What Is the Average Cost to Build or Remodel a Home in New Jersey?
Jan 19, 2023

There’s no doubt that when it comes to the average cost to build a house in New Jersey, there’s a lot to consider. For a new build (or a remodel), knowing how much it will cost can make all the difference when deciding what you want done.


However, as you might already know, changing labor and material prices are causing havoc for families building or renovating homes in NJ. With your general contractor often unable to provide an accurate cost estimate, your cost per square foot can creep up before you know it! 


This is why as an architecture and interior design firm, we’ve made it our mission to help homeowners like you better understand your costs and how to manage your budget.


In this blog, we hope to not only give you a better insight into the average cost to build a home in NJ, we also want to help you create a better path for your project and save money in the process!


The topics we’ll be covering include:



  • The average cost to build a house in NJ 
  • Building material costs (including overlooked costs)
  • Labor costs
  • How to minimize home building-related costs 
  • Will construction costs improve? (Our expert opinion!)
  • How construction costs should be approached


With the right knowledge about the cost and fees associated with your new house, we hope it will become easier to make the right decision for your future and get more value for your money.


The Cost to Build a House in NJ is Variable – Making It Hard

to Estimate

Over the past few years, construction prices have risen due to demand from an expanding population and increasing consumer demand for residential homes.


That said, the average cost of building a house in New Jersey will still very much depend on the size and type of your home construction. 


Some sources make claims based on the national average, like, “You can build a 2800-square-foot home for about $468,318 in the US if you hire and manage your vendors well”. We feel there are too many variables for these estimates to be in any way accurate for your NJ build.


While it’s true that construction prices vary depending on your location and vendors, it can also depend on:


  • Market price of materials
  • Quality of land
  • Equipment costs
  • Design specifications
  • Supply chain management
  • Location of suppliers


Ultimately, your home construction cost in NJ will come down to your project expectations and the value you place on certain aspects of your build. This is why it's advised to speak with an architect before determining a final (and realistic!) budget for your residential build.


Factors That Impact the Cost to Build in New Jersey

Nobody likes surprises when it comes to their home, right? This is why at Sweebe Architecture, we’ll always provide you with a rough construction cost estimate, even before you hire us. The estimates we provide up-front are partly based on general per-square-foot dollar figures and partly according to the type of improvements you are looking to take on; whether you are looking to improve and existing full bathroom or build a new kitchen in and an addition.


To fully avoid surprises during the technical drawing phase of architectural services, or especially during the construction phase itself, it is absolutely critical that you define as thoroughly as possible for yourself what you are looking for and gaining an understanding of the general costs to do it.


The Cost of Building a New House in NJ | Sweebe Architecture

For extensions (either horizontally outward or vertically upward), or for building a new house completely, the cost tends to be around $360/sf (excluding the work/materials to finish the spaces). 


For the type of home remodels we carry out in New Jersey, including work/materials to finish the spaces, the cost will be around $550/sf. We’ll always do our best to effectively communicate to the project owner costs to build AND costs to finish the spaces of a project, well in advance of finalizing the design. This is something we feel is important for maintaining control of your costs.


Even for larger homes, when we manage your floor plan and how every aspect of your design should look, it becomes easier to deliver a more accurate estimate of cost for your entire project early on. Construction projects can be unpredictable and at Sweebe Architecture we like to think we have a pretty good handle on how things work!


For finishing a space, also called the “interior package”, the per-square-foot cost will be around $190/sf. According to our clients though, the peace of mind this service provides is priceless.


Just some of what our interior packages cover:


  • Floor, wall, and ceiling finishes
  • Built-ins (such as cabinetry, shelving, closets, nooks, and cubbies)
  • Trim for wall crown, base, doors, windows, etc.
  • Fixtures (e.g., plumbing and lighting fixtures)


With the cost of solid wood cabinets and even metal fixtures having risen in price, our interior packages are rising in popularity. This is because when your building and interior costs are being handled by the same team, your costs can be managed more effectively. 


Having your own home is a huge achievement and we want you to have the best finishes you can for the best price. This is something our interiors package can help you achieve.


The bottom line is, before deciding to build a new house in New Jersey, it’s always good to know what you’re signing up for. 


With a better understanding of the average cost to build a house in NJ and the various building materials and labor costs you may encounter — you’ll be better equipped to make an informed decision about whether or not to build.


Overlooked Building Materials Costs in New Jersey

If you’re already looking into home building projects in the New Jersey area, you’ll likely be aware of the fluctuating costs of building materials. 


While most people know they need to account for the cost of raw materials such as concrete, wood, and metal when building a house in New Jersey, some finer details surrounding building material costs can sometimes be overlooked.



So, what building costs are important to not overlook during the planning process? Just some of the less obvious building material costs you’ll need to factor in for your home construction include:


1. Windows and Doors

The Cost of Building a New House in NJ | Sweebe Architecture

Windows are an important and often costly item to purchase when building a house in New Jersey. The cost also tends to vary significantly depending on your type of design and build. For example, the durability of glass required for windows in residential projects will depend on the size, operable style, and location of your windows. It will also depend on factors such as energy efficiency and safety. 


Doors are another essential part of not only your home’s aesthetic, but also how your home flows. Practically and aesthetically, having your door direction, operable style, maneuvering clearances around and through the door, and door size decided early can help avoid costly changes later on.


To reduce the costs associated with your build, having these details known as early as possible can make a big difference to your costs. There really is nothing worse than spending hours on a design only for the direction of a door to change and alter your entire plan, so get on top of these decisions early!


Tip: When it comes to windows and doors, it’s also essential to consider costs associated with effective security and any hardware needed, e.g., hinges, locksets, or serviceability.

2. Paint and Wall Coverings

The Cost of Building a New House in NJ | Sweebe Architecture

Paint and wall coverings are often-overlooked expenses when building or remodeling a house. The color, texture, patterns on your walls can completely alter the feel of your home. This is why to avoid additional costs associated with design changes, it’s usually a good idea to ask an interior designer to talk you through the options that will work best for you.


If you decide to handle the paint and wall covering selections yourself, our advice is to always choose colors according to your family's preferences and make sure to buy quality paint from a reputable supplier that won’t fade or chip easily.


3. Flooring

The Cost of Building a New House in NJ | Sweebe Architecture

You’d be surprised how many homeowners forget to factor flooring costs into their initial budget. While flooring might feel like one of the final steps in your home design project, budget-wise (and in terms of delivery times), it’s something you need to consider from the start! 


Flooring should always match your home's interior design style, as well as how you want your new home to function. With the cost to build a home in NJ also now dependent on the availability of materials — this is just one other reason to get your order in early!


Tip: Sustainable flooring is currently having a moment. Why not ask your interior designer to discuss options that might work for your home?


Additional Costs When Remodeling Your Home

The Cost of Building a New House in NJ | Sweebe Architecture

When it comes to remodeling your home, hidden costs are to be expected (though at Sweebe Architecture, good communication, planning, and project management helps us avoid unforeseen costs as much as possible!). On some occasions though, last-minute changes decided by the client will mean additional costs fall outside of our control.

A lot of our clients, while having brand new custom windows installed in their home addition, might say, “If we have new windows here, why are we keeping our old, bad windows in the rest of our house? Then suddenly, the scope of their project has evolved overnight.

- Michael Sweebe, Owner and Director at Sweebe Architecture

For remodels in New Jersey, services such as re-roofing, waterproofing, re-siding, window replacement, and even upgrading electrics and other major systems can have an enormous impact on your budget. These upgrades can add a potential 30% to the construction budget. 


Of course, a lot of these add-on services can be moved to a future phase of work, but as mentioned above, new construction projects can actually trigger many upgrades in your home.


Because all of Sweebe’s architects and designers are seasoned professionals, we’ll always be able to adapt to change. However, in terms of your budget (especially if you’re using multiple contractors!), it’s always best to consider these changes sooner rather than later.


Outside of these fees, homeowners will also need to consider additional costs beyond the scope of what an architect can “officially” help with. This can include anything from connecting your home to an off site sewage system or clearing the land before a build. 


Choosing a local architecture firm in the New Jersey area will help you get better guidance on these local costs — but as always, carry out your own research too!


Bonus insight: While town approval/permit fees will depend on your project size, for a project that adds 50% space to an existing house, such fees can be a few thousand dollars. This is why speaking with your local building department can be helpful.



Fees for extra consultants in New Jersey may also be needed. This might include:


  • A civil engineer to handle storm water management
  • A landscape architect
  • A pool consultant
  • An attorney


The Cost of Labor in New Jersey


For a new construction home in New Jersey, it’s important to remember that your contractors don’t want to be charging you a premium. Regardless of your square footage, your contractor’s costs and expenses have risen too — an adjustment for everyone in the industry!


While material costs are currently fairly even throughout NJ and nationwide, be aware that there can be a difference in labor and installation costs across metropolitan and rural areas.


To get the most value from the labor your hire, regardless of where your custom home is located, you should:


  • Ensure your project schedule is realistic
  • Only hire reputable contractors you’ve researched thoroughly
  • Look at examples of your contractor’s previous work to ensure they align with your project type and space
  • Be conscious of your contractor’s higher expenses and trust that good partners will always try to optimize your costs


When estimating the cost of building a house in NJ, there’ll always be an ‘optimistic’ or 'best' estimate for labor costs and then there’ll be ‘reality’. At Sweebe Architecture, ‘reality’ is what we focus on, ensuring you’re not landed with any unwanted surprises after construction has begun!

- Michael Sweebe, Owner and Director at Sweebe Architecture

At Sweebe Architecture, we also engage project owners and ensure every detail of your home build is communicated throughout all drawing, planning and development phases. We believe this is how we manage to keep our projects on track, and your budget within the intended range.


Relative to the cost of living, building a house has always been a major investment for every project owner. That said, with prices on the rise, we can confidently say that at Sweebe Architecture, no cost is ever unjustified. 


Is the Cost to Build in New Jersey Going to Go Down?


Even though it’s our expert opinion that the cost to build in New Jersey is not going to go down any time soon, we are seeing contractors becoming more resourceful with the materials they use, while material vendors have leveled-off their material prices and have started to improve their material delivery times (lead times). 


With sustainability having emerged as a key trend across the construction and interior design sectors, we’re seeing a significant reduction in waste and more innovative use of natural materials. 


With more of the outside now entering into our homes and organic materials becoming more common, clients are challenging their contractors to reexamine the materials they use and deliver better value for money all round.


Land Is an Extra Expense


One of the biggest factors impacting construction costs in New Jersey is the cost of the property on which a project is built; the land. The cost of land is certainly a factor when your project is to build a new house on a new piece of property. Other times, you already own the property where the project is slated to be built; and in those cases, the purchase price of your current home was a significant factor upon your family's budget. At Sweebe Architecture, we discuss with our clients costs they have already incurred, purchasing their home property and how the cost of a remodel or addition project contributes to adjusted end value of the property. This is always a huge consideration when the homeowner plans to sell their home after the project is completed; they pay close attention to the return on investment (ROI) of this scenario.


That said, with many communities in NJ still offering value for money, there’s some great investment opportunities for both new builds and existing homes.

   

Even though it has been widely reported that New Jersey land values are some of the highest in the nation, a diverse range of land prices does in fact exist in New Jersey. With lot prices ranging from under $100,000 to more than half a million, the price you pay for your lot will depend on your preference for where in NJ you want to live.


With our clients relocating to both up-and-coming areas of NJ and more extensively-developed communities (such as Montclair, Verona, Wayne), there’s no shortage of home construction and renovation projects in New Jersey. Wherever in northern New Jersey you decide to build, as always, our team will be happy to help!


Tip: Looking to build a custom home with a minimum square footage? It’s always a good idea to speak with several realtors before committing to a lot. Realtors in NJ will all have different ideas about which communities will likely increase in popularity so it’s important to do your research and choose a lot that feels right for you. 


Get More Bang for Your Buck When Building or Remodeling a New Jersey Home


Overall budget is one of the first things we discuss with our NJ clients at Sweebe Architecture. Especially for single family homes or those wanting to create larger homes, we want to ensure you have a realistic spend in mind from the start.


While it’s sometimes possible to downgrade material quality or move from a higher-end specification to a mid- or lower-range specification, most contractors will not take kindly to these on-the-fly requests during construction. 


As your contractor’s fees are often based on a percentage of the construction cost, changing materials during a project will alter the entire scope of the project and damage your working relationship. Sure, in most cases contractors will be happy to increase their fees thorugh change orders, but that comes with an added strain to the contractor's labor costs and in keeping with a streamlined construction schedule.


This is why to keep your home building costs on track, utilizing the services of a professional architect and interior design service can help you maintain control of your entire project. With the full scope of your project in the hands of one professional team, you can spend your money more wisely and maximize your value per square foot.


Additionally, to build a house in New Jersey as cost-effectively as possible, it’s good to consider:


  • Maintaining good (and transparent) communication with your contractors
  • Ensuring your project is being managed effectively with regular check-ins
  • Factoring in the possibility that things might change
  • Trusting the professionals you’ve hired to advise you on a realistic budget for the type of home you want to create


As mentioned, when building a home in New Jersey, you’ll also need to consider home construction costs that quickly add up before you even get started.


A good architecture firm from your area will be best positioned to offer professional insights into additional fees they regularly come across.


The more you know before your build commences, the more prepared you can be for the final bill!


Working With Sweebe Architecture Takes the Stress Out, But Leaves the Fun

The Cost of Building a New House in NJ | Sweebe Architecture

In this blog, we’ve highlighted some key costs you should be aware of when building a New Jersey home. You should now understand why the cost to build a home in NJ can be so difficult to estimate AND have a few numbers in mind to help you get started.


To help keep your expectations and budget on track, we can take control of your entire architecture and interior design needs. 


With better control over your budget and the ability to adapt to unforeseen circumstances, we can help keep your costs in line and your shoulders relaxed.


If you’d like to speak with us about how we can help you enjoy your new home project , feel free to reach out and discuss your options with us.

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