Building Costs – What to Expect

Owning a lot is only the first step towards sipping a Long Island Ice tea or enjoying some of PEI’s Craft Beers on the finished deck.

Long Island Ice tea. Anyone ?
Craft Beer – it’s Warm Outside!
2018 C21 Price/Square Foot ($/sf) Survey - ALL Sales INCLUDING LAND.
2018 $/sf Survey
Including LAND

Building activity in the last few years has been brisk on PEI and finding a builder may be an adventure. Doing your homework and finding a good builder will result in years of satisfaction and enjoyment. Price is always a factor, but may not be the prime motivator for choice. Century 21 evaluated sales across Canada (both new and existing stock) to arrive at a Cost per Square Foot measure for cities across the country. Costs were for sale prices for all homes and INCLUDED land. Charlottetown costs were at $196/sf for the homes sold in 2018.

For calculation purposes, say the lot is $50,000 and the average home is 1600 sq. ft. At $196/sf a sale would be at $313,600 . Deduct $50k – $263,600/1,600sf = $165/sf (same as $50,000/1600sf = $31.25/sf deduct from $196/sf ) In this example, $165/sf cost would be for the home alone. Since the C21 results are for the entire housing stock, newly constructed homes would have a higher cost for the home. This agrees generally with 2019 ball-park estimates that NEW home construction on PEI is in the range of $200 per sf. This is influenced heavily by the quality of finishings and interior decor, but provides a starting point to evaluate estimates. Here is a link to the Century 21 study with results across Canada (PDF Format) . NOTE again, the study home costs per sq.ft. INCLUDE LAND.

For those considering a lot purchase, keep in mind the total costs at the finish line. A drilled well will add up to $10,000 and even $20,000 to the final total. In Granville on the Water, you do not have this cost, as piped water is distributed throughout the subdivision. Together with underground electrical services, value and quality is elevated in the neighbourhood adding to peace of mind.

Home under construction in Granville on the Water early in 2019 … loving the view !

There are a number of ways to find a good builder on the island. Word of Mouth and recommendations from known friends, family, and regular acquaintances is usually a good way to avoid problems. That should find you a good builder, but perhaps not the best or not on your schedule ? As homes represent the biggest investment most people ever make, take your time to find the right builder …. check out past owners and their reviews and comments. Look at the product built by the builder and inspect the workmanship and quality that was put in place.

A few links to review for Builders and Suppliers :