How Much Does it Cost to Build a House in Oceanside?

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As expressed in its very name, Oceanside sits along California’s Southern Coastline. The city is best known for its palm-filled Harbor Beach and nearby Oceanside Harbor. Because of this, Oceanside quickly became a popular tourist destination. It now offers various water sports and recreational activities, along with historic landmarks and exhibits. One of the city’s most prominent displays is located at the California Surf Museum, which explains the sport’s history and showcases a surfboard collection and exhibit on famous surfers. Other sculptures, paintings, and drawings are displayed at the city’s Museum of Art.

The Cost of Building a Home in Oceanside

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Building one’s personal home is a dream come true for many people. Homeowners can customize anything, from major decisions such as home layout to little details like doorknobs. They can focus on creating a functional and comfortable house for each family member. Additionally, new homes can be more energy-efficient, largely because of upgraded materials, appliances, and systems.

According to data gathered from the online contractor platform BuildZoom (BZ), the national average cost of building a new custom home ranges from $140 to $320 per square foot — around $345,000 to $800,000 for a 2,500-square-foot home. However, housing costs have risen by at least $1,000 across the country, according to the National Association of Home Builders (NAHB). This is due to a multitude of variables, including the COVID-19 epidemic, manufacturing bottlenecks, and labor shortages. The association now estimates that the median new home price is roughly $415,000, which is within BZ’s range.

With an average price of $400 per square foot, Oceanside’s homebuilding expenses are generally within the estimated national range. This value can be as low as $300 per square foot if owners take a value-conscious strategy. Choosing a custom-built luxury home will boost this figure to at least $500 per square foot. An estimated budget of $750,000 to $1,250,000 will be required to create a 2,500-square-foot home in Oceanside.

The values shown here are only estimates and do not represent the final cost of building a home in Oceanside. Given the tough situation the construction industry has yet to resolve, experts advise allocating 15% as a contingency budget. Aside from that, other factors influence total home construction prices, including size, location, materials, level of customization, and site complexity. These factors are divided into two types: hard costs and soft costs.

Hard Costs

Hard costs pertain to the factors involved in the physical building of the home. This includes the construction costs, materials, labor, and landscaping. Extra amenities or home additions are also included in this category, alongside heating, ventilation, and air conditioning (HVAC), electrical, and plumbing systems.

A custom home in Oceanside costs about $160 per square foot on average. This estimate is for basic construction only, including labor costs, foundation, standard building materials, basic finishing, and cleanup. High-end materials, kitchen and bath customization, and the inclusion of extra amenities might raise the price to $200 per square foot. Construction of a 2,500-square-foot home will cost between $300,000 and $500,000, not including site work, land, and other costs.

The cost breakdown is as follows:

Labor fees, as per ZipRecruiter:

Construction Manager: $40 per hour
Framer: $19 per hour
Roofer: $22 per hour
Electrician: $25 per hour
Plumber: $24 per hour
HVAC Technician: $28 per hour

Figure 1. Typical cost breakdown of a single-family home constructed using the conventional method, according to Home Builder Digest.

Soft Costs

Soft costs refer to the fees that go beyond the actual building of the physical home. Usually, these expenses are planned and settled before the construction begins. This category includes fees associated with land acquisition and development, authorizations from the local government, and the overall appearance and layout of the home.

Figure 2. Soft cost percentage and average price range of additional fees, determined from the overall cost of custom home building in Oceanside.

Cost of the Land

The average size of land available in Oceanside is 163,972 square feet, or roughly 3.8 acres, according to recent Redfin listings. In terms of pricing, the average listing price in the city is $1,905,000, or $14 per square foot. The most affordable property is a 126,324-square-foot piece of land that costs $450,000 — around $4 per square foot. The most expensive land, on the other hand, costs $4,300,000 for a 101,060-square-foot piece of land — about $43 per square foot.

Permits and Other Fees

According to the city government, the building permit fees for new single family custom homes in Oceanside are calculated based on size or the total square footage of the project. The following are the fees for each valuation:

There will also be an inspection fee for every plan submitted. Like building permits, it will be determined based on the square footage of the project. The following are the fees for each valuation:

Suppose an aspiring homeowner wants to build a 2,500-square-foot custom home in Oceanside. The total building permit and inspection fee will land at about $5,700 — around $1,970 for the plan check fee and $3,730 for the inspection fees.

Aside from building fees and inspections, every structure in the city is subjected to a fire and water inspection, which also have corresponding fees. These fees are determined based on the total building permit fee. The fire plan checking and inspection fees cost about 20%, while the water plan checking is 15%.

Architecture and Design Fees

Depending on the design factors, architects in Oceanside charge between 13 and 14% of the total construction cost. Assuming the cost of constructing a new 2,500-square-foot home in Oceanside is $400,000, thome’s architectural fees will be between $52,000 and $56,000. Note that this estimate may vary depending on the architectural plans and the specific architect. Some projects require more work and thus, a higher percentage. On the other hand, some architects are more experienced, prominent, or decorated and require a higher fee.

In addition, some architects charge on an hourly basis. Architects in Oceanside charge an average of $40 per hour, according to ZipRecruiter. A typical architectural service will take about 480 to 600 hours to complete and will cost between $19,200 and $24,000. A complete architectural service, on the other hand, may take up to 1,095 hours and will cost roughly $43,800. Again, note that this will depend on the overall architectural plans and the specific architect.

How do Oceanside’s custom home building costs compare to nearby cities?

Building a home in California is one of the most expensive projects. It also has a higher cost of living than the national average, at 49.9% higher. Housing costs have a more significant impact on this value. The state’s home construction costs typically start from $400 to $600 per square foot, sometimes more.

The average basic building cost in California’s largest cities ranges from $148 to $182 per square foot — about $275,000 to $300,000 for a 2,500-square-foot home. As previously stated, the average cost of a basic home in Oceanside is $160 per square foot. The average home building value for each major city is listed below, along with the percentage difference from Oceanside:

Anaheim: $164 per square foot, 2.5% more expensive
Irvine: $160 per square foot, same value
Long Beach: $150 per square foot, 6.25% cheaper
Los Angeles: $164 per square foot, 2.5% more expensive
Riverside: $148 per square foot, 7.5% cheaper
San Bernardino: $182 per square foot, 13.8% more expensive
San Diego: $177 per square foot, 10.6% more expensive

What Leading Custom Home Builders and Architects that Serve the Oceanside Area Say

Written below are insights shared by home builders and architects who serve Oceanside. These refer to the city’s current challenges and trends while also providing more information on the construction industry and housing market.

According to Christine Lampert, principal architect of Lampert Dias Architect, in their 40 years of building and designing, the cost of construction traditionally never goes down. However, there is a possibility of a slight price dip, especially with recessions, before going back up. Lampert predicts that there may be a minor recession by fall wherein lined-up projects will decrease. Today, the firm is extremely busy as many consider the area to be highly desirable and therefore choose to relocate, particularly in the Southern Oceanside and Northern San Diego County area.

President of Pence Building Enterprises, Evan Pence, shared that labor and material costs are consistently increasing due to inflation. Issues in supply and demand push the material prices up, while higher costs of living with the lower purchasing power of the dollar may well be the reason behind the increase in labor fees. Contractors need to pay their workers more to keep up with the day-to-day expenses and services, which are then passed down to clients. Pence expressed that it is relatively difficult to say what the industry’s future will be like. But as the current trend goes, the recent interest hikes seem to be slowing down mortgage applications while new home building projects start. If this trend continues and the demand falls, the supply chain issues may ease and lessen material costs.

The Future of Oceanside’s Residential Construction Industry

Aside from the previously mentioned issues by builders and architects, the housing inventory also plummeted over the past two years. This, coupled with the uncontrollable demand for homes, skyrocketed home selling and building prices, as well as home values. According to Zillow’s Home Value Index, single family homes in Oceanside are currently valued at $910,000, a steep increase from pre-pandemic values of $560,000 — about a 63% increase.

Oceanside’s government has laid out future plans to develop numerous housing projects to combat the growing demand for housing and lack of inventory. One of the city’s lined-up projects is the Belvedere Mixed-Use Project. It is a 1.5-acre multi-leveled mixed-use property that is proposed to include 65 residential units, along with 28 work-live units, 7,100 square feet of commercial area, 62,000 square feet of public and private open space, and various site amenities. Another project is the city’s extensive redevelopment plan known as the “City Mark Project.” This project aims to improve over five blocks of space or about 5.36 acres, where 30% of it will become an open space for residents. Completion of this plan will produce 231 residential units, 124 hotel and office rooms, 904 parking spaces within the area, 172 parking spaces off-site, and 42,259 square feet of visitor-serving commercial spaces.

Additionally, the local government focuses on improving the public’s everyday life, especially in becoming an accessible city. Various city improvement projects are currently ongoing, most of which will be completed before 2022 ends. These include Americans with Disabilities Act or ADA-compliant spaces, city street overlay, storm drain maintenance, beach area improvements, and various bridge seismic retrofitting.