Construction Costs
Designing and Building in the Lowcountry: What Does It Cost?
Many people who are contemplating building a new home are surprised at the cost of construction. This has been especially true since the beginning of the pandemic, and the pressures have not fully eased.
Single family home construction continues to grow in spite of ongoing challenges. The US Census Bureau reported that residential construction spending in 2024 reached $917.9 billion, a 5.9 percent increase over 2023. In South Carolina specifically, total construction starts surged 28 percent in 2024, rebounding from a 2023 slowdown.
The workforce is not keeping up. According to Associated Builders and Contractors, approximately 439,000 net-new construction workers are needed nationwide in 2025, with an additional 499,000 projected for 2026. A 2025 AGC and NCCER survey found that 92 percent of US construction firms struggle to hire qualified workers, and more than half reported that applicants lack the necessary skills or licenses to perform available work. South Carolina contractors were among the most affected, with 36 percent reporting project impacts due to workforce pressures. Struggles to find skilled workers, supply shortages, and overbooked schedules continue to lead contractors to turn down work and push up costs.
The Moving Target of Material Costs
The sources of construction cost inflation remain a moving target. Lumber prices have stabilized compared to the dramatic swings of 2020 through 2022, but new pressures have emerged. As of August 2025, the producer price index for aluminum mill shapes had jumped 22.8 percent year over year, while steel mill products climbed 13.1 percent, driven in significant part by new tariffs. Two in five construction firms reported raising their own prices in response to tariffs on key materials. Overall construction inflation in 2025 is projected at approximately 4 to 4.4 percent, including tariff effects.
Why Coastal Construction Costs More
Construction costs are higher in Beaufort County because we are in both a hurricane zone and an earthquake zone. The requirements to mitigate both of these hazards include the following:
Building the first floor above FEMA’s base flood elevation, which adds to the foundation cost.
Structural Engineering fees to design code-compliant structural systems.
Connecting the roof, through the walls to the foundation and footing with threaded rods, go-bolts, hurricane clips, or other code-approved methods. This adds to both the material and labor costs.
The shear walls required for lateral stability are more expensive than sheathing options available in other parts of the country.
Window and door openings must be protected from windblown debris. Impact-rated windows can cost up to twice as much as non-impact openings.
Best Practices Worth the Investment
There are several best practice options that will cost more initially but will either save money on your home insurance or utility bill that we recommend.
A secondary roof under a metal roof that ensures water tightness if the roof is compromised during high winds.
An U.L. certified lightning protection system will add $10,000 to $15,000 to a 2500 s.f. house but will protect your house and electronics from lightning strikes during our many lightning storms.
What Does It Actually Cost?
Cost, square footage, and quality of materials and workmanship are the triad of construction. Current estimates for high-end custom homes in coastal South Carolina start at approximately $500 per square foot, with luxury builds capable of exceeding $2 million for a mid-size home. This is consistent with what we are seeing on our projects in Beaufort, Hilton Head, Palmetto Bluff, and the surrounding sea islands. If cost is the driving factor in your project, you must be flexible with project size and the quality of materials and workmanship.
Television remodeling shows continue to add to unrealistic time and cost expectations. Those shows often feature donated materials, heavily discounted contractor fees, and pre-built components assembled off-camera before filming begins. Real construction in the Lowcountry, built to the climate and performance standards this region demands, takes time and costs what it costs. The investment is substantial and the result, when done well, is a home that performs, endures, and holds its value for generations.