How much does it cost to build a custom home in Florida?
It’s no secret that Florida is one of the most popular states in the nation to call home. In fact, late last year the US Census declared it to be the fastest-growing state in the entire nation. While people first started coming to the state in large numbers in the 1950s, the growth has only continued, year-over-year. Between 2021 and 2022, Florida saw nearly a two-percent increase in its population, as more and more people came to the area in search of blue skies and warmer temperatures, as well as the opportunity to enjoy a true Florida lifestyle, with beaches, golf courses, boating, and more easily within reach.
If you’ve always dreamed of owning a Florida custom home, but you’ve perhaps been a little worried about the cost, you may find that Florida Custom Homes aren’t necessarily out of reach at all. There are plenty of options out there to fit a variety of budgets, whether you’re hoping for a new home in Southwest Florida, South Florida, Northern Florida, Central Florida, in the Panhandle, or up and down either coast. Florida custom home builders are available to help work within your budget, while also delivering the home you’ve always wanted and desired. So, what should you expect pricewise when it comes to building a custom home in Florida?
The cost of buying a home in Florida
To understand that it’s best to look at some of the averages when it comes to Florida homes for sale right now. By starting out with the average cost of a home in the state, then narrowing it down to the area in Florida in which you want to live, you’re better able to see a good estimate of what a custom home may cost in the state.
In mid 2023, Florida Realtors put out an updated housing report, showing that single-family home sales were holding relatively steady, year-over-year. The median sale price for a single-family home in Florida was nearly $420,000 in May 2023, which was a zero percent change from the previous year. The average sale price, statewide for May 2023, was close to $602,000, which again, was almost identical to the average sale price from May 2022.
Like almost every other state in the nation, however, prices do vary depending on location. There are Florida custom homes close to the beach and overlooking water views, but there are also homes that overlook the local golf course, ones that are situated in amenity-rich neighborhoods, and homes that set in rural sections of the state. While you can start with statewide averages, you then need to focus in on the area of the state you want, the community, or the neighborhood where you hope to build a custom home in Florida. This will likely impact the price you pay. You may end up with a location that’s lower than the average, right on par, or even higher than the statewide average.
Generally, home prices do tend to get higher when you choose to build closer to the coast. Lots close to the beach, or overlooking water views do tend to be more expensive than locations that are in-land. Remember, though, there are also plenty of rivers and lakes that offer water views and water access in Florida. You will probably also find that prices differ within communities and neighborhoods, too. If you want to build in a place that allows you to virtually boat right up to your own backyard, you’re probably looking at some increased costs. A lot of people want direct Gulf access in Florida, especially if they have their own boat, or they’re planning to have a boat in the future.
Apart from places like Orlando, which naturally commands higher prices because its homes are close to the major theme parks, you may want to take your search to Central Florida if you’re hoping to get a better price, but don’t mind a bit of a drive to get to area beaches and the waterfront. If you have your heart set on a certain location, such as the Gulf Coast, you can also try searching in areas that are nearby, but not necessarily the highest priced. This is where you’ll probably find a better deal if you want to build a custom home.
Depending on which location you choose, you may find that you’re paying more than you expected to, even when you don’t opt for what you thought was a high-priced location. Places like Cape Coral, in particular, have seen home prices go up in recent years. The city often ranks high in terms of the most desirable places in Florida to live, and that’s helping draw even more residents to the area. In fact, even the US Census Bureau considers Cape Coral one of the fastest-growing cities in the nation. When you compare its home prices, Florida Realtors shows a median sale price of $445,000 for a single-family home in Cape Coral-Fort Myers, as of May 2023. As you can see, that’s more than $25,000 higher than the statewide median sale price for the same time period.
On the other hand, while buying in the Cape Coral-Fort Myers market may be higher than the statewide median sale price, it’s a bit of a bargain when you compare it to Collier County, which includes Naples, Immokalee, and Marco Island. For that market, the median sale price for a single-family home in May of this year was $810,000. In terms of Miami, Fort Lauderdale, and West Palm Beach, the median sale price was $610,000. Obviously, there is a difference in where you look for a home in Florida, and that’s true for Florida custom homes for sale, too.
If you’re worried about staying under budget, you can always choose to take your search to the central part of the state. Locations, such as Sebring in South Central Florida, Ocala, which is south of Gainesville, and Homosassa Springs, which is a bit closer to the coast, all had a median sale price for May 2023 that was under $300,000. That’s something to consider if you aren’t already tied to a specific location in Florida.
How much is land in Florida?
Obviously, the location matters in terms of overall price, so how much does land cost in Florida? The same amount of land will likely vary a great deal, depending on whether you choose a location such as Miami, Cape Coral, or even a smaller community that’s more in-land and much further from the sand and water. There’s a big difference between buying land in a populated city and buying land that’s undeveloped and more rural. Even in-land property that overlooks a lake or a river can cost more than land that does not.
Beyond location, you’ll have to consider whether the land is already prepped for construction. Are there already roads leading to the main roads nearby? Does the land already have plumbing and electrical hookups, or will you need to start from scratch? All of these things will affect price. You can get an idea of how much land costs in certain areas by searching specific locations you might consider building. Your realtor can help give you an idea of the price of existing land for sale in the community you desire. If you don’t already have a specific property in mind, this will give you a rough idea of the cost of the land, but you still need to consider the costs you’ll incur with building a custom home.
How much does it cost to build?
The cost of building a custom home in Florida can also vary. Nationwide, we’ve seen construction costs increase since the beginning of the pandemic, thanks in part to the rising cost of building materials, such as lumber. Lumber prices significantly increased in recent years.
Earlier this year, Bankrate.com referenced 2022 data from HomeAdvisor, which put the average cost of building a single-family home last year at just under $285,000. Again, that was average, so some homebuyers paid in the low $100,000s, while others paid much more. For the south, the price per square foot was lower than many other parts of the country, but again, prices do vary by location even in Florida. Construction costs commonly include plumbing and sewer connections, lumber, roofing, the home’s foundation, plus heating and ducting, wiring, paint, flooring, and labor, among other things.
While the location and size of a home factor into its overall cost, so does the contractor you use. More complex home designs can also boost the overall price. Florida custom home builders can give you a more accurate estimate of what you’ll need to budget for and help prepare you for some of those costs.
How to budget for building costs
Bankrate estimates a home in the south costs about $100 per square foot. In Florida, though, it’s likely the cost could range from $100 to $200 per square foot to build a new home. Oftentimes, a custom home is on the higher end of the scale. To estimate how far your budget will stretch, use those numbers as a rough estimate to figure out how large of a custom home you can afford. Building costs aren’t just regional, though, they’re determined by the size of the home you want, and which materials your builder uses, as well.
A home’s true cost is tied to things like the exterior, the interior, the foundation, all the permits and fees that are involved, as well as outdoor features you add to the property, and even miscellaneous fees. Building costs do add up, especially if you don’t have a firm handle on your budget. For this reason, the cost to build a custom home will likely be higher than purchasing an existing home. Some estimates suggest it costs about eight percent more to build a new home rather than buying an existing one. While construction materials have gone up in price, labor is a big part of what drives construction costs. But don’t let that sway you from building the home of your dreams, because you may be able to make some adjustments that save a little money in one area, especially if you’re hoping to use the money in another area.
What are the advantages to building?
When you choose to use one of the reputable Florida custom home builders out there, you gain the advantage of ending up with the home you want, rather than just settling for what’s available on the market. With a custom home, you get to make decisions on what you want included, and what you don’t. You don’t have to pay for features that won’t work for your needs, because it is a custom home. When finished, it will be move-in ready and brand new. These are obviously advantages, because you get a modern home with what you want and need, and don’t have to make updates. When you choose Florida, you are already that much closer to major theme parks, beaches, and more, meaning you may spend less on vacation costs too, because you’re already close to what you want and need.
Why should I hire a Realtor?
A good Realtor can help lead you through the process, whether you’re buying an existing home, or you choose to have a custom home built in Florida. A qualified agent can help you narrow down the search for a new property. Finding the right lot for a new home takes a lot of research, but a trusted Realtor will already have an idea of how lots are priced in certain areas of the state, and in certain neighborhoods and communities. They’ll know where to find land to fit your needs, and they’ll help lead you to the best location for your needs. They may even know about land that hasn’t even hit the market yet.
Florida Custom Homes is a great place to start your home search, especially if you’re hoping to build a custom home in Southwest Florida. We have the access to the most updated market data and can help with the home buying and homebuilding process. We have a team of industry experts available to give you the best possible experience when it comes to building a custom home in Florida. We can connect you to Florida custom home builders who are experienced in building in the State of Florida and can work with you to create the home of your dreams.