Your current home just isn't working out anymore. Maybe it's too small, too far away from work, or not in your preferred school district. Whatever the reason, you know it's time for a change, and you're considering building a new home in New Jersey. After spending more than 30 years building homes and communities, we know that the first question most prospective home buyers ask is, "how much does a house cost?".
How Much Does it Cost to Build a House in New Jersey?
With less available land and a higher population density, the cost of building a house in NJ is higher compared to other regions. It costs between $250 and $650 per square foot to build a house in New Jersey, depending on your features and finishes.
Factor in that houses in NJ are generally on the smaller side, and the cost to build a home in NJ comes out between $500,000 and $1.3 million plus for a home under 2,000 square feet.
Is it Cheaper to Build or Buy a House?
Building a house from scratch is typically more expensive than buying a prebuilt - or new-construction home.
When building new, you have a ton of extra expenses that aren't included in the $500,000 plus estimate we came up with above. You have to buy land, which can be pretty costly in a small state like NJ. You also have to pay a contractor to prepare the property for construction — that could include leveling the land, installing a septic tank, drilling a well, etc. — invest in design services, and finance construction.
The land cost is included with a prebuilt house, and you don't need to pay for extra services. Sure, there are closing costs you need to consider, but those are menial compared to the home's overall price.
However, you should be aware of the difference between buying a brand-new prebuilt house and an older home. Older homes are likely to need repairs — maybe even remodeling — to be suitable for modern life; this can add significantly to your total costs. For this reason, it's usually best to invest in a brand-new prebuilt new home, which generally comes with builder warranties.
Home Construction Costs to Build a House in NJ
The answer to "How much to build a house in NJ?" is a little complicated. Prices vary depending on the community, square footage, floor plan, features, and finishes. Whether you build a home because you want to customize it or buy new for convenience and cleanliness, we encourage potential homeowners to look at all the factors that influence new home prices. Here are a few things you'll want to remember when preparing your budget.
Location and Lot Size
Before taking any other steps to build a house in NJ, you must find land first.
As mentioned, the lot you choose affects the price of your home. According to an NAHB survey, land accounts for 21.5% of total new home construction. Smaller lots obviously come with less expensive price tags, but the size isn't the only factor in price.
Do you prefer a backyard that doesn't back up to your neighbor's yard? You'll pay more for lots that border wooded areas or offer more privacy. A fence may offer a less expensive alternative if you're concerned about privacy but don't want to pay extra for a more private lot.
Although not technically part of your home's price, closing costs increase the money you'll need to bring to the table if you want to buy a new house. According to Zillow, the fees generally range from two to five percent of the home's price. Incentives offered by your builder may reduce your closing costs in some cases.
Do you know what your builder's landscaping package includes? New construction homes usually come with a basic landscaping package that may consist of sod, a few shrubs, and perhaps several small trees. You'll pay more if you want additional trees or shrubs or prefer more mature trees. Adding large decks, sun porches, screened porches, or hot tubs to the rear of your home will also increase your costs.
New Construction Homes in Northern NJ
Despite being the more costly and complicated option, many homeowners like building new because it allows them to customize the house to their needs and tastes.
However, most homeowners don't realize that they can accomplish the same effect for much less investment (time and money) by working with a builder like Country Classics.
Take our Frenchtown community, for example. While new homeowners move into a set floor plan created by our expert designers, they have the power to make selections on the products, materials, and finishes within their new home. We invite our homeowners into our design studio to look at samples of countertops, flooring, cabinets, lighting, and more so they can pick the perfect look for their space. Ready to experience the joy of customization and the thrill of a new home for yourself? Reach out to us here!