While buying a house may appeal to some, others may prefer to build from scratch because of its benefits. If you’re considering building a house, especially in New Jersey, you may need to find out how much it costs. So how much does it cost to build a house in New Jersey?
The cost of building a house in New Jersey ranges from $600,000 to $1,000,000. This covers building expenses like labor, subcontractors, permits, and materials, among several others. Paying less or more than this stated cost depends on the type of house and the level of sophistication you want.
Whatever the case, you should know that many things determine the cost of building a home in New Jersey or anywhere else in the US. As a result, we’ll discuss some of them, especially how they influence the cost.
Building Cost Per Square Foot in New Jersey
Determining the precise cost of building a house anywhere is daunting. However, an effective way to get a close estimate is to explore the cost per square foot. As far as New Jersey is concerned, the cost of building a house per square foot is between $175 and $500. So given the provision of New Jersey Use and Occupancy of Space rules which states that the minimum square footage of a dwelling unit should be 150 square feet of flooring space for the first occupant and an additional 100 square feet for an additional occupant, the cost of building a house with 2,500 sq. ft will be between $437,500 and $1,250,000.
You can get a more precise estimate when you determine the size of your house. But as stated earlier, this cost isn’t static. Instead, various factors influence it, making it either lesser or more than what’s estimated per square footage.
Factors that Influence the Cost of Building a House in New Jersey
The following are some of the factors that affect the cost of building a house in New Jersey:
- The Size and the Structure of the House
One common thing among several houses is the difference in their sizes and structures. In New Jersey, you can have different architectural designs ranging from ranch style to Queen Anne style, Victorian style, Greek Revival, Georgian style, American Foursquare, contemporary style, etc. These designs and structures can either be big, small, or medium, depending on your wishes.
Nevertheless, no matter the size and design you opt for, the fact remains that your selection will reflect the cost of building the house. The bigger the house, the more it costs because you’ll use more material, require more labor, and take more time than a smaller house.
The area you get your lot in New Jersey also determines the cost of building a house. The reasons for this aren’t far-fetched. First is demand and supply. It’s typical that when you’re building in a popular location, the cost goes higher because there’s more demand for labor and materials. And the cost is lesser around unpopular locations with low demand for labor and materials.
Secondly, every location has a specific sales tax. For instance, the New Jersey sales tax is 6.625% which is higher than other places in the US. The implication is that contractors are mandated by law to pay sales tax on materials they purchase for a construction. And that also affects the cost of building the house.
- Quality of the Finish
While some people may prefer regular or standard finishes, others may want something more exquisite and luxurious. As you’re aware, the quality of these types of finishes differs, and so do their prices. Meaning that the higher the quality of the finish, the higher the build cost.
If you don’t create a strict budget around this, you’ll likely spend more than you imagined. However, you can have a custom quality finish that’s neither ordinary nor high-end by consulting your contractor before purchasing materials for the finishes. Regardless of what you settle for, the quality of the finish chosen also affects the cost of building a house.
- Land Characteristics
Many people aren’t aware of this, but the characteristics of the land you’re building on significantly affect the overall cost of construction. Sloppy land will cost more because you’ll have to grade, dig a deep foundation, and retain walls that hold the foundation, each of which carries a specific cost. You may not have to incur more costs if the land terrain you’re building on is balanced.
The quality of the building contractor you choose for the house also affects the overall cost. While notable construction companies give premium prices slightly over the top for their services, less popular contractors charge less. However, construction charges shouldn’t be the reason for selecting a contractor. Rather, it should be by the quality of their services.
Is it Cheaper to Build a House or Buy one in New Jersey?
It’s cheaper to buy a house than to build it anywhere in the US, including New Jersey. The choice depends on you and what you want, but you should know that homeowners of new homes avoid high maintenance expenses and repair costs.
What’s the Duration for Building a House in New Jersey?
The duration for building a house in New Jersey is between 6 and 16 months. But this depends on the weather, the complexity of the house plan, size, and the time construction started. You must ensure you don’t stay longer than the project is supposed to take to avoid incurring the indirect cost.
Can I be My House Contractor in New Jersey?
Being a building contractor in New Jersey requires a license issued by the state. It takes some time to acquire this license and involves several processes. But first, you’ll have to register with the New Jersey Division of Consumer Affairs.
Building a house is slightly on the upside of the budget, no matter how small the size and structure are. However, you can explore cheaper ways of building it without unnecessarily straining your budget.