What does it cost to build a house in Winnipeg?

BY REID BOLES, REALTOR

With so much uncertainty in the world, many people have questions about where they fit into the real estate market. Luckily here in Manitoba we are mostly insulated from the major market shifts that we see in the larger cities across Canada, but it does not mean that we are immune to rising costs. Most homebuyers eventually ask themselves is it better to buy or build a home, and what it would cost to build a home.

What does it cost to build a house in Winnipeg?

The cost to build a home in Winnipeg depends on the builder you use, the upgrades and finishes you choose, and the size of the home. Generally, the cost to build a home runs from about $200 per sqft with a standard builder up to about $500 per sqft with a custom builder— but of course the sky is the limit.

For example, to build a 1700 sqft two-storey with basic finishing work with a standard builder, the build cost to would probably be around $425k. Building a 2800 sqft home with a number of high-end finishes with a custom builder would probably be more like $1.2M. The nice thing about building a home is that the choice of size, builder and finishing work is all under your control, so you can splurge where you want, and save where it makes sense.

This is the cost of the actual house, which is not including the cost of the land, which will add approx. $150k for a standard lot in a new development, $250k for a premiere/lakefront lot in a new development, $350k for a standard lot in a mature neighbourhood like River Heights, and closer to $1M for a premiere/riverfront lot in a mature and desirable area like Tuxedo, South Drive, or Victoria Crescent.

Also not included in that price is the goods and services tax (GST), and the costs for landscaping, appliances, and window coverings. Depending on the builder, AC and driveway may or may not be included in the build cost.

What do I need to be careful about when building a house?

Watch for an escalation clause. This is a clause that some builders include in their contracts to protect themselves against rising costs (usually for materials and labour). The standard amount is $30-50k over the agreed-upon price, which the builder may apply if their costs increase from the signing of the contract to the completion of the house. Some builders have an open escalation clause which allows them to add an unlimited amount to the total.

If you are building a new home, we strongly recommend that you get a realtor that is familiar with the process to help you review the contract and negotiate for your interests.

Also watch for your own escalating desires. It is very common for people to want to upgrade the finishes or add new features as the build progresses. My advice is to anticipate this, and plan for a build that is 10% lower than your budget— if you do this, chances are by the time you’re finished, you will come in right on target.

What are the advantages to building a house in Winnipeg?

A custom-built house is not only 100% built to suit your tastes, it also brings a mandatory new home warranty which offers many levels of coverage should something go wrong after possession.

Another advantage is that the investment value for new homes is generally really good — you buy in a developing area and suffer through the growing pains (dirt, construction, immature landscaping, etc), but by the time you’re ready to sell, the area is complete, making it more attractive for a new family to move in, so you get a nice boost in your property value.

Another thing to note is that you will not have to worry for many years about replacing the roof or any other higher ticket cost related to the homeownership. You truly get to just move in and enjoy!

What should I do next?

Still not sure if building is for you? No problem! Is it better to buy or build a home is a question we get a lot and we’re happy to help, so contact me anytime.

Starting to feel pretty sure a build is a good idea? Please explore our website to learn about Discovery Homes Ltd and some of the design options available to be built right away.

If you’re leaning towards buying an existing home, we have lots of information about the buying process and be sure to check out what’s for sale now.

Good luck!