs: Research the costs of land acquisition, construction, permits, appliances, and landscaping.
Create a breakdown: Break down your budget into categories, including labour costs, material costs, and contractor fees.
Prioritize: Prioritize your spending based on your needs and wants.
Review and adjust: Review your budget regularly and adjust as needed to ensure you stay on track.

By following these steps, you can create a realistic budget and ensure your dream home becomes a reality.

Work with Someone You Can Trust

At Bercum Builders we’re here to help you bring your dream energy efficient home to life. In fact, our clients have come to expect a lot of us. And there’s a reason for that: we’re not a mainstream builder. We operate on trust. You can relax knowing we build every custom energy efficient home with the care and attention it deserves. We strive to make every single step of the building process enjoyable for you—we’re here for you.

If you can dream it, we’ll build it.

Ready to start building your dream home with Bercum Builders? Contact us today to get started.