How much does it cost to build a new home in Los Angeles? As a vacant land specialist in the greater Los Angeles area for the past 28+ years, this question is often posed to me.

How much money does it take to build in LA

As you may expect, with the devastations of the recent Palisades and Eaton fires, I am asked this question even more often than before: How much does it cost to build a house in Los Angeles? The answer is not as simple as one might expect, there are quite a few variables that need to be factored in. For example, a great deal depends on the terrain, while location makes a big difference as well. These factors are the main reason I get asked, from developers, investors and potential land buyers who want to build as to how much does it cost to build a home in Los Angeles and vicinity?

Terrain makes the cost of building a huge factor

As most everyone knows, Los Angeles has always been one of the most expensive places to live, hence building a house would be no different. Over my years here and in real estate, I’ve watched as the price of construction costs continued to rise thus further adding to the lack of affordability to build a home. Add to that the increase of interest rates has not helped the situation either. Five years ago, the Pandemic Shutdown negatively impacted not only the income of potential buyers, while further adding to the increased costs of everything else. For example, groceries alone have increased by 28% since 2019. It is no wonder that the cost of building a home has also increased along with existing home prices.

The more luxurious the inside construction the more money it takes to build

As I mentioned above, terrain plays a large role in our scenario. So, let’s start with flat land.

To build a home in Los Angeles on flat land generally would cost at the minimum $250 per square foot; nothing fancy or extravagant, just the basics. As to what I would call a mid-range priced home, the cost would be closer to $350 per square foot. For a luxury customized a/k/a high-end build would cost about $450 per square foot or more.

Cost of construction is most reasonable on flat land

The question of course is: what does this include? The dollar per square foot consists of a number of fees, first and foremost building permits and architectural fees. We then need to add in the costs for running utilities to the home, foundations, framing, exterior finishes, roofing and plumbing. Let’s not forget to add to that interior finishes where the costs could run from low to average to very expensive (particularly if you go with custom finishes) particularly in the kitchen and bathrooms. Obviously, the more luxurious one makes the kitchen and bathrooms the higher the price per square foot becomes. The good news in all of this is that buying land and building a home from scratch is still less expensive than buying a finished home; plus the house could be designed to your exact tastes and needs.

To reiterate, I have only addressed building a home on flat lots. To build a home on a hillside means the costs are much higher. That is something I will address in a future post.

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If you are looking for a pet friendly Beverly Hills Realtor who can handle the most challenging properties that no one else could, please reach out to me directly. If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties or vacant land in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu reach out to me at 310.486.1002 (m) or homes@endrebarath.com or visit my website at https://www.endrebarath.com.