At first glance, the answer seems like it should be yes. But when you dig deeper into how construction pricing really works, the reality becomes much more nuanced.

The Truth About a Builder’s First Estimate

Here’s something most homeowners don’t realize:
A builder’s first estimate is often a reflection of their most recent project.

It’s not uncommon for builders to start with a previous job, copy the framework, and adjust numbers based on size, scope, and finishes. In many ways, early estimating can feel like a refined version of “copy and paste.”

So naturally, this raises a fair question:
If builders are already doing this, why couldn’t AI do the same thing—only faster?

Where AI and Automation Make Sense

There are definitely areas where automated estimating tools—and even AI—can be incredibly effective.

Think about measurable, repeatable components like:

• Paint (cost per square foot)
• Tile (based on square footage)
• Hardwood flooring
• Drywall
• Trim (linear feet)

These are quantifiable inputs. If you know the dimensions, material selections, and labor averages, an automated system can generate a solid baseline number.

Add in builder-specific inputs like:

• Markup percentages
• General contractor (GC) fees
• Project management costs

…and suddenly you have a system that can produce quick, consistent estimates.

In theory, this also allows homeowners to compare builders side-by-side more easily—something the industry has historically struggled with.

The Problem: Construction Isn’t Just Math

Here’s where things start to break down.

Builders are only as good as their worst subcontractor.

Two builders can input the exact same numbers into an AI system and still deliver vastly different outcomes.

For example:

• One builder may use a painter charging $2.00 per square foot
• Another may work exclusively with a high-end painter charging $5.50+ per square foot

Both estimates might look similar on paper—but the quality, durability, and finish will not be the same.

AI can replicate numbers.
It cannot replicate craftsmanship, consistency, or accountability.

Not All Materials—or Installations—Are Equal

Even within the same category, complexity varies.

Take tile installation:

• A standard 3″ x 12″ subway tile is relatively straightforward
• A large-format tile requires:
  • More precise layout
  • Different mortar techniques
  • Higher skill level
  • Often more material waste

An automated system might price both based on square footage—but the labor, time, and expertise required are completely different.

Without understanding the how, not just the what, automated estimates can miss the mark.

The Missing Piece: Pre-Construction Process

One of the biggest gaps in automated estimating is something most homeowners don’t initially consider:

The builder’s pre-construction process.

Every builder approaches this differently:

• Some invest heavily in planning, selections, and detailed scope development
• Others move quickly into construction with less upfront refinement

This impacts:

• Accuracy of the estimate
• Number of change orders during construction
• Overall project timeline
• Final cost vs. original budget

AI can generate a number—but it doesn’t explain the process behind it. And in custom home building, the process is often just as important as the price.

So… Will Automated Bids Work?

Yes—and no.

Automated bids can be a powerful tool for:

• Establishing rough budgets
• Comparing general cost ranges
• Understanding how different features impact price

But they fall short when it comes to:

• Evaluating quality of labor
• Accounting for construction complexity
• Understanding a builder’s process
• Predicting the real-world execution of a project

The Bottom Line

AI can help you get a number.
A great builder helps you understand what that number actually means.

When planning your custom home, don’t just ask:

“What does it cost?”

Ask:

• Who will be doing the work?
• How detailed is the planning process?
• What level of quality is being assumed?
• How are changes handled along the way?

Because at the end of the day, your home isn’t built by an algorithm.
It’s built by people—and that’s where the real difference lies.

If you’re considering a custom home or major renovation, SG Home Builders is here to walk you through both the numbers and the process—so you can make confident, informed decisions from day one.

The post Will Automated Bids Work for Your Home Building Estimate? appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

National Trends: Costs Likely Moderate but Not Drop Dramatically

Industry forecasts don’t point toward a significant decline in overall construction costs in 2026. Most projections suggest continued moderate increases rather than steep drops:

• Analysts expect material price escalation in the range of 2%–6% this year, a more balanced rise compared to recent volatility but not a true decrease. Factors like labor costs and tariffs continue to support upward pressure. 
• JLL reports that material prices were roughly 4.2% higher in 2025 than in 2024, and under current conditions longer-term tariff impacts could still push aggregate costs up over 8% unless policy changes occur. 
• Forecast panels projecting construction spending for 2026 show modest gains (about 1.0% nationally), which may not keep pace with inflation adjustments. 

Put simply: although you may see slower cost increases or stabilization in select materials, an outright drop in construction costs across the board is not widely forecast for 2026.

Why Costs Aren’t Dropping Quickly

Several factors contribute to persistent cost increases:

1. Tariffs and Trade Policy

Tariffs on imported construction materials like steel and lumber continue to add cost to homebuilding with many builders estimating these add thousands of dollars per home. 

2. Labor Shortages and Wage Growth

Across the U.S., construction labor costs remain elevated due to skill shortages and increasing competition for tradespeople and this is a trend unlikely to reverse quickly in 2026. 

3. Supply Chain Volatility

While some material prices, like lumber, have shown relative stability, others like metal products remain volatile. These unpredictable swings can be challenging for builders to confidently forecast costs far in advance. 

So, Will Costs Eventually Come Down?

Even though 2026 may not bring a dramatic decline, there are reasons to be cautiously optimistic: 

• Some experts anticipate relative stabilization in certain materials and labor markets, reducing wild price swings seen in prior years. 
• Broader economic trends like easing mortgage rates and even multi-generational living are making custom home building a more attainable dream.

What This Means for Chicago Area Home Builders and Custom Homes

For homeowners considering a custom build in 2026, the key isn’t expecting costs to fall but planning for cost control and focusing on value:

Choose a Builder Who Manages Risk Well

Top-tier builders like SG Home Builders don’t just build custom homes, they manage cost variability proactively, with:

• Strategic material purchasing ahead of price spikes
• Strong relationships with suppliers to reduce supply-chain risk
• Experienced estimation and scheduling to minimize change orders

This level of planning becomes especially important in markets like the Chicago area, where labor costs tend to be higher and complexity is greater than national averages. 

Focus on Long-Term Value When Planning Your Custom Home in Chicagoland

Even if costs remain somewhat elevated in 2026, custom homebuilding can still offer better long-term value than competing on resale inventory, especially for homeowners who care about design, energy efficiency, and personalized features. A custom design tailored to your lifestyle and site can reduce future renovation costs and enhance livability for decades.

Bottom Line for Building A Custom Home In 2026

Construction costs are unlikely to fall sharply in 2026, but the rate of escalation may be more palatable. For anyone planning to build a custom home in Chicagoland, the goal should be stability and smart planning and not just chasing short-term cost drops that may never come.

And when it comes to navigating these uncertainties, partnering with seasoned custom home builders like SG Home Builders ensures your project stays on track, on budget, and built to last.

The post Will Construction Costs Go Down in 2026? Here’s What Chicago Area Home Builders Are Watching appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

Based on what we’re seeing across the local market, here are SG Home Builders’ predictions for the year ahead.

________________________________

Construction Costs: Continued Increases with More Predictability

While the dramatic price swings of recent years have eased, rising construction costs remain a reality in Naperville-area residential building. We anticipate 10–15% annual increases in material pricing, impacting framing lumber, engineered products, appliances, and interior finishes.

The key difference today is stability. Supply chains have normalized, lead times are more reliable, and pricing has become easier to forecast. That predictability allows homeowners to plan more confidently—but it does not eliminate upward cost pressure, especially as skilled labor remains in high demand across DuPage County.

________________________________

Expect Heavy Activity in Q2 and Q3

For the second year in a row, many homeowners paused project decisions during Q4 and early Q1. While understandable, this delay creates a compression of demand into the middle of the year.

As a result, we expect:

• Extremely high construction activity in Q2 and Q3
  
• Increased competition for trusted subcontractors
  
• Longer timelines for permits and municipal approvals in Naperville and surrounding communities
• What is normally a gradual spring ramp-up is shaping up to be a full-speed surge.]

________________________________

A Spring Bottleneck for Foundations and Early Construction

Extended cold weather lasting through February has delayed foundation work across the region. This has created a backlog of projects waiting to break ground.

• As conditions improve, homeowners should anticipate:
  A rush to excavate and pour foundations
  Builders competing for scheduling priority
  Limited availability for early-stage construction work
  

For clients planning new construction or major additions in DuPage County, early pre-construction planning will be critical to staying on schedule.

________________________________

Home Additions Continue to Lead Demand

Home additions remain one of the strongest segments of the Naperville construction market. Since 2022, we’ve seen consistent demand from homeowners who want to upgrade without giving up historically low 2–3% mortgage rates secured in 2020–2021.

What’s changed recently is:

• Significant home equity growth, giving homeowners more financial flexibility
  Mortgage lenders offering competitive construction loan options to stimulate activity
  Together, these factors make additions an increasingly attractive alternative to moving.

________________________________

Our Take as a Naperville Custom Builder

The market remains strong—but success depends on realistic expectations, thoughtful planning, and early engagement. Rising costs, seasonal bottlenecks, and high demand make pre-construction clarity more important than ever.

At SG Home Builders, we help homeowners throughout Naperville and DuPage County navigate these realities with transparency and detailed planning.

________________________________

Ready to Talk About Your Project?

If you’re considering a custom home, renovation, or addition in Naperville or DuPage County, we’d love to start the conversation.

Schedule a consultation with SG Home Builders today to discuss your goals, timeline, and budget—and see if we’re the right fit for your project.

The post SG Home Builders’ Annual Industry Outlook: What to Expect in Residential Construction in Naperville & DuPage County appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

This is because the cost difference stems from thousands of small, deliberate choices in design, structural requirements, and construction execution. Grasping the reasons behind these cost fluctuations is crucial for selecting custom home builders in Naperville, IL, who can deliver a quality residence built to last.

Square Footage is Just a Number

Consider two containers of identical size. One is just an empty cardboard box, and the other is an intricately made mahogany chest. Both take up the same amount of space, but their true value is worlds apart. The same principle applies in home construction. Square footage measures size, not inherent value or quality.

The key elements that really drive the expense are the level of craftsmanship, the installed systems, and the quality of materials used. A house outfitted with standard, mass-produced vinyl windows and basic forced-air heating will naturally require a smaller budget than one featuring specialized architectural glass, a premium slate roof, and a high-efficiency geothermal HVAC system. 

The Hidden Cost of Coordination

Many people overlook the time factors that directly impact the final project cost. Constructing custom homes in Naperville requires navigating stringent local building codes and obtaining the necessary zoning permits. A builder who speeds through this initial pre-construction phase might offer an appealingly low quote upfront, but shortcuts frequently result in expensive and disruptive change orders later in the process.

Quality construction demands patience. Executing fine details, like perfectly flush-mount baseboards or sophisticated smart home wiring, requires extensive and meticulous site supervision. Reputable custom home builders in Naperville invest significantly in expert project management. They ensure these critical details are ironed out completely before physical construction starts, which acts as the best safeguard for the client’s budget against costly poor planning.

What Inexperienced Builders Leave Out

A major factor contributing to price variation is what is intentionally omitted from the initial project bid. Builders lacking experience often present artificially low bids by relying on allowances for interior finishes that are completely unrealistic or by simply excluding essential site preparation work. They might fail to account for specific site challenges, such as unexpected soil conditions that necessitate highly engineered foundations.

In contrast, a truly experienced builder meticulously plans for almost every contingency. While their starting price may appear higher initially, it represents a far more accurate reflection of the entire project’s comprehensive scope. Transparency like this guarantees that the client will not be blindsided by substantial, unforeseen fees halfway through the building process.

Contact Us for Your Custom Home Build in Naperville, IL, Today

If you are looking for a partner who values quality and architectural integrity, SG Home Builders is here to guide you. We understand that your home is more than just square footage; it is the backdrop for your life.

Don’t settle for misleading estimates. Contact SG Home Builders online today to schedule your discovery call and learn how we can bring your unique vision to life.

The post Why Two Custom Homes in Naperville With the Same Square Footage Can Cost Very Different Amounts appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

Let’s just say it — this is the worst comment a home builder can hear.

Unless you’re flipping distressed homes for a quick turnaround, the idea that you’re going to “get back what you put in” on a renovation or custom build is pure fantasy. And here’s the kicker: if you’re reading this and thinking, “Well, maybe I could…” — this matters to you. Right now. Because the decisions you make before you start building or renovating are the ones that will define your home and your experience for years to come.

The Harsh Truth: You Don’t Create ROI in Luxury Real Estate — You Create Lifestyle

High-end neighborhoods aren’t about financial efficiency. Buyers pay for location; to be in towns like Naperville, Hinsdale, Oak Brook, Glen Ellyn and most of DuPage county.  Teardown lots? Same story. Even if you think you can outsmart the market, the lot alone is already at a premium.

So why does this matter to you? Because your expectation of “getting your money back” could set you up for frustration, disappointment, and decisions that don’t match reality. The moment you start trying to chase ROI in a luxury renovation, you lose focus on what really matters — creating a home that fits your life.

You’re Not Building Equity — You’re Building Exactly What You Want

Luxury builds and renovations are about passion, not profit. Brass finishes, imported tile, indulgent appliances are all things you don’t install because they make financial sense. You do it because they make you feel something every day.

Here’s the challenge: Are you willing to stop obsessing over spreadsheets and start thinking about what will truly make your life better in this home? That’s where the real value lives; not in resale numbers, but in living the lifestyle you’ve dreamed of.

Why Now?

The earlier you understand this, the better your project will be. You can avoid costly mistakes, misaligned expectations, and weeks of stress that come from trying to force financial math onto something that isn’t meant to be an investment. Knowing this now allows you to plan smarter, communicate better with your home builder, and design a home you’ll actually love.

The Offer: Let’s Build Something You’ll Love

At SG Home Builders, we help clients navigate this reality from day one. We focus on:

• Making sure your design choices align with how you actually live
• Prioritizing investments that improve your experience, not just your spreadsheet
• Guiding you through realistic timelines, budgets, and expectations

Because at the end of the day, we don’t just build homes. We build spaces you’ll love, spaces that feel like you. And that’s worth more than any ROI calculation could ever tell you.

Ready to Stop Chasing ROI and Start Loving Your Home?

If you’re building or renovating a home and tired of trying to make the numbers work, it’s time to focus on what really matters; a home designed for your life, your style, and your happiness.

At SG Home Builders, we guide clients through every decision, from finishes to floor plans, so your home isn’t just “worth it” on paper, it’s worth every moment you live in it.

Reach out today to schedule a consultation and discover how we turn your vision into a home you’ll actually love. Stop worrying about resale. Start designing for life.

The post The Worst Thing a Home Builder Can Hear appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

Why Multigenerational Living Is Surging in Chicagoland

Multigenerational households are no longer a niche trend. National Association of REALTORS® data shows 17% of homes purchased in 2024 were multigenerational with cost savings (36%) and care for aging parents (25%) among the top reasons. That share has climbed sharply over the last decade. 

Zooming out, Pew Research finds nearly 60 million Americans live in multigenerational homes, or roughly 18% of the U.S. population. Families cite elderly caregiving, childcare, and financial resilience as key drivers – needs that are equally relevant across Chicagoland’s suburbs. 

Bottom line: In a region with rising housing costs and busy dual-career households, multigenerational layouts solve for budget, care, and flexibility while keeping loved ones close. 

“Is a Multigenerational Home Still Considered a Single-Family Home?”

Usually, yes if it remains one dwelling unit. In Chicago’s RS (Residential Single-Unit) districts, the code’s purpose is to accommodate detached houses on individual lots (one dwelling unit). A well-designed multigenerational plan can keep a single kitchen as the primary and maintain the dwelling as single-family under RS zoning. Each building department around the Chicago suburbs will have different codes to abide by.  Generally speaking, as long as there is not a separate entrance or a wall that blocks one side completely from each other, the home can still be considered a single family home. 

If you want a completely independent second unit (with its own kitchen and entrance), you’re approaching ADU territory. Chicago and the Chicago suburbs, has been expanding and refining its Accessory Dwelling Unit ordinance (coach houses, basement/attic conversions), with program rules and eligible zones evolving—worth reviewing early in design. Recent City Council actions have explored broader ADU expansion but with neighborhood-by-neighborhood limits. Translation: you have options, but check the latest rules before committing to a design. 

SG Home Builders can help coordinate with your municipality and architect so your plan hits your family goals and zoning definitions.

How Much Does It Cost to Build a Multigenerational Home Here?

Short answer: it depends on size, finish level, and complexity (separate suites, baths, sound control, elevators, etc.). Our 2025 custom home pricing guide for the Chicago area lists rough starting ranges from the low $400’s per sq. ft. for standard finishes, with higher-end projects rising from there. Use these as ballpark planning ranges, then refine with an itemized bid. 

A structured preconstruction process with our team turns lot feasibility, programming, and detailed spec sheets into a clear scope and expected pricing. See our perfected design-build process. 

Why Multigenerational Homes Are “Future-Proof”

Designing for multiple generations also means designing for change. Today’s “boomerang” college grad is tomorrow’s young professional; a healthy parent today may need a walker or wheelchair later. Thoughtful layouts let spaces adapt without remodeling:

• Universal Design basics: no-step entries, one-level living zones, 32–36″ doors, and 36–42″ halls support strollers, walkers, and wheelchairs—comfort for all ages, not just seniors. 
• Flexible suites: a main-level bedroom with an en-suite bath can be an in-law suite now, an office/guest space next year, or a recovery suite after surgery.
• Acoustic privacy: resilient channels, sound-rated doors, and strategic wall assemblies help different routines coexist (night-shift nurse, nap-time toddler).
• Smart home & health tech: zoned HVAC, leak/CO detection, aging-in-place alerts, and lighting scenes enhance safety and independence.

NAR’s research underscores that multigenerational buying is at record highs, driven by both economics and caregiving—trends that point to lasting demand. 

What Should Be Included in a Multigenerational Home? (Checklist)

Privacy & Togetherness

• Secondary suite (bedroom, bath, sitting area); add a coffee bar or kitchenette if zoning allows within single-family parameters.
• Separate entrance for discretion and easier comings-and-goings (where permitted).
• Two laundry zones or stacked units in the suite to reduce traffic.

Accessibility & Comfort

• Elevators – A great option to provide separate living quarters is to have the basement be complete with a secondary primary and a full kitchen. Most families are concerned with steps to the basement and an elevator can solve that issue. 
• No-step entry and at least one zero-threshold shower.
• Wider doors/halls (32–36″/36–42″).
• Reinforced blocking for future grab bars (even if you don’t install them now).
• Universal design with lever handles, rocker switches, well-lit stair treads, and generous task lighting. 

Quiet & Control

• Enhanced soundproofing between suite and main living areas.
• Zoned HVAC with independent controls for comfort and energy efficiency.

Storage & Flow

• Dual pantries/extra cold storage for big family meals.
• Drop zones sized for more people (lockers, bench, charging).
• Flexible loft/bonus room that can rotate between homework hub, playroom, or TV lounge.

Outdoor Living

• Shared courtyard or deck with private seating nook for the suite—together when you want it, privacy when you need it.

Chicagoland Zoning Notes to Know (High-Level)

• Single-family (RS) districts are intended for one dwelling unit per lot—our team of architects can keep the plan compliant while still carving out a private suite. 
• ADUs in Chicago (granny flats, coach houses, basement units) are expanding but regulated; rules vary by zone and ward, and recent changes include limits in some areas. Coordination up front avoids surprises. 

SG Home Builders tracks this ever changing landscape to ensure your multigenerational home meets all code requirements. With our entirely inhouse team, home owners building their custom home can relax knowing that our architect, project manager, and designer work closely every day avoiding confusion and lost time. 

Ready to Design Your Multigenerational Home?

SG Home Builders specializes in custom layouts that balance privacy and togetherness, all while navigating Chicagoland’s zoning and permitting. Whether you need a discreet in-law suite, future-ready accessibility, or a potential ADU path down the road, we’ll map the right solution on budget, on code, and built to last.

Let’s start your plan. Contact SG Home Builders to schedule a design consultation.

FAQs

Is a multigenerational home still a single-family home?

Yes—if the design remains a single dwelling unit (typically one primary kitchen and unified utilities). Adding a fully independent second unit (own kitchen/entry) can trigger ADU or multifamily rules depending on jurisdiction. We’ll help you plan the right path. 

How much does it cost in Chicagoland?

Plan with ranges, then refine via specs. We Suggest starting with a similar budget as you would for a custom home.  With Multigenerational living we typically know there will be a second kitchen and possibly more main level square footage.  For this reason we advise our clients to do their analysis in the low $400/ per sq. ft. range. Premium finishes, accessibility upgrades, and dedicated suites will increase costs. See our latest guide “What’s the Most Expensive Part of Building a New House? (2025 Guide)”.

Why is a multigenerational plan “future-proof”?

Because it adapts: universal-design basics, a main-level suite, and flexible rooms serve changing life stages—caregiving, boomerang kids, aging-in-place—without major renovations. The national trend line suggests the need will continue to grow. 

The post Building Multigenerational Homes in Chicagoland (2025 Guide) appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

Here’s how we deliver spot-on estimates and build relationships that last:

1. Understanding the Scope Beyond the Plans

A set of architectural plans is just the starting point. True accuracy comes from diving into the details that plans might miss. At SG Home Builders, we review:

• The specific layout and design of your home

• The site plan, including grading, utilities, and access

• Any details the architect may have overlooked

Our foundation as a company comes from renovation work. Often, we don’t even have plan sets to work from at the start. We have to be creative, see the big picture, and anticipate hidden costs and that’s what makes our numbers accurate from day one. By examining these factors early, we ensure your project runs smoothly with no surprises down the road. Our meticulously built design-build process is more than just a plan of action, it’s a program that we’ve perfected over the decades.

2. Understanding Our Clients

We aren’t order-takers; we’re order-makers. This isn’t a fast-food operation where we simply “add more to your order” when asked. We take the time to understand your “why” — your vision, your priorities, and the reasoning behind every choice.

It’s easy to build a home by just giving someone what they think they want. But after decades of experience building custom homes in the Chicago suburbs, we know that what clients ask for and what they truly need aren’t always the same. By understanding your goals, we can guide you to decisions that match your real vision ultimately leading to a home you’ll love for years to come.

3. Having Difficult Conversations

One of the hardest parts of running a great business is having difficult conversations, especially in custom home building. Many builders avoid these discussions until it’s too late, leaving clients frustrated and projects delayed.

At SG Home Builders, we address potential budget or design issues upfront. If your budget doesn’t align with your vision, we’ll tell you honestly and early. It’s not always easy to hear, but it prevents bigger headaches later and builds a foundation of trust that lasts long after the project is complete.

4. Constantly Updating Market Conditions

A busy, engaged builder is an informed builder. Prices for materials, labor, and permits fluctuate constantly. We track these changes in real-time, not six months after the fact.

By staying ahead of the market, we can prepare for potential cost increases, adjust estimates proactively, and shield our clients from surprises. You get the benefit of a builder who’s watching the market minute by minute, while you focus on planning your dream home.

Why Does This Matter to You?

If you’re reading this, you’re likely asking yourself: Why should I care about accurate estimates and upfront honesty?

It comes down to two things: financial planning and the right team to execute your vision. Accurate estimates allow you to plan your budget with confidence, so your dream home doesn’t turn into a financial headache. Combined with award-winning contractors who anticipate challenges and deliver quality work, you can achieve the home you’ve always envisioned without surprises.

Take the Next Step

If you’re comparing new home builders in the Chicago suburbs, don’t settle for guesswork. Choose a partner who delivers clarity from the very first conversation. Contact us today to start your custom home journey and to get a clear breakdown of typical budgets, cost categories, and pro tips to avoid hidden expenses.

The post The Number One Reason I Lose Bids — and Win Lifetime Clients: Spot-On Estimates appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

Interior Finishes: The Top Cost Driver

NAHB’s latest Cost of Construction Survey (survey conducted in 2024) finds interior finishes account for roughly 24% of total construction costs. That’s your drywall, interior doors and trim, flooring, cabinets, countertops, painting, hardware, and so much more. With thousands of square feet to complete, it’s easy to see why costs add up so quickly. 

Save smart: lock selections early, standardize finishes where possible, and avoid last-minute change orders. Our Design-Build Process folds design and construction together so specs match budget before we break ground. 

Major System Rough-ins: Hidden but Huge

Mechanical, electrical, and plumbing rough-ins are the second largest expense bucket accounting for roughly 19% of construction costs. Layout choices, fixture quality, and energy-code requirements all influence this line item. Opting for higher-efficiency HVAC, ERV/HRV ventilation, or smart controls may increase upfront cost but can cut operating costs and improve comfort.

2025 Illinois Energy Code:

• The 2021 Illinois Energy Conservation Code took effect Jan 1, 2024 statewide, tightening air-sealing, insulation, mechanical efficiency, and blower-door testing. These new codes have caused some cost inflation for custom home builders in Chicagoland. 
• City of Chicago projects follow the 2022 Chicago Energy Transformation Code (based on 2021 IECC) with city-specific add-ons (e.g., solar-ready roofs). Factor these into MEP design and budgeting. 

Framing: The Bones Of Your Custom Home

Framing accounts for 16–17% of construction cost and includes floor systems, walls, roof, and sheathing, plus labor. In 2025, lumber and metal prices remain volatile; lead times and tariffs can ripple into bids. Proper framing is where long-term durability is won or lost. Getting walls plumb, spans engineered, and openings flashed correctly pays off in finishes and energy performance later. 

Lumber Prices YoY September 2025: According to NHAB research, as of September 5th, 2025, composite lumber is down roughly 3% YoY “reaching its lowest level since August 2024” while soft lumber is 2.8% higher than it was last year. With looming tariffs, labor costs on the rise, and other external factors, lumber prices change almost daily. 

Exterior Finishes: Making Your Curb Appealing

Exterior finishes (siding/brick/stone, roofing, exterior trim, and windows) represent 13% of construction costs. With Chicagoland’s versatile weather, it’s important to work with trusted and local custom home builders that understand the climate and the right materials to use. 

Is a metal roof right for my custom home in Chicagoland? With beautiful Fall weather, father winter quickly comes in behind. Chicagoland’s freeze/thaw winters can take a toll on your homes roofing system. Consider installing a metal roof that is built to withstand harsh winters and Spring winds. 

Foundations & Basements: Big Decisions Below Grade

Foundations sit near 10–11% of construction costs on average but can vary greatly. In the Chicago suburbs, many owners choose deep-pour basements for ceiling height and resale value. Deep-pour basements offer great additional living or storage space, but deeper excavations, taller walls, engineering, drainage, and insulation add cost. Good waterproofing and drainage are non-negotiable: think perimeter drains, sump systems, and capillary breaks. 

Site Work & The Lot: The “Before You Build” Costs

Site work is roughly 7–8% of construction cost and includes things like surveys, soils reports, demolition, tree protection, erosion control, temporary utilities, grading, and utility tie-ins. That’s separate from the finished lot itself, which NAHB reports at 13.7% of the total sales price in 2024 (down from 17.8% in 2022). The lot you choose can swing budget more than any finish—tight setbacks, utility relocations, or stormwater rules can add real money. 

For a deeper dive on permits and process, see our Illinois New Home Construction FAQ. 

What Rising Costs Mean for Your 2025 Custom Home Building Budget

• Construction now comprises a record 64.4% of the average home’s sale price (up from 60.8% in 2022). That makes early cost discipline critical: finalize scope, pick finishes decisively, and let design drive the budget not the other way around. 

Where Homeowners Overspend (and How to Avoid It)

1. Selections sprawl. Ten different tile selections across bathrooms sounds fun until it compounds labor complexity. Standardize where possible; upgrade a few focal areas.
2. Late changes. Change orders cascade: re-design → re-price → re-schedule → re-install. Finalize key decisions during pre-construction.
3. Under-scoped mechanicals. Right-sized HVAC with proper duct design avoids comfort complaints and rework.
4. Skipping mockups & samples. Approve stain, grout, and paint sheens before crews mobilize; it saves time and touch-ups.
5. Ignoring maintenance. Choose materials for Chicagoland’s freeze-thaw cycles and UV—lower lifecycle cost beats the cheapest bid.

A Realistic 2025 Build Path (Step by Step)

• Discovery & Budget Fit. Align goals, wishlist, and budget range. Start with our Design-Build Process. 
• Pre-Construction Agreement. Plans, engineering, soils, surveys, and permit road-mapping.
• Selections & Value Engineering. Lock the finish palette that fits budget; value-engineer structure & systems before bids go out.
• Permits & Scheduling. Coordinate municipal requirements and inspection cadence.
• Build & QA. From excavation and foundation to punch list and warranty, our project managers keep you informed with clear milestones.
• Move-in & Aftercare. We stand behind our work and support you through warranty and seasonal maintenance. See Illinois New Home Construction FAQ for timelines and what to expect. 

FAQ (2025)

What single area tends to surprise owners the most?
Interior finishes. Individually they seem small; together they’re the biggest share of construction cost in 2024/2025 data. Plan finishes early and stick to them. 

Does Chicago’s energy code change my budget?
If you’re building in the City of Chicago, the CETC adds requirements (e.g., solar-ready) on top of the 2021 IECC framework. Outside the city but within Illinois, the 2021 IECC applies statewide for permits filed Jan 1, 2024 or later. Both can affect envelope and mechanical costs.

Is the lot or the house more expensive?
Both matter. The lot (finished) averaged 13.7% of the total sales price in 2024, but difficult sites can push site work up. Evaluate utilities, drainage, setbacks, and tree/soil conditions before you buy.

Ready to talk through your build?

Set up a free discovery call and we’ll map your goals to a realistic 2025 budget and timeline. Contact SG Home Builders or call 847-602-7641. 

The post What’s the Most Expensive Part of Building a New House? (2025 Guide) appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

The True Cost of Energy Code Compliance

When we sit down with clients to talk about project costs, one of the first surprises they face is how much of the budget is eaten up by energy code compliance. Why?

1. Over-Insulation Requirements

Even for small additions, current codes often require higher R-values than the rest of your older home. This creates an energy-efficient “bubble” that doesn’t reflect real-world energy use and drives up material and labor costs unnecessarily.

2. Expensive Windows and Doors

Modern codes require low U-factor or triple-pane windows and doors. While they’re energy-efficient, they can add thousands of dollars to your budget, especially when not originally part of the design.

3. Mandatory Testing and Documentation

From blower door tests to thermal inspections and certified reports, the administrative burden has grown dramatically—along with your bill. These requirements didn’t exist in most builds just a few years ago.

Real-World Examples That Break the Bank

At SG Home Builders, we’ve seen these issues affect real projects. And unfortunately these aren’t isolated cases, they’ve become the norm in today’s construction environment.

New Construction R-Value Adjustment: On a recent custom home, the Building Department required exterior walls to achieve an R-30 value. With standard 2×6 walls, the only way to meet this was adding closed cell spray foam, which more than doubled the original insulation quote. A single code adjustment cost thousands and wasn’t even in the original design scope.

Garage Conversion to Living Space: On another project, we converted an existing garage into living space. The roof framing was 2×6 rafters, but the code demanded an R-39 insulation factor. To achieve this, we had to furr down the rafters and add spray foam insulation, adding unexpected material and labor costs that ballooned the budget.

Does It Really Make Sense?

Yes, building a highly insulated, airtight home is beneficial in a vacuum. But when you’re attaching a new addition to an older structure, these stringent requirements often force you to over-invest in one small part of your house while ignoring the bigger picture. The result? A bloated budget with minimal practical impact on overall efficiency.

How This Impacts Your Project

We’ve seen budget overruns of 10–20% directly tied to energy code requirements alone. Homeowners come in excited to build a new master suite or open-concept kitchen, only to face sticker shock when we add the line items for high-performance insulation, triple-pane windows, and specialized air-sealing measures that weren’t in the original vision.

And the worst part? These upgrades are mandatory. Even if you don’t care about ultra-efficient insulation in your new sunroom, the code doesn’t give you a choice.

What You Can Do to Stay Ahead of the Energy Code

While we can’t change the energy code, there are ways to plan smarter and minimize budget pain.

• Start with code in mind. Don’t wait until the permit phase—understand your obligations during design.

• Simplify your layout. The right design choices can help reduce or eliminate expensive compliance requirements.

• Work with a pro. At SG Home Builders, we’ve helped dozens of Chicagoland homeowners navigate these rules efficiently.

The Bottom Line

Energy efficiency is important, but when energy codes are applied without context, they can turn an exciting project into a budget nightmare. The key is partnering with a builder who understands how to integrate these requirements without letting them derail your vision.

If you’re considering an addition or remodel, let’s talk early—before the energy code blows your budget apart.

Thinking About Building?

Don’t let hidden costs sneak up on you. Today’s energy code requirements can derail your project budget if you don’t plan ahead. That’s why it’s critical to talk to an experienced builder early in the process—before design decisions are finalized and permits are submitted.

At SG Home Builders, we specialize in designing and building custom homes, home additions, and remodels that balance energy code compliance with cost-efficiency and client vision. We know how to navigate the complex code landscape in Illinois and beyond—helping you avoid costly mistakes and keep your project on track.

Let’s talk now, so the energy code doesn’t blow your budget later.

Contact SG Home Builders today to schedule a consultation. Let’s build smarter, together.

The post How Energy Code Requirements Are Inflating Project Costs appeared first on Custom Home Builders and Remodelers Based in Naperville, IL.

In this article, we’ll break down the pros, cons, and key considerations between these two building materials all with a focus on what works best in the unique Chicago climate.

Why Your Roof Choice Matters in Chicago

Chicago is known for its harsh winters, humid summers, and the occasional extreme weather event. That means your roofing choice needs to handle heavy snow and ice, strong winds, and UV exposure in the hot summer months.

Whether you’re building a custom home in the Chicago suburbs or updating a historic property, the roof you choose will impact your home’s durability, efficiency, and resale value.

Metal Roof: Strength, Longevity, and Efficiency

Metal roofing has become increasingly popular in Chicagoland for its resilience and sleek aesthetic. Made from materials like steel, aluminum, or zinc, metal roofs are designed to last decades and perform under pressure.

 Pros of Metal Roofing

• Longevity: 40–70 years with minimal maintenance 
• Snow Shedding: Snow and ice slide off easily, reducing winter damage
• Wind Resistance: Handles Chicago storms better than most materials
• Energy Efficiency: Reflects sunlight, reducing summer cooling costs
• Eco-Friendly: Often made from recycled materials and fully recyclable

 Cons of Metal Roofing

• Upfront Cost: Metal roofs cost 2–3x more than asphalt shingles
• Noise: Rain and hail can be louder without proper insulation
• Appearance: May look out of place in some traditional neighborhoods

Specifically for Homes in Illinois: For custom homes where performance and long-term value matter, a metal roof is an excellent investment, especially in snow-prone suburbs like Downers Grove or Glen Ellyn.

Asphalt Shingles: Affordable and Classic

Asphalt shingles remain the most common roofing material in the U.S. and for good reason. They offer a balance of performance, aesthetics, and affordability, making them ideal for many Chicago homeowners.

Pros of Asphalt Shingles

• Lower Cost: Ideal for budget-conscious projects
• Variety: Available in a wide range of colors and styles
• Ease of Repair: Damaged shingles are easy and cheap to replace
• Quick Installation: Faster turnaround for roofing crews

Cons of Asphalt Shingles

• Shorter Lifespan: Typically lasts 15–30 years
• Weather Vulnerability: Can crack or blow off in high winds. Easily damaged by hail.
• Energy Inefficiency: Absorbs more heat than metal

Chicago Insight: In many Chicago suburb neighborhoods like Naperville, Glen Ellyn, and Oak Brook, where HOA guidelines and budget considerations play a bigger role, asphalt shingles may be the more practical choice.

Comparing Metal Roofing vs. Asphalt Shingles

Which Roofing Material is Best for Your Chicago Home?

Choosing between metal roofing and asphalt shingles depends on your goals as a homeowner. Consider the following when building a new home or upgrading your current roof:

• For long-term value and energy savings: Choose a metal roof
• For short-term cost savings and traditional aesthetics: Go with asphalt shingles
• For a forever home or custom build: Metal often pays off over time
• For a faster flip or remodel: Shingles are quicker and more budget-friendly

Still unsure? The team at SG Home Builders, can guide you through every aspect of the homebuilding process  including selecting the right building materials for your location, budget, and design goals.

Talk to The Best Custom Home Builder in Chicagoland

Whether you’re comparing roofing systems, exploring energy-efficient design, or planning a full custom build, our team at SG Home Builders is here to help.

Contact us today to discuss your roofing options or start designing your dream home.

FAQs About Roofing Materials in Chicago

1. Does a metal roof increase home value?
   Yes, homes with metal roofs often see higher resale value due to their durability and energy efficiency.
2. Are asphalt shingles bad for snow?
   Not necessarily, but they are more prone to ice, snow, hail, and wind damage.
3. Will a metal roof make my home louder in the rain?
   With proper attic insulation, the sound difference is minimal.

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