In Central Oregon, building costs can vary from the state average due to local labor costs, the availability of construction materials, and other regional factors. While the cost per square foot is a valuable starting point for creating a budget, it’s important to remember that it doesn’t include expenses like land, permits, or other site-related costs, which we’ll cover in more detail below.
What Factors Impact the Cost to Build a Home?
The factors that affect the cost to build a home, an additional dwelling unit, or a shell home include not just square footage, but also the type and quality of materials used, labor costs, permitting requirements, and custom features that enhance your satisfaction with living in your home in the long run.
- Square Footage and Home Size
The size of the home directly impacts building costs due to the requirement for more materials, additional labor, and larger Mechanical, Electrical, and Plumbing (MEP) systems. The number of bedrooms, bathrooms, and living spaces also contributes to the total square footage. While custom homes offer flexibility in layout and design, the size of the house still plays a key role in overall affordability.
Land Acquisition Costs in Central Oregon
Before building a home, land must be acquired. Then the land must be cleared, tested, leveled, and excavated to prepare for a safe and stable foundation.
At HiLine Homes, we ensure you have everything you need in one place. Through our extensive network of local subcontractors, your site is evaluated, cleared, excavated, and prepared for construction on schedule.
- Permits and Regulatory Requirements
Before construction begins, homeowners must obtain the necessary building permits, which can vary by city and county in Central Oregon. Permit expenses are often a surprising cost factor; as such, they must be included early in the planning process. Costs for permits can depend on the size of the home, the complexity of the construction, and the size of the required MEP systems.
Without the proper permits, the home’s construction can experience delays, fines, and the requirement to redo completed work, resulting in additional expenses. By working with an experienced home builder, you ensure your home’s construction complies with state and local building regulations.
Labor Costs in Today’s Building Market
Labor typically makes up about 40% of your overall home-building cost, making it one of the most significant factors in your construction budget. In Central Oregon, labor costs can vary depending on the type of trade, skill level, and the current demand in the local homebuilding market.
At HiLine Homes, we simplify the process by providing a dedicated, in-house team of experienced home builders. Your project is supported by a knowledgeable project manager who oversees every stage of construction, from the pouring of the foundation to the final walkthrough. This streamlined, cohesive approach helps ensure your custom home is built efficiently, without the stress of managing multiple contractors on your own.
- Material Costs for Home Building
Materials account for around 60% of the total construction budget. The higher the quality of the materials, the better the home’s durability and design. It also impacts the overall price of the house. By choosing durable, mid-range materials, you get the best balance between long-term value and initial cost.
At HiLine Homes, we offer affordable and quality-driven materials with options to upgrade finishes while staying within budget.
- Custom Home Building Plans and Design Choices
When choosing a floor plan for your home, you can opt for a stock or pre-designed home, or a custom home plan. At HiLine Homes, each one of our home plans includes standard features with reliable durability. However, you can upgrade these features to custom finishes for added home value, aesthetic appeal, and personalization. See our Home Plan Guide to learn more.
- Special Features and Personal Touches
Special features, such as a deck, a garage, or a finished basement, are additional investments that can be built on your lot to increase your home’s value and living convenience.
Home Construction Loan Options for Central Oregon Buyers
Financing a custom home build typically begins with securing the right construction loan, tailored to your specific needs and timeline. While we at HiLine Homes offer diverse financing options (such as up to 100% financing packages) through our approved lenders, here are the most common options available to homebuyers in Central Oregon:
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Construction-to-Permanent Loan:
This loan covers both the land purchase and construction costs, which transitions into a standard mortgage once construction is complete and you’re ready to move in. It’s ideal for buyers looking for long-term financing in a single package. -
Construction-Only Loan:
This loan only covers the construction phase, which must be paid in full once the home is complete, either with cash or a separate mortgage. This is ideal for homebuyers who have already purchased a lot.
Home Construction Loan Options for Central Oregon Buyers
Whether you’re a first-time home buyer or not, building a custom home is an exciting milestone—but like any major project, it’s wise to prepare for the unexpected. While your initial cost estimates offer a solid starting point, real-world construction projects often encounter variables that can increase the final building cost.
In today’s market, the price of materials can fluctuate due to supply chain issues or regional demand. You might choose to upgrade finishes or revise elements of your home design during the build. Weather delays, grading challenges, or shifts in labor availability can also affect the construction timeline and overall cost of building a house in Central Oregon.
To safeguard your investment, we recommend setting aside an additional 10–15% of your total budget as a contingency fund. This cushion allows you to respond to unexpected changes without compromising on the quality, timeline, or vision of your future home.
At HiLine Homes, we’ve refined our custom home building process over nearly 30 years to help families stay on track. With our transparent pricing, detailed planning, and hands-on project management, we work closely with you to minimize surprises and maximize confidence at every step.
Ready to Build Your Dream Home in Central Oregon?
Building a home in Central Oregon is a meaningful investment. Knowing the costs, from square footage estimates to materials and labor, can help you plan confidently. Every home can be different. You make your home uniquely yours with your choices in design and special features. That’s why it’s advisable to work with trusted home builders who you can consult for financing options and who will support you every step of the way.
From our offices in Medford, Redmond, Roseburg, Woodland, and Salem, we believe in making the process transparent, affordable, and centered around your family’s future. Schedule your home consultation and let’s build your future.
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