Are you in the market for a new home? The cost of building a new home varies depending on the city you build it in, with some cities being more expensive to build in than others. If you're looking to build a home soon, here are the five most expensive cities to do so.
Golden hour charm in Copenhagen
One word best describes the cost of living in Copenhagen: taxes. The sales tax rate is 25%, and the income tax rate is 36%. However, there are many benefits, like free health care, free education, extensive parental leave, and high earnings; the unofficial minimum is roughly $16 to 18 per hour.
Construction expenses would start at roughly $300,000–400,000 with the right fixtures and materials and reach upwards of $600,000 or more for a luxury home.
New York City, USA
Iconic brownstones of NYC | @nypost
Despite a slight decline in construction spending last year, New York City continues to be one of the most expensive city in the world to build in, with an average cost of $362 per square foot. In New York City, there is only so much available land for construction. Skyscraper density is already high and land is scarce in places like Midtown Manhattan, where zoning would allow for profitable building.
The cost of installing landscaping in New York ranges widely depending on the municipal region from $1,370 to $5,300 on average. When estimating your construction costs, don't forget about the exterior of your house as well.
Colorful houses along a pathway in Oslo | @theintrepidguide
The average price of a home in Norway is about 45 500 NOK per square meter, which is equivalent to about 5150 USD or 4300 EUR, although prices vary depending on the type of property and the region. Wages are paid hourly at high rates in Norway. The majority of goods and services need the use of labor, hence labor costs are high. In consequence, this raises the cost of housing construction in Oslo. The price per square meter in Oslo is approximately 61900 NOK, which is rather high when compared to more rural districts of Norway like Finnmark at 25550 NOK.
Luxury property in the city of Geneva | @sothebys
In Geneva, it can be quite expensive to build a home; on average, it costs 350 CHF ($365.17 USD) per square meter. In comparison to other European nations, the government invested significantly more in creating rail and roads, which contributed to the high pricing. However, the costs of carrying heavy materials across the landlocked nation also contributed to the high prices. As a reference, you should budget about 500,000 CHF ($521,000 USD) for a small house once the costs for the electrical and water grids, a driveway, landscaping, and the price of the property itself are taken into account.
A row of houses in London | @businessinsider
It is safe to say that London would be one of the more expensive cities to build a house in. There is no straightforward formula for calculating how much it costs to build a house, with a number of variables affecting the total cost. In London, labor expenses alone make up to 40% of the entire cost of construction. If we were to estimate, a two-bedroom house in London will typically cost between £187,625 ($228,454 USD) and £477,375 ($581,257 USD) to build.
So, if you're in the market for a new house and are looking to stay within budget, it's important to keep these five expensive cities in mind. Luckily, there are plenty of other affordable locations where you can build your dream home. Have you started your search yet?