The Sum of the Parts: The Cost of a New Home

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Here is a great article that is in October’s Avenue Magazine Calgary explaining the break down cost of building an average new home in Calgary.

Published September 27th, 2010   By Jennifer Hamilton

People are always talking about the price of houses, but rarely do we hear how this price is arrived at. Here we shed some light on housing prices by looking at the costs of the individual elements required to build a new home in a new development. In this case, we looked at an 1,800-square-foot home with two and a half baths and a double garage on a 32-foot lot in a new community in Calgary’s suburbs.

Built into the cost of a home in a new community are such infrastructure expenses as planning and design of the community, installation of utilities like water, sanitation, electric and gas, as well as roads inside the community and landscaping of parks and fencing.

Drawings, architectural controls and building permits $5,890 1.6
Utilities, gas line, equipment rentals, waste and recycling $2,775 0.7
Labour $83,770 22.1
Material $68,540 18.1
Sales commission, warranty, service and interest $12,125 3.2
Average lot cost at $4,400 per foot $140,800 37.1
Development company overhead $30,944 8.2
Profit $21,320 5.6
GST (net after rebates) $12,899 3.4

Grand total $379,063
Source: Jay Westman of Jayman Home