Custom Home Builds: Understanding the Costs Involved

In New Zealand, there are many different pathways to owning your own custom house build. Some homeowners invest in prefabricated builds, which can cost up to $20,000 depending on the distance these homes need to be transported, and others may consider a house and land package, which includes the purchase of land and a house design all in one. But, if you’re confused about the costs involved in a custom house build, and would like a more thorough breakdown – don’t worry! 

DW Homes explains all, below.

How much does it cost to buy an existing house in New Zealand?

To understand the cost of a custom home build, it’s best to start with the average price of pre-existing homes in New Zealand – that is, homes that are built to a standard specification, or homes that may have been around for a while and require renovations to be brought up to scratch! 

In Auckland, the average price of a home as of 2023 was $1,015,000. In Wellington, this drops to an impressive $782,000, and in regions such as Southland, $450,000. There are massive fluctuations in price depending on the location you’d like, and how close to a major city you are. 

Some people wrongly think that custom home builds are more expensive because they’re more personalised than a standard build, and thus may come with additional expenses and add-ons. This isn’t necessarily true, though we do admit that this investment can increase in price quickly. 

How much more expensive is a custom home build?

The cost of your custom home build depends on a number of factors. Location is just one of them! Custom builds increase in price depending on the number of compromises that homeowners are prepared to make to tailor the property to their exact needs, too. This could be investing in cheaper materials for the kitchen, or choosing different roof tiles to accommodate a kinder budget.

Nevertheless, we do admit that the average cost for a custom home build can be a little eye-watering. Per square metre, as of 2023, it costs around $3145 to build a home from the ground-up in New Zealand, a 12% increase from the years before. 

If we consider that the average size of a two-bedroom house in New Zealand is around 150 square metres, it’s easy to imagine the drain on your bank account. As a result, some homeowners opt for government help to purchase their first home, or even a personal home loan to get the ball rolling.  

Why is a custom home build a worthy investment?

If a custom home build can be such an expensive investment, why is it even worth considering?

At the end of the day, the allure of customisation is strong. Buyers have the freedom to design each and every aspect of their new property – right down to the wiring and floorboards. It’s very special to create a space that reflects you in its entirety! 

Custom homes also provide you with a return on the initial investment in many ways. 

They are well-optimised for energy efficiency, and their resale value tends to be higher. By their very nature, these homes are designed to enhance your quality of life, which is undoubtedly an appealing prospect for many New Zealand buyers.

Ultimately, the decision lies with you, but if you ever find yourself interested in a custom home build, finding the right professional to bring your dreams to life is key! 

When it’s time to invest in your own custom home build, the professionals at DW Homes have you covered. We provide a range of house and land packages, alongside our comprehensive design and build service, to make sure that our New Zealand customers get the personalised home they deserve. 

To find out more about our services, please get in touch. 

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