How Much Does It Cost to Build a House in Los Angeles?

The best answer when asked how much it costs to build a house is, “It depends”. The average cost to build a house in the USA is around $300,000 but this is really a meaningless number. To demonstrate with an absurd example, let us assume that a nice doghouse can be built for less than $100 and that a mansion will cost $5 million. The average of those two houses is $2,500,050 and this figure does not represent the true cost of either dwelling. Obviously, the cost to build a house is driven by so many factors that it makes no sense to use an average number.

So, where do you begin to get a meaningful figure as to what it costs to build a house? You start by choosing how big the house is to be and deciding if it is to be a low end pre-fab or “economy” model, an upscale house filled with luxurious features or something in between. Generally, low end houses cost about $50,000 to $200,000 to build. Mid-level houses can be built in the $200,000 to $700,000 range. Any house costing over that amount can be considered high-end except for prestigious areas like Beverly Park or Bel-Aire estates in Los Angeles where multimillion dollar dwellings are the norm.

Next, divide the two major cost drivers into subcategories. The two drivers are the materials and equipment used to build the house and the manpower needed to convert the materials into the building. The manpower costs can be divided into three categories: general contractor, skilled labor such as carpenters, electricians and plumbers, and professional services of any architects or engineers. A few Google searches or phone calls will give you a good idea of the hourly rates of each level of manpower.

Material and equipment costs can be categorized by the different stages of the house construction:

Laying the foundation – the cost of the materials and equipment such as concrete, re-bar, mixers etc. will depend on the type and size of foundation. Will the house have a basement? Is the house built on a slope requiring a retaining wall?

Framing – again, the size of the house will dictate the amount of lumber needed for framing. The number of rooms and the design will be a factor as well.

House Exterior - materials include the siding or other coverings like stucco or stone veneer. Include windows and door installation and roofing materials when calculating the cost to build a house.

Plumbing, Electrical and HVAC – Size and design again plays a role as a house with three bathrooms requires more plumbing and electrical work that a house with one or two bathrooms and kitchen. The same applies to HVAC as larger houses will need more ductwork and a system capable of moving a greater volume of air.

House Interior – The various materials to complete the house interior are drywall, insulation, lighting, bath fixtures, flooring, water heaters and other appliances. And don’t forget the trim or any decorative work.

Landscaping, Patios, Pools and Driveways - Landscaping can be a DIY project to save on labor costs. A driveway can be paved or just a bed of gravel if that is accepted in your neighborhood. You can get quotes from people who build patios and pools and add those figures to the total costs.

Various other factors – Will the house have an attached garage or a second story? Does the house need special roofing or a unique design feature? All of these will contribute to the cost of a house.

Estimating the cost to build a house is a daunting task due to the staggering number of variables that must be considered. If you have some computer skills it will help to create an Excel spreadsheet to list the major categories and subcategories. Just enter and add up the costs after doing your research for materials and labor in your locality.

If the task becomes too overwhelming, you may want to consider talking to a professional homebuilder or developer who may be able to give you the best information based on the type of house you are looking to build.