The Top 5 Expenses When Building A Home In New Jersey
Mike Sweebe • Dec 06, 2023

Building your dream home in New Jersey is an exciting journey, but also expensive. For many, building a home will be the most money they have ever spent.


This can be scary. And sometimes the costs can be unexpected, which makes it scarier.


It's best to understand the costs involved in the project before starting, to avoid any surprises along the way. After all, you want your custom home in New Jersey to reflect your unique style and cater to your specific needs. 


If you’ve ever found yourself asking: “What is the most expensive part of building a home?” — our team is here to offer our insights!

Cost 1: Quality and Quantity

what is the most expensive part of building a house

When building your dream home, quality and quantity can play the biggest role in determining your expenses. 


So, what do we mean by this? There are two main categories that fall under this.


Size and scope:


The size and scope of your project is one of the baselines in determining the cost of your New Jersey home build or addition. 


From framing and roofing to plumbing and HVAC systems — the bigger the home, the more materials and labor you'll need. 


But don’t worry, once you’re aware of the costs to look out for—and with a good architect at your side—it’ll be easier to keep them in check.


Tip: Let's not forget that whether you’re building up or out can also impact your final costs. Building upward can save you money compared to digging out a foundation to build outward, horizontally, especially if you already have an existing home — but it’s also important not to compromise on the type of home you really need for the sake of budget. This is why having an experienced architect on hand will help provide clarity on what you truly need, for a fair price!


Construction type:


The type of construction you choose can also have an impact on your budget. 


Stick framing is often considered ‘budget-friendly,’ while masonry and steel can cost a bit more due to their skilled labor and heavy equipment requirements. 


However, it’s important to always discuss with your architect the best construction type for your custom home build before setting your sights on one option. Delivering the type of home you want is where the true value of your home will come in, and an expert architect in New Jersey will be happy to discuss this further.

Cost 2: Foundation and Excavation

Ready to dig a little deeper into your budget? 


Your home's foundation and excavation work are the backbone of a project. That said, there’s a lot to consider with foundation and excavation costs.

When you are calculating foundation and excavation costs, you need to consider two main things: where you are building and the foundation type you select. 


Where you build/soil type


Hilly Areas, which indicate underlying rock formations, such as Cedar Grove, NJ, can make excavation expensive due to terrain and soil type.


In areas with shallow topsoil you will need to dig through bedrock, which is way slower and more expensive than digging through softer types of soil.

 

Really soft soil types, like sand, will also make things more difficult and expensive. Typically softer soils will need specific foundations, which increases the cost. We’ll go over the foundation types in the next section.


To manage your excavation and foundation costs, we recommend you:

  • Conduct a thorough site analysis before building commences
  • Understand the geographical characteristics of the land your team will be working on
  • Work with a local architect who is familiar with the challenges of your terrain


Flooding can also be a concern in some parts of New Jersey, which is why some homeowners opt for lowering costs through installation of a crawl space instead of a full basement.


Foundation type

what is the most expensive part of building a house

There are many different types of foundations and they all have different benefits and drawbacks. They all also have different price points. 


Sometimes you aren’t able to choose one of the cheaper options.


In areas where the soil is really sandy you probably have to go with a floating slab foundation, where the slab essentially floats on top of the sandy soil. If your planned home is too heavy and will push the slab down, you have to install pylons — tall pillars that you drive into the ground. And that gets really expensive.

- Mike Sweebe, Lead Architect & Owner at Sweebe Architecture

Full basement foundations (especially in New Jersey) may also demand additional materials and labor costs — but if a homeowner knows that a full basement would add to their quality of life, that’s a cost they’ll need to be willing to accept.


Tip: From understanding soil types to optimizing every square foot, partnering with a local and experienced architect will help keep your home and construction costs within budget!


Cost 3: Plumbing

Hiring skilled professionals is crucial to ensuring everything in your new home flows, especially when it comes to plumbing.


In some parts of New Jersey, plumbers may also double as heating specialists or experts with steam or hydronic heating systems, as both require extensive pipe work.


However, even without these additional skills, it’s important to remember that plumbing costs include more than just fitting pipes and installing bathrooms. 


Your plumbing budget will also need to account for:

  • Equipment purchasing
  • Fixtures
  • Radiators
  • Labor costs
  • Unforeseen challenges / project amendments


Tip: An experienced architect might be familiar with the basics of contract work, such as plumbing, ventilation, or even your new electrical system. However, they must work closely with your other contractors as early as possible to anticipate potential challenges and save money later. From discussing the pros and cons of cheaper HVAC systems to ensuring electrical hook ups are in the right place, collaboration at the design stage is essential.


Cost 4: Finishes

Choosing what finishes you want for your custom home can be an exciting part of the design phase, but it can also be overwhelming. 


With so much choice and variation, it’s vital to have a professional eye on board to help you select the right finishes for your home…and for your budget!


What are finishes? In the interior of a home, this includes flooring, trim work, tile, built-in millwork / cabinets, counter tops, wallpaper, hardware, plumbing fixtures, and lighting fixtures. On the exterior of a home, finishes would include roofing, trim, and siding.

the difference between what is a fixture and what isn't a fixture.

Roofing:

Of all the costs associated with your home, roofing might seem like a pretty set cost. But when we talk about roof materials such as asphalt, metal, or natural slate — this choice alone can significantly impact your costs. 


And let's not forget the size and design of your roof. A more complex roofline or unique features can affect the overall expenses too.


Flooring:

Whether you choose hardwood, tile, carpet, or laminate — each option will come with its pros and cons…including cost! 


To ensure your flooring costs don’t overrun, we recommend:

  • Speaking with your architect about the size of your space and the intricacy of installation before talking to a flooring specialist
  • Ensuring your design team is making all the right provisions in terms of preparing the ground for your ideal flooring
  • Discussing which types of flooring might suit your needs both functionally and aesthetically
  • Asking if your architect also offers interior design services to help streamline/integrate your costs more effectively


Custom interior finishes and additions:

Custom finishes can add a lot to your home, but they might also add to your bill. 


Work with your architect and other contractors to choose finishes that align with your vision and budget from the start — they should know how far you’re willing to stretch your budget and where the line needs to be drawn.


Some interior finishes and additions that commonly cause budgets to expand include:

  • Custom cabinetry
  • Luxury interior finishing details, e.g. a kitchen countertop
  • Lighting design
  • Built-in features, e.g. storage and alcoves


Cost 5: Windows

Windows are more than just glass; they're a vital architectural feature that enhances your home's appearance and functionality — or at least they should be! 


While low-quality windows and doors can be a tempting option for those on a budget, long-lasting durability and top-tier functionality are always the best option for your custom home build.


For example, vinyl windows might be tempting for their low maintenance and cost. However, they may lose their charm over time due to expanding and contracting with temperature changes. Wood windows, on the other hand, offer durability and insulation — but may also incur additional costs in the future for maintenance.

Which option you choose will come down to your needs as a homeowner, but for those looking for better quality and the possibility of custom shapes and sizes, wood is definitely the way to go! 


Tip: For many of our New Jersey clients, custom windows have made all the difference to their enjoyment of their final design. View our portfolio here to gain a better understanding of the type of residential projects we work on.


Ensure your custom build or addition in New Jersey aligns with your budget

what is the most expensive part of building a house

Building a custom home in New Jersey can be daunting, but the process can be much easier once you know what to expect. 


From knowing
the main costs to understanding the importance of communicating effectively with your design team, we hope this article has provided clarity and confidence.

At Sweebe Architecture, we provide full-service architectural and interior design services for major home renovations and remodels, new home builds, and other related projects in the New Jersey area. 


Because of this, we have extensive knowledge and expertise in navigating the local building process and regulations, as well as in managing costs effectively. 


Take control of your new dream home with a team that’s dedicated to understanding your vision and needs, and will make sure you understand the costs every step of the way.. 


From concept to completion, we build homes that bring families closer together. To learn more about our services, book a discovery meeting today.


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