How Much Does it Cost to Build a Custom House in San Diego, CA in 2024?
The Costs Of Building A House In San Diego
The cost to build a house in San Diego will vary since you are in control of the lot cost, design, size, and other factors that will heavily impact the price. The average cost to build a house in San Diego for Buildable’s clients is, all-in, $1.4M including land and build budgets in the approximate range of $400-$500 per square foot. However, we have many clients that have $1.0M all-in budgets and we can create amazing custom homes for them, too.
It’s important to note that it generally costs the same to build the house on the coast or east county, but the land on the coast would be more expensive. Additionally, the cost per square foot to build a house in San Diego tends to increase to around certain higher cost of living areas like Rancho Santa Fe and La Jolla. This is due to the design expectations of the area and other requirements including homeowner’s association design requirements, coastal commission fees, and other improvements that are necessary to make the lot buildable.
The cost to build a custom home in San Diego will depend on a variety of factors. To find out how much your home build might cost, use our cost calculator below.
A Breakdown Of The Average Cost To Build A House In San Diego
To break down the cost to build a house in San Diego, many factors must be considered. The cost of building the actual home itself is only one of many costs associated with building a house in San Diego. Approximately 67% of the total allocated budget will go towards building the actual home, while approximately 25% will go towards the land itself. The remaining 8% will go towards other necessary fees, permits, and other things that are necessary to ensure your house will meet and exceed all required standards.
Breaking Down the Cost to Build A House In San Diego
3% — Architects, designers, or draftsmen
3% — Permits, impact fees, and school fees
2% — Surveys, civil engineering, grading plans, and landscape architects
Cost per square foot to build a custom house in San Diego, California
Many people ask the question, how much does it cost to build a custom house by size? The answer is that it varies by the complexity of design, the level of finishes, and the improvements needed to make the lot buildable. One key point is that many builders provide a cost per square foot for the structure, not other costs associated with the build, including soft costs (permits, designs, etc.) and hard costs (structure). The home structure is only one component of costs, and at Buildable, we aim to provide an “all-in” number considering the unique needs of the lot. It’s also important to note we can build below and above this range, and we’ve done it. It’s up to you to determine a budget and be sensitive that your design will drive the costs.
| Square Feet | Bedrooms | Average Build Cost Range |
| 1,500 | 2 - 3 | $600,000 - $750,000 |
| 1,600 | 2 - 3 | $640,000 - $800,000 |
| 1,800 | 3 - 4 | $720,000 - $900,000 |
| 2,000 | 3 - 4 | $800,000 - $1,000,000 |
| 2,500 | 3 - 5 | $1,000,000 - $1,250,000 |
| 3,000 | 4 - 6 | $1,200,000 - $1,500,000 |
| 3,500 | 4 - 6 | $1,400,000 - $1,750,000 |
| 4,000 | 5 - 7 | $1,600,000 - $2,000,000 |
| 5,000 | 5 - 7 | $2,000,000 - $2,500,000 |
Cost to build a home in San Diego (67%)
Building your home will take around 67% of your all-in budget and although it is the longest part of the custom home-building journey, it is the most rewarding part. The total time to build a home in San Diego is around 24 months, but construction only takes between 10-12 months and throughout that time and we will do all of the heavy lifting for you. By working with the designer to manage the build through permits and coordinating all of the subcontractors, we will make starting your custom home build process simple and enjoyable for you. A typical custom home can have 20-40 specialized subcontractors doing things like laying the foundation, building cabinets, installing HVAC units, and even wiring garage doors.
Before the build begins, we price out your unique design by triple-biding high-quality subcontractors who will help bring your home to life. Our team has built over 1,000 homes in San Diego over 30 years, so we have relationships with the best craftsmen in the industry and can ensure you get the highest quality work at the best price. All you have to do is make some decisions about things like paint colors, appliances, and hardware finishes along the way and watch the progress as the plan for your custom home becomes a reality.
You may have seen costs of building in other regions of the United States, but it’s important to know that each area will have very different costs and it’s impossible to compare them. The cost of labor in San Diego tends to run higher than in other areas, which makes it more expensive to build a home here. However, the cost to build a house in San Diego is much lower compared to other metro areas in California like San Francisco and Los Angeles.
Cost to buy land in San Diego (25%)
We suggest allocating around 25% of the total, all-in cost to build a house in San Diego for the land the home will sit on. This percentage might increase up to as high as 35% - 45% based on the specific area you choose in San Diego, as some tend to be more expensive than others. Additionally, this percentage can change based on the priority that you place on the location of the land versus other amenities within the house. Typically, 25% is a great baseline you can use for the cost of the land.
Try our Land/Build calculator and we can send you an estimate.
If you’re wondering how to choose land for your new home in San Diego, there are multiple factors that we ask you to consider when picking land, and based on what you tell us, we will find the right land for you.
Factors to consider:
Geographic location within San Diego
Lot size
Proximity to neighbors
Amenities, such as restaurants and parks, near the land
Views on the lot
Commute time to frequented places, such as your workplace
Urban vs. rural feel
Once we have a sense of what kind of land that would be right for you, we deploy our proprietary Active Search process to gather as many land opportunities as possible, some of which you won’t see anywhere else. The first step of our Active Search process involves creating marketing campaigns aimed at applicable areas that are right for you. We also directly reach out to our robust network of developers, real estate agents, and wholesalers to find lots that are not visible on the Multiple Listing Service (MLS) to find opportunities that aren’t available to everyone.
Once we have created a shortlist of lots that would fit your needs, we will tour them with you to see if any of them fulfill your vision. During these tours, we will identify the cost of improving the land, which must be considered when determining the all-in cost to build a house in San Diego.
It is important to have experts with you during the land selection process. Land improvements are one of the primary drivers of land costs, and potential improvements can make lots unviable for development. Buildable is an A-Licensed general contractor, so we can advise you on engineering costs and work them into the negotiation. Additionally, we have a real estate agent who is trained on land evaluation — something that is rare in San Diego because only 2% of real estate transactions are land.
After narrowing down the options, we will present you with the best lots and let you make an informed decision. Once you make a decision, we negotiate the cost with the seller using the insights that our investor, A-Licensed general contractor, and real estate agent have gained throughout the process.
Once an offer has been accepted, we will complete due diligence on the land by creating a land report that analyzes 26 different dimensions of the lot. This report will confirm the lot’s buildability and identify any potential risks for the future. Our land report will answer some key questions:
Can I build a house and fulfill my vision on this land?
Will zoning requirements in this area pose any problems?
Do the natural features of the land impact the project at all?
If I build a house on this land, will I be able to get water, electricity, gas, sewer, Internet, and other utilities?
Is there access to utilities?
How much will it cost to access these utilities?
What improvements need to be made to the land to make it buildable?
How much grading is required?
Are there any regulations that impact the driveway length or size?
Will any improvements cost above and beyond the norm?
Cost to design your home (3%)
Architects, architectural designers, or draftsmen will account for around 3-5% of the total cost to build a house in San Diego. Typically, you will work with an architect or designer to execute your vision once you’ve purchased the lot. Buildable will guide you through this process and help you determine the best partner for you to execute your overall vision and budget.
Architects are especially helpful if you have a specific aesthetic style in mind, as they are trained in the technicalities and artistic elements of a house. Architectural designers are not licensed architects, but will give you some tips for designing your new home that will help you make the most of your space and create a layout that is aesthetically pleasing and functional. Draftsmen are trained to design homes, but in general, you will be playing a larger role in the development of spaces, as opposed to the more holistic perspective and point of view that architects and designers will bring to the project. It’s important that you have experts who can guide you through this process so you’re not taking the wrong approach, which could result in wasting money or having a negative outcome.
Buildable plays an active role during the design phase because architects and designers don’t know how much things cost. Designers work on your direction, so you may be leading them towards a design or approach that you can’t afford to execute. Buildable provides guidance, trade-offs, and insights during this process so you are aware of what you're asking for and we have the ability to provide a perspective of different ways to accomplish your goal that you may not have thought of.
Cost of home building permits in San Diego (3%)
The permits and fees factored into the cost to build a house in San Diego will take around 3% of the all-in budget. Permits are in place to ensure your house is being built to meet planning and safety regulations, but also to fund your local community to support necessary services. Paying the fees to obtain permits is a compulsory part of the home-building process. There may be other fees paid to the local government with any new build to fund the cost of any impacts to local infrastructure or special projects like Mello-Roos.
Cost of surveys, civil engineering, grading plans, and landscape architects (2%)
Approximately 2% of the cost to build a house in San Diego is allocated to land surveys, civil engineering, grading plans, and landscape architects. These are all parts of the custom home-building process that you can't avoid. Surveys, grading plans, and reports provided by civil engineers and landscape architects will be required by the design partner to execute the construction drawings. Unfortunately, there is no great way to estimate the price of this work without knowing more about the exact lot features and it’s history. This is why it’s important to have experts with you who can provide estimates based on their knowledge as you evaluate lots.
In general, the cost to build a house in San Diego will be different for everyone and will vary greatly based on location, features of the lot, and your vision for the home. San Diego is quickly becoming one of the most desirable places to live in the country — and there aren't many new homes, so building a custom home can create significant equity.
How Long Does It Take To Build A Custom Home In San Diego?
Building a custom home is one of the most rewarding experiences in your lifetime, and by working with Buildable from start to finish, we will ensure the process is as seamless and gratifying as it should be. Overall, it usually takes around 24 months to build a home from beginning to end. Typically, we estimate that the lot search will last between 2-5 months, followed by 3-5 months of designing the house, and 8-12 months of actual construction time. This all depends on how quickly we can find and design what you’re looking for, but also external factors like the city. Some cities process permits quicker than others, which can expedite the process tremendously.
There may be other timing impacts that are due to the lot being in the coastal zone, within an HOA, or other special factors. Buildable will advise you if a lot is subject to any of those impacts during the land search or due diligence phase.
How Much To Budget For Custom Home Options
One of the biggest benefits of building your own house in San Diego is the ability to customize the house around all of your must-haves. When you purchase a new construction home from a large or small developer, the builder will have already made decisions about design and aesthetics that might not fit your personal taste. Additionally, they will likely be aiming to maximize their profit rather than the usability and enjoyment of your home. There’s nothing like a thoughtful home layout and designed uniquely around your lifestyle.
To see which custom home options might fit your budget for your custom home build, we conduct ethnographic research with you in your current home. This helps us understand how you live, what you like, and how your new home can make your home enhance your lifestyle. Buildable’s experienced team is well-versed in custom home options, and we can help you make the best decisions that maximize your custom home build.
Here are some of the customizations that we’ve done for clients in the past:
Home theaters
Outdoor TVs and sound systems
Built-in pet washing areas
Fenced outdoor cat enclosures
Built-in and plumbed coffee machines
Appliance garages
Elevators
Smart home automation
Movable wall systems
See-through fireplaces
Wine fridges
Outdoor showers
Automatic pet doors
Cold-brew and beer taps
Toilet washlet systems
Steam and spa showers
Alexa-controlled shower systems
Outdoor kitchens
Extra-large garage doors (18')
How To Finance A Home Build in San Diego
Budgeting for and financing your home build can seem overwhelming, since it is an unfamiliar process to many people without having context or knowing the average cost to build a house in San Diego. However, the cost to build a house in San Diego is quite comparable to purchasing an existing house, with a lot more benefits if you can deal with the time it takes.
What Is A Construction Loan?
As opposed to buying an existing home, custom home construction lending isn’t a mortgage — rather, you will need a construction loan. Luckily, the construction loan process is almost identical to the traditional mortgage process. The main difference between the two is that the builders must put in more work on their end, but the difference to the client is practically nonexistent.
Using A Commercial Bank To Finance A Construction Loan
The most common way to finance a construction loan is through a commercial bank. Commercial banks offer competitive rates and a process that is very similar to obtaining a traditional mortgage.
Benefits to using a commercial bank:
Rates at approximately 3%-4%
Only pay interest during construction
Automatically converts to a 30-year fixed rate upon completion of the build
Once you’ve aligned on the major design aspects of your home, you can initiate the construction loan application process with your lender. Typically, this can take about 60 days to complete. The process is very similar to the traditional mortgage process, but there are additional needs from the builder. We will complete all the builder-required documentation deemed necessary by your lender to get your construction loan.
Using A Private Loan To Finance A Construction Loan
The other main way you can finance your construction loan is through a private lender. There are several private lenders who are great for individuals looking for fast funding, fewer prerequisites, but who are willing to pay a slightly higher rate.
Benefits to using private lenders:
Fast closing times
Only pay interest during construction
No citizenship requirement
To help our clients, we created an article about the questions to ask your lender to make the most informed decision possible.
Build Your Home in San Diego With Buildable
Building a home in San Diego takes an immense amount of time and effort, and can appear overwhelming to those who start the journey alone. However, building a home can be straightforward when you approach the process with experts by your side who can guide you through every step.
At Buildable, all of the people you need to have a stress-free home build will work with you to create the home of your dreams. Read about our team, talk to us, and get the answers to questions you may have about starting the custom home building process in San Diego.
