Modern Home Costs & Rates in 2024
Design
Modern Home Costs & Rates in 2024
As 2024 interest rates have reached historic highs and the price of home-ownership continues to escalate, now more than ever, it is important to understand the costs of building a home in 2024. Think of building a home somewhat like buying a new car: the cost of a Honda, Audi, and Ferrari are very different price points – all get you from point A to B, but their abilities, finishes, accessories, and long-term value are quite different.
First, before we toss out numbers, what’s included in a per square foot price? This is an averaged approach to estimating and is used only at the beginning of a project to help gauge a typical cost range commensurate with quality and the type of project. In reality, different parts of a home cost varying amounts, for example, a kitchen costs more than a bedroom. Square footage in this calculation refers only to heated square feet with all other aspects like a garage and porch baked in. For example, a home may be 3,000sf plus a 900sf garage and a 600sf porch, that extra 1,500sf is boiled into the 3,000sf when considering the per square foot cost. The method generally follows the real estate market, but it is NOT how construction is actually priced. Detailed pricing may only be developed with a contractor based on actual design plans.
So how much should be budgeted for a custom modern home project? As of 2024 in the North Carolina region, for the custom modern homes we design at ThoughtCraft, under 2800sf can range from $450 to $550 per square foot, while two story homes under 3200sf may be close to $550 to $650 per square foot. We’ve witnessed a solid rise in building costs in just two years; however, home appraisal values have also risen at the same rate. Compact home plans with a balance of mid to high-end finishes will keep the build cost lower; while sprawling home plans with luxury finishes will move the build cost higher to $650 to $900 per square foot. In the Massachusetts region add $50 per foot to these numbers. If you desire Porsche-level design with custom luxury and perfection at every turn, add 25% to the above. If you desire quality over quantity consider building a smaller home; our Carrboro House is a 3 bedroom, 2.5 bath with a luxurious living area in only 1750sf. In 2024, our home budgets ranged from around $700K to over $2M.
There are many variables in the cost of a custom modern home, but controlling a budget starts with the layout and design. A compact 2-story 3,000sf home will cost less than a single story 3,000sf home, as some of the larger building costs are associated with foundation and roof areas. This is why it’s very helpful to consult with an architect early in the planning process.
Curious about the Design Process? Want to know more about Costs? Not sure Where to start? We're happy to share some answers. We regularly assist clients with their pre-planning needs including: property evaluations before a big purchase, feasibility studies to determine what’s possible on your property, and needs assessments to help understand how your new home should best function to fit you and your budget. Our mission is to create thoughtful and well-crafted architecture that connects people to their surroundings and reflects our clients' unique character and vision.