New Jersey has experienced a significant surge in real estate activities, including buying, selling, and building, since the onset of the pandemic. With rising housing and construction costs, now seems to be an opportune moment to lock in expenses and embark on new home construction. The state, known for its diversity and proximity to New York, offers an attractive option for those seeking proximity to the city without the high living costs associated with New York State.
The average cost to build a new home in New Jersey ranges from $600,000 to $1.2 million, with $900,000 being the median for a 3,000 sq.ft. colonial using traditional construction methods. Costs vary, starting from $200,000 for a 2,000 sq.ft. modular Cape Cod-style home to $1.75 million for a 3,500 sq.ft. fully custom McMansion.
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Can I Build My Own House in New Jersey?
Yes, you have the option to build your own house in New Jersey, provided you have suitable land in your desired location. However, this endeavor requires careful consideration of time, costs, and obtaining the necessary permits.
Permits and Regulations
Securing permits is a crucial step in building your own house. Permit fees vary, often based on factors like home value or construction area. It’s important to note that permit regulations differ across New Jersey counties. Refer to your local county’s website or office for specific information on permit requirements and costs.
Cost to Build a House in New Jersey
| National Average Cost | $900,000 |
|---|---|
| Average Range | $600,000-$1,200,000 |
| Low-end | $200,000 |
| High-end | $1,750,000 |
Building Methods
Two primary construction methods, stick-building and modular building, are popular in New Jersey.
Cost per Sq.Ft. by Building Method
| House Type | Cost per Sq.Ft. (Modular) | Cost per Sq.Ft. (Stick-Built) |
|---|---|---|
| Modular | $100 – $300 | – |
| Stick-Built | $200 – $500 | – |
Cost per Square Foot
The cost per square foot varies from $100 to $500, depending on the building method and customization. The majority of homes fall within the $200 to $400 per sq.ft. range.
Cost per Sq.Ft. by Size
| Size | Cost to Build (Modular) | Cost to Build (Stick-Built) |
|---|---|---|
| 800 sq.ft. | $80K – $240K | $160K – $400K |
| 1,000 sq.ft. | $100K – $300K | $200K – $500K |
| 2,000 sq.ft. | $200K – $600K | $400K – $1M |
| 3,500 sq.ft. | $350K – $1.05M | $700K – $1.75M |
Number of Bedrooms
Homes in New Jersey vary in size and number of bedrooms.
Cost by Number of Bedrooms
| Number of Bedrooms | Cost to Build (Modular) | Cost to Build (Stick-Built) |
|---|---|---|
| 1 Bedroom | $80K – $300K | $160K – $500K |
| 3 Bedrooms | $200K – $600K | $400K – $1.5M |
| 4 Bedrooms | $300K – $1.5M | $600K – $2.5M |
Number of Stories
Homes in New Jersey come in different stories, affecting overall costs.
Cost by Number of Stories
| Number of Stories | Cost to Build (Modular) | Cost to Build (Stick-Built) |
|---|---|---|
| 1 Story | $100K – $450K | $200K – $750K |
| 2 Stories | $180K – $900K | $360K – $1.5M |
| 3 Stories | $300K – $1.5M | $600K – $2.5M |
Architectural Styles
The architectural diversity in New Jersey contributes to varying construction costs.
Cost by Architectural Style
| Style | Cost to Build (Modular) | Cost to Build (Stick-Built) |
|---|---|---|
| Tiny House | $22.5K – $200K | $50K – $400K |
| Victorian | $400K – $900K | $800K – $1.5M |
| McMansion | $400K – $900K | $800K – $1.5M |
Is It Cheaper to Build or Buy a House in New Jersey?
While purchasing an existing home is generally more cost-effective, building your own house offers the advantage of a brand-new, customized residence. The average cost to build a home in New Jersey is $376,900, but this figure can increase to $526,900 when factoring in land costs, excavations, permits, and other expenses. Building a new home takes 9 to 12 months, whereas purchasing a turnkey home in New Jersey, with a median sale price of $495,200 as of September 2023, can be completed in 1.5 to 2 months.
Home Construction Costs to Build a House in NJ
Determining the cost to build a house in New Jersey involves various factors that influence pricing. Here are key considerations for your budget:
1. Location and Lot Size
The choice of land significantly impacts home prices. Smaller lots are generally more affordable, but factors like proximity to wooded areas or privacy considerations can increase the cost. Understanding your preferences in terms of lot size and features will be essential in budget planning.
2. Closing Costs
While not directly part of the home’s price, closing costs are a vital financial aspect when buying a new house. These costs typically range from two to five percent of the home’s price. Builder incentives may offer some relief on closing costs.
3. Landscaping
Builders often provide a basic landscaping package, including sod and a few shrubs. Additional landscaping desires, such as more trees or mature plants, can increase costs. Features like large decks, sun porches, screened porches, or hot tub installations also contribute to the overall expenses.
In conclusion, the cost of building a home in New Jersey is influenced by various factors such as size, number of bedrooms, number of stories, and architectural style. As the real estate market continues to thrive, individuals looking to invest in property or build their dream homes in the Garden State should carefully consider these factors to make informed decisions.
