Understanding the True Cost of Building a House in Alberta: A Chestermere Perspective
Behind every new construction home is a story of relentless hard work.
A new home is a dream come true—and no dream comes to life in just a snap.
From finding suitable land and designing the house to hiring reliable builders and obtaining permits, building a home is not an easy feat.
But the question here is: Are you up for this exciting challenge?
Keep reading to discover the home building process and home building cost in Alberta.
Table of Contents | The Cost of Building a House in Alberta
- The Home Building Process & Home Building Costs
- Research and Planning
- Pre-Construction
- Site Preparation
- Construction Phase
- Post-Construction
- New Construction Homes by Golden Homes
- Our Chestermere New Homes For Sale
The Home Building Process & Home Building Costs
1. Research and Planning
Budgeting
The first step in the home building process is to determine your budget. This will serve as your guide as you make financial decisions along the way.
Finding Land
The price of land will typically consume about 20 to 40% of the total home building cost, depending on the specific location, size, zoning, and any geographical constraints.
| Location | Average Price per Square Foot (Residential Land) |
| Calgary (Urban) | $30 – $200+ |
| Edmonton (Urban) | $30 – $200+ |
| Chestermere (premier lakeside areas) | $260 – $300 |
| Suburban Areas | $20 – $100 |
| Smaller Cities/Towns | $10 – $80 |
| Rural Areas | $1 – $20+ |
*Disclaimer: Average prices mentioned above are based on August 2024 industry data. Prices are subject to change depending on market conditions and can not be used nor honoured as the actual rates for land purchases.
Designing the Home
Now, here’s the fun part of the home building process—collaborating with an architect or designer to draw the blueprint of your vision. Wondering how much this step will cost you? Find out below!
| Service | Cost Range | Details |
| Initial Consultation | Often Free to $500 | Some architects may offer a free initial meeting to discuss the project scope. |
| Hourly Rates | $90 to $250+ per hour | Rates depend on the experience and reputation of the architect. |
| Percentage of Construction Costs | 8% to 15% | Typically, residential projects are charged as a percentage of the overall construction cost. |
| Fixed Fee | Varies | Some architects may agree to a fixed fee for the entire project, but this is less common and would depend on project specifics. |
| Cost Plus | Varies | In this arrangement, the architect is paid for all project costs plus a predetermined percentage or fixed fee. |
Assemble a Team
Are you ready to assemble a team that’s got what it takes to build the dream?
This is the part where you hire a home builder or general contractor.
But, what’s the difference between the two? A home builder is typically responsible for the construction of new residential properties from start to finish. They oversee the entire project, from planning and design to construction and finishing touches. On the other hand, a general contractor is responsible for managing and coordinating all aspects of a construction project, whether it be residential or commercial. They hire subcontractors, schedule work, and ensure that the project stays on track and within budget. While a home builder focuses specifically on building homes, a general contractor is more versatile and can take on a wider range of construction projects.
If you’ve opted to have your home designed by an architect, they will usually be able to recommend contractors who can kickstart the building process.
Here’s what you can expect their fees to typically look like, including the price of materials, laying the foundation, framing, installing systems, interior and exterior work, and finishing touches.
| Home Building Cost | |
| Construction Type | Average Price Range per Square Foot (CAD) |
| Basic Construction | $150 to $200+ |
| Mid-Range / Standard Construction | $200 to $250+ |
| Custom / High-End Construction | $250 to $300+ and upwards |
2. Pre-Construction Phase
Land Surveys
As part of the home building process, various types of land surveys are required to be carried out, such as the following:
| Survey Type | Purpose | Average Cost Range in Alberta |
| Boundary Survey | To establish the exact boundaries of your property. | $1,000 to $3,000+ |
| Topographic Survey | To map the land’s contours, elevations, and features for design considerations. | $1,500 to $3,000+ |
| Site Plan Survey | To show the proposed development in relation to the property boundaries for permit approval. | $1,000 to $2,500+ |
| Real Property Report (RPR) | To illustrate improvements relative to boundaries, often required for permits. | $500 to $1,200+ |
Environmental Assessments
Before you can begin building a house in Alberta, several environmental assessments are necessary to ensure the construction complies with regulations and follows environmentally friendly building practices in Alberta.
This may include the following:
| Environmental Assessment Type | Average Price Range (CAD) | Details |
| Soil Assessment | $1,500 to $5,000+ | Determines if the ground is stable and suitable for buildingCosts depend on the complexity and depth of soil analysis required. |
| Water Assessment | $1,000 to $3,000+ | Evaluates local water sources, including wells or surface water, for quantity and quality. |
| Wildlife Assessment | $2,500 to $7,500+ | May be required to identify any endangered species or habitats that could be impacted by the construction. Costs can significantly increase if specialized ecological services or extensive field surveys are needed. |
| Potential Pollution Sources Assessment | $2,000 to $10,000+ | Could include nearby factories or agricultural operations—a crucial step to prevent any contamination of the area during and after construction.The range is broad due to the varying complexity of potential sources and the analysis required. |
Obtaining Permits
While dreaming is entirely free, you will, however, need the seal of approval of your local municipality to start building your dream home. At this stage, you need to submit your plans to the local municipality and obtain the necessary building permits.
| Permit Type | Average Cost Range (CAD) | Notes |
| Building Permit | $100 to $2,000+ | Building permit fees are typically based on the construction value or square footage of the project. |
| Electrical Permit | $100 to $500+ | Electrical permit fees are usually dependent on the number of circuits or the size of the service being installed. |
| Plumbing Permit | $50 to $500+ | Plumbing permit fees can be based on the number of fixtures or the scope of the plumbing work. |
| Gas Permit | $100 to $500+ | Gas permit fees might be calculated based on the number of outlets or the BTU/h rating of the installed gas fixtures. |
Construction Financing
Secure a construction loan if you haven’t done so already. This may involve providing your lender with detailed plans and a contract with the builder.
3. Site Preparation
Do you see what we see? That’s your dream home getting much closer to becoming a reality.
At this point, it’s all about preparation—clearing the land, setting up utility connections, and ensuring the site is ready for the home building process.
| Site Preparation Task | Average Cost Range (CAD) | Details |
| Clearing the Land | $1,500 to $5,000+ | Costs depend on the size of the lot and the amount of vegetation or debris to remove. |
| Setting up Utility Connections | $10,000 to $30,000+ | This can include connecting to municipal water and sewer lines, electrical grid, natural gas, and internet/telephone services. Costs are variable based on distance to connections; rural areas can be more expensive. |
| Grading and Levelling | $1,000 to $3,000+ | Ensuring proper drainage and a level foundation; may be more if extensive grading is needed. |
| Excavation for Foundation | $2,500 to $10,000+ | Digging the space for the foundation; cost varies by foundation type and soil conditions. |
4. Construction Phase
As mentioned earlier, the fees that your contractor or home builder will charge you typically already include the price of materials, laying the foundation, framing, installing systems, interior and exterior work, and finishing touches. Here’s what those stages entail:
| Construction Phase | Description |
| Laying the Foundation | Includes excavation, forming, and pouring a concrete foundation based on design requirements. |
| Framing | Involves erecting the house’s skeletal structure, including walls, floors, and roof systems. |
| Installing Systems | Entails running electrical wiring, plumbing, HVAC ductwork, and adding insulation throughout the house. |
| Interior and Exterior Work | Covers the application of interior drywall, exterior sheathing, and finishes like siding and stucco. |
| Finishing Touches | Comprises the installation of fixtures, cabinets, flooring, and trim. Also includes completing painting, tiling, and other cosmetic work. |
5. Landscaping
Don’t forget about landscaping! Driveways, walkways, decks, and basic landscaping are crucial elements that complete the home building process.
| Landscaping Element | Average Cost Range (CAD) | Details |
| Driveways | $5,000 to $15,000+ | Cost varies with material (asphalt, concrete, pavers) and size of the driveway. |
| Walkways | $1,000 to $5,000+ | Depending on materials (concrete, stone, etc.) and length. |
| Decks | $15 to $50+ per square foot | Varies with material (wood, composite) and complexity of the design. |
| Basic Landscaping | $1,000 to $10,000+ | Includes sod, trees, shrubs—higher costs entail for extensive plantings or design services. |
6. Inspections and Approvals
Building Inspections
Inspections by local authorities are essential to ensure compliance with building codes and permit requirements. This typically happens at various stages of the home building process. Fees for inspections are usually included in the permit fees.
Occupancy Permit
Once construction is complete and has passed the final inspection, obtain an occupancy permit that allows you to legally inhabit the home. In some municipalities, the fees for this are included in the building permit costs. If it’s not included, then you can expect the price range listed below:
| Separate Occupancy Permit Fee | $100 to $500+ |
5. Post-Construction
Final Walk-through
The final walk-through with the builder is absolutely crucial, as this is the part where you identify any issues that need to be addressed. Catching problems at this stage would be much more convenient, rather than later on when you’ve already moved in.
Warranty and Insurance
The warranty on the workmanship and materials of your builders should be included in the cost of construction.
On the other hand, home insurance involves separate costs, which can range from CAD $800 and $2000+ per year. This actual cost would depend on the value of the home, its location, the condition of the property, the type and amount of coverage selected, the presence of security systems, the claims history of the homeowner, and specific risks specific to the region, such as flooding or wildfires.
Moving In
Now, it’s time to start living the dream. Once the home is completed to your satisfaction and all approvals are in place, you can finally move into your new home!
New Construction Homes by Golden Homes
Navigating the home building process requires attention to detail, effective project management, and a clear understanding of the process. Aside from being a substantial financial and emotional investment, it’s also incredibly time-consuming.
But what if you could enjoy the beauty of new construction homes in Alberta without having to go through the extensive home building process?
Golden Homes—a premier builder in Alberta and a top choice amongst seasoned and first time home buyers—makes it easier than ever for you to start living in your dream home.
Our new construction homes in Phase 4 of the prestigious Kinniburgh South community in Chestermere are now available. This is your final opportunity to secure a brand new, beautiful home in this stunning lake-side community. With its picturesque scenery, family-friendly community, nature-centric activities, and proximity to big-city amenities, Kinniburgh South offers the best of both worlds.
Act fast—register today!
Our Chestermere New Homes For Sale
Ultimately, the home building process is a lot more extensive than the usual home buying process. But Golden Homes enables you to quickly move into a newly-built properties through a simplified process.
Interested in discovering more about our new homes in Chestermere that tick all the boxes?
Explore our wide range of Chestermere show homes.
Contact us today for more information.
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