The Price Tag of Building Your Dream Home in Ottawa
I found myself scrolling through Pinterest the other day, meticulously pinning images to my “My Dream Home” board. However, as I eagerly sought information on the cost of bringing my dream to life, I encountered a frustrating dilemma.
I couldn’t find a single article that discussed everything I needed to know!
In an effort to simplify the process for fellow aspiring homeowners facing the same challenge, I decided to compile this guide.
I’ve included information about the cost of building a house, factors that impact it, as well as savvy cost-saving tips that I even plan on following!
The Cost of Building a House in Ottawa
The cost of building a house in Ottawa depends on the type of structure. Single-family residential homes cost $515 to 1,085, 13 to 39-story apartments cost $325 – 355, while a 3-story stacked townhouse costs $175 – 210.
Below is a breakdown of expenses from the 2024 Canadian Cost Guide by the Altus Group, which outlines the cost of real estate development and construction across the country.
If you’re still undecided about building a house, consider comparing it with buying one instead.
Factors that Impact the Cost of Building a House in Ottawa
Cost of Labor and Contractors
The cost of labor and contractors plays a crucial role in determining the affordability of building a house in Ottawa.
For example, if there’s currently a high demand for skilled labor in the city, it can lead to a wage increase, resulting in rising construction costs.
Additionally, the quality of workmanship can significantly contribute to the cost. For higher-quality craftsmanship, you have to be prepared to spend more.
There are also months when the cost of labor and contractors is more expensive compared to others.
During harsh winters, for example, the company might require additional measures to make sure their workers are safe, resulting in a potential increase in labor costs.
Material and Equipment
The cost of materials like wood, steel, lumber, stone, brick, and concrete can vary, affecting the overall cost of building a house depending on your choice.
It also goes without saying that higher-quality materials will cost more. However, they might save you in the long run because they last longer, so keep that in mind.
Additionally, some materials might be high in demand, making them more expensive.
In terms of equipment, the expenses of renting or purchasing necessary tools can add up.
Getting the materials and equipment to the site can also cost you money, especially if they’re coming from somewhere far from the city.
Permits and Legal Requirements
Normally, you have to pay fees to obtain permits for building projects. Of course, these fees add to the overall cost of building a house.
Additionally, delays often happen when it comes to dealing with legal requirements and permits, which can push back the date of construction despite having a team of workers on standby.
Of course, you still have to pay them for their time, adding to the costs.
Another factor to consider is you have to meet Ottawa’s rules and guidelines when it comes to building construction to ensure it’s safe and meets the standards, which may require extra cost and materials.
For example, the City of Ottawa design guidelines prefer the use of natural and vandal-resistant materials, explicitly prohibiting wood.
These restrictions can lead to higher expenses as home builders might have to choose more costly alternatives.
Market Trends
Market trends can also affect the cost of building a house in Ottawa.
If there’s a demand for new houses in Ottawa but not enough workers around, construction companies might charge more for their services.
The interest rates are also under this. If interest rates on loans are high, borrowing money for construction can be more expensive.
Economic Conditions
Economic conditions affect all the factors mentioned above, which can disrupt the overall costs of building a house.
Times when inflation rates increase can lead to higher prices for raw materials.
Tips For Saving on Home Building Costs
Without compromising on quality, you can efficiently budget and save on home-building costs. Here are a few tips I have in mind to help you out.
Set a budget
I suggest setting a budget before you start building your home. Make sure to include the construction process, including materials, labor, permits, and contingency funds for unexpected expenses.
Choose the right location
Consider factors such as land price, accessibility, proximity to utilities, and local building regulations when choosing the location for your new home.
For example, Lassiter Terrace is one of the most affordable residential neighborhoods in Ottawa. It also boasts of multiple amenities, including parks and a school.
Simplify the design
A complex design tends to cost more. If you’re looking to save and are open to opting for a simpler home design, you might save a ton.
Learn to negotiate
Don’t hesitate to negotiate prices with contractors and suppliers to secure the best deals. People do it all the time!
Ask about discounts for bulk purchases, alternative materials or methods, etc.
Research and canvass
Researching and canvassing allow you to gather information and compare prices from multiple sources.
From there, you can identify the most cost-effective options without compromising on quality.
Additionally, canvassing for quotes from various suppliers and contractors helps you know the current prices in the market, ensuring you make more informed decisions and are able to negotiate better deals.