Understanding home design and construction costs

What will it cost to get my dream home?

Just as the idea of what makes a dream home varies from person to person, the costs to bring those dreams homes to life vary too. 

To help you get a grasp on how construction costs for remodeling and custom home projects add up — and what you can expect, the information below provides some basic details and resources. 

However, this information can only help you understand costs from a ballpark perspective. If you are at the point where you are considering a project, the best step forward is to schedule a consultation with our team. 

Before we meet in person, we’ll discuss the probable costs for your proposed renovation, including construction costs and architectural fees, so that you can evaluate your options and determine whether the project is within your budget or not.

Architectural and interior design fees can vary widely due to many factors, including the architect’s experience and expertise, the scope of work, and the level of service provided. 

The total architectural fee for a major remodeling or new custom home project can fall in the range of 12 – 17% of the cost of construction, plus expenses. This does not include interior selections.

The value of hiring an architect to guide this process is that we help you understand the multitude of architectural and design choices, specifically those that have the greatest benefit for your specific. needs, instead of those that can add cost and not value. We design your home or addition to fit your site and your family’s needs over time.

It’s a challenge to explain how much it will cost to remodel your home, but we almost always have to (gently) tell people that construction costs are higher than they think.

For example, in 2025, a sunroom addition for a home in the Ann Arbor and Plymouth area might cost about $140,000, while a large addition with interior remodeling might be closer to $600,000. A whole house remodeling project could cost upwards of $900,000.

While we believe your major home remodel should be primarily focused on making it the home you'll want to live in for years to come, we realize life changes and homes need to be sold. If that sounds like a possibility, we suggest reviewing Remodeling Magazine's Cost Vs. Value report as a tool to help you understand the "resale value" of remodeling as you determine a budget for your project. This report compares the average cost for several popular remodeling projects with what you can expect for a return on your investment in the Metro Detroit area.

When budgeting for the costs of designing and building a new completely custom home, architects and builders typically refer to the cost per square foot. 

To understand the range of possible costs, let’s look at two of the most common types of new construction homes: A developer-built home and a fully-custom home from your own architect and builder.

In 2023, new homes from developers in Southeastern Michigan cost approximately $200 to $365 per square foot. These “production” or “semi-custom” homes in single-family communities are developed with cost-efficiency in mind. Developers build many homes simultaneously, use standardized plans, buy materials in bulk, and rely on subcontractors moving from lot-to-lot. As a result, the lower cost per square foot reflects these economies of scale.

Customization options in developer-built homes are often limited to finish and fixture upgrades, such as cabinetry, countertops, and flooring. Some developers may allow small structural changes, like adding a door or closet to create a guest room.

Tailored to your vision, inside and out, creating a truly custom home with your own architect and contractor is likely to cost $450 to $600 per square foot (or more), reflecting a high level of personalization and detail. Every aspect of the home is designed to your specifications, from architectural style to finishing touches. Unlike semi-custom homes, a fully custom home is built from the ground up based on your lifestyle and future needs.

In a custom build, you’re not just choosing finishes; you’re designing spaces uniquely suited to how you live. This process involves a collaborative journey with your architect and builder who bring your vision to life. The result is a home that’s uniquely yours, crafted with quality and flexibility beyond what a developer-built home can offer.