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Various external factors beyond your budget constraints can affect your home building process’s overall costs and expenses. The land size, location, utilities, and many more variables determine the final price of your newly built house.

Considering the extensive planning procedures and workforce involvement, you would need to do plenty of research and information banking on your end before the commencement of the home building process.

Therefore, to make it easier for you, you can check out this page — you can learn everything you need to know about insuring the home after it is built. 

Cost to build a house in Alberta

When it comes to the average costs of building a house in Canada, the major cities will cost you anywhere between $130 to $375 per square foot. Some highly sought-after areas even go for around $400 per square foot. The cost may vary depending on the location, choices in design, interior and exterior finishes, and much more.

The cost of buying an average existing single-family house comes around to be more than $225,000. At the same time, homeowners have reported that building a new one costs an average of more than $300,000. It would put building a 2,000 square foot home to cost about $150 per square foot.

You should know that it is cheaper to build a house in the smaller cities, towns, and villages than in a metropolitan city. Also, the above-average costs do not account for the costs of buying land and permits.

Workforce required

The average labor cost is anywhere between 35% to 40% of the total build costs. These include the costs of hiring architects, developers, custom home builders, master electricians, bricklayers, and more; with their average charges per hour being as follows: 

  • Architects charge an average of $41 to $45 per hour (as of 2019).
  • Electricians charge an average of $39 per hour.
  • Bricklayers charge anywhere from $30 to $41 per hour.

On average, it takes up to 16 months to finish building a house. So, considering all the above services, each service will cost you at least $60,000 to $70,000 per year.

Material costs

The material cost to build a house in rural Alberta are higher than the labour costs and can even constitute over half the overall building expenses. Let’s say you’re building a home with an average size of 2,200 square feet, and the material costs make up $50 per square foot. Then, the overall construction materials would account for around $110,000 and would cover: 

  •  Framing
  •  Foundation
  • Roof
  • Sidings
  •  Interior and exterior doors
  • Windows
  • Insulation
  • Flooring, etc.

The costs of materials would also vary depending upon your choices regarding the materials’ long-term durability, energy efficiency, whether it’s eco-friendly or not, along with energy and social costs.

Additional price factors

When you look at the prices listed to build your own home, the prices mentioned above are just the averages. Plus, with the range of customization and development available, there is a high possibility that the final price for your home will likely vary from the calculations mentioned here. It all depends on where you live and the options you decide to work with.

Some of the significant pricing implications include the following:


Building a house will be cheaper if you already own the land. But otherwise, in addition to the costs of the land, you will also have to pay for having the land cleared or the yard graded (if required) for construction to proceed.

Size of your house

The more square footage required, the higher the cost will be. The costs are typically determined per square foot, so an increase in an area directly affects the costs.

The number of stories

It will cost you more to build two or more stories than one. The costs of designing and developing a living space with two or more stories will add to the overall costs.

Finishes and types of materials used

The type of materials used and the overall quality of the finishes and fixtures employed will significantly impact your build costs. Materials like brick, stone, and vinyl all do not cost the same. Similarly, adding high-end granite countertops or installing hardwood flooring will come with additional costs.

Fees, permits, and investigations

The construction industry’s government rules and regulations are constantly reviewed and updated. Consequently, you will have to face several fees and costs when getting your construction procedures up to code.

Restrictive covenants

There are cases where houses will have to use specific building materials or particular designs. Such practices are common in protected areas or homeowner associations. And the relevant requirements will significantly affect the cost of building a home.

Production homes or custom homes?

Production home builders are companies that have organized and systemized their entire home construction process.

They offer an extensive range of floor plans that have already been priced out. These floor plans cater to a wide range of budgets from standard to luxury.

However, each step in a production home building has already been finalized before the construction even starts. It means that you have little to no say in the construction process, nor can you improvise on anything.

On the other hand, custom builders are the local contractors that guarantee personal quality and uniqueness. When required, custom builders also give you the freedom and flexibility to improvise and change certain things according to your tastes.  They also do not mind working alongside architects and other workforce to develop home plans. 


Investing in huge construction and properties, be it a house, a car, a business venture, or anything else without proper prior knowledge, is always a bad idea. Without the relevant knowledge about the government regulations, market prices, and labour costs, you are probably on a one-way trip to incurring substantial losses. 

Thankfully, you don’t have to worry about any of these issues, since you now have an idea about the current market prices and variable factors that can affect the cost to build a house in Alberta. So, go ahead with building your dream home and enjoy the process.

Denise Lockwood has an extensive background in traditional and non-traditional media. She has written for, the Milwaukee Business Journal, Milwaukee Magazine and the Kenosha News.