How Much Does It Cost to Build a Luxury Custom Home in Utah?

In this guide, you’ll get a breakdown of current custom home costs in Salt Lake County, with detailed examples at the entry, mid-range, and luxury custom home levels. You'll also find expert budgeting tips, smart design ideas for every price tier, and a quick overview of the most common custom home financing options.

What you'll learn in this blog: 

1. How Much Does a Custom Home Cost in Salt Lake County
   
   1. Entry Custom Home Cost
   2. Mid-Range Custom Home Cost
   3. Luxury Custom Home Cost
2. How to Keep Your Custom Home Budget Under Control

3. What Are the Different Financing Options for Building a Custom Home?

How Much Does a Custom Home Cost in Salt Lake County

The cost to build a custom home in Salt Lake County can range from $200 to $500 per square foot, but it can exceed that based on a few aspects, like the finishes you choose. That's a pretty large range, so let's break it down into the three most common cost tiers.

Entry Custom Home Cost ($200–$300 per Square Foot)

For those looking to build a beautiful home without going overboard on price, entry-level custom homes in Salt Lake County typically range from $200 to $300 per square foot. These homes are fully custom but lean toward more standard materials and simplified layouts to keep costs manageable.

While these homes still offer tailored floor plans and quality craftsmanship, the focus is on value and efficiency. Homeowners working within this range often build in newer subdivisions with less site prep required and can maximize their budget with smart, streamlined selections.

Design Ideas for Entry-Level Custom Homes:

• Open-concept living and kitchen areas with practical square footage

• Shaker-style cabinets and durable quartz countertops

• Vinyl plank or engineered wood flooring for warmth and resilience

• Primary suites with walk-in closets and modest en suite bathrooms

• Two- or three-car garages with basic storage features

• Energy-efficient windows and systems without high-end upgrades

This price point is ideal for homeowners who want a home built around their lifestyle without the added complexity or cost of high-end luxury materials.

Mid-Range Custom Home Cost ($300–$400 per Square Foot)

If you're ready to invest more in design, materials, and layout flexibility, mid-range custom homes in Salt Lake County generally fall between $300 and $400 per square foot. These homes offer elevated finishes and personalized features.

At this level, many homeowners begin to introduce more sophisticated design details, specialty rooms, and upgraded materials throughout the home. 

Design Ideas for Mid-Range Custom Homes:

• Statement kitchens with waterfall islands and walk-in pantries

• Mudrooms with built-in storage and durable tile flooring

• Bonus spaces like offices, lofts, or flex rooms for multi-use living

• Spa-style bathrooms with freestanding tubs and dual vanities

• Accent walls with millwork or modern paneling

• Covered patios with lighting, fans, and space for outdoor dining

This is a sweet spot for many families who want more space and higher-end finishes without jumping into the ultra-luxury category.

Luxury Custom Home Cost ($400–$500+ per Square Foot)

Luxury custom homes across Salt Lake County typically start at $400 per square foot and can climb higher, depending on materials, structural complexity, and design innovation.

These homes are built with the utmost attention to detail, top-of-the-line finishes, and premium features. 

Design Ideas for Luxury Custom Homes:

• Gourmet kitchens with sculleries, double islands, and high-end appliances

• Vaulted great rooms with reclaimed beams and floor-to-ceiling windows

• Heated bathroom floors, smart lighting systems, and built-in audio

• Home gyms with sauna or steam room additions

• Lower-level entertainment zones with home theaters and wine rooms

• Outdoor pavilions with fire features, outdoor kitchens, and mountain views

A luxury custom home is the epitome of personalization, high-end details, and specialized spaces.

How to Keep Your Custom Home Budget Under Control

Even with a healthy budget, it’s important to build with intention. Custom home pricing can fluctuate quickly due to scope creep, materials, and hidden costs. These tips can help you stay on track while still creating a home that checks all your boxes.

Prioritize Must-Haves and Nice-to-Haves

Start by listing the things you absolutely need in your custom home, such as features that reflect how you live every day. This could be anything from a main-level primary suite to a dedicated home office or a three-car garage.

Once those essentials are clear, it becomes easier to draw the line between what’s non-negotiable and what would simply be nice to have. A second prep kitchen? A built-in espresso bar? Those can be wishlist items to include if the budget allows.

Be Transparent About Your Budget with Your Builder

It might feel uncomfortable to share your full budget upfront, but the truth is it’s one of the most helpful things you can do to get on the same page from the start.

When your builder knows the full financial picture from the beginning, they can recommend layouts, finishes, and systems that stay within range while still aligning with your goals. It also helps prevent delays or costly redesigns down the road.

A great builder will help you protect it, guiding you toward areas where it’s worth investing more and identifying places where savings won’t compromise quality or comfort.

Plan Ahead for Site Prep and Utilities

Site prep is one of those behind-the-scenes factors that can have a major impact on your final construction cost, and it varies greatly depending on location.

In older or rural areas of Utah, for example, your soils engineer might recommend clearing old farmland, hauling in clean fill, or even adjusting for slope or drainage before the foundation is poured. On the other hand, lots in newer subdivisions often come with preliminary grading done, but you’ll still need to meet specific foundation prep standards.

Utilities, access roads, and permitting timelines can also vary, so it’s wise to ask your builder about what to expect for your specific lot.

Work With a Design-Build Team 

Involving a team that understands both construction logistics and design is one of the best ways to avoid scope creep and budget overruns.

A well-coordinated team can help you create a plan that reflects your lifestyle while keeping your cost expectations realistic. This collaboration also helps you make confident decisions about materials, square footage, and features, ensuring that what’s on paper can actually be built within your timeline and financial goals.

What Are the Different Financing Options for Building a Custom Home?

If you’re exploring the cost to build a custom home in Salt Lake City, financing is an essential part of the conversation. Fortunately, there are several options tailored to different financial situations and build timelines.

We've outlined them below to give you a starting point for deciding which route works best for you.

Construction-to-Permanent Loans

This all-in-one loan covers both the construction phase and your long-term mortgage.

• Funds are released in stages during construction

• Converts to a traditional mortgage after the home is complete

• Reduces the need for separate closing costs

Standalone Construction Loans

Ideal if you’re planning to shop for permanent financing separately or expect a financial change post-build.

• Short-term loan covering only the build phase

• Typically higher interest rates

• Requires refinancing into a mortgage when construction ends

Owner Financing or Cash

Some homeowners use cash or equity from a previous sale to fund their build outright.

• No lender restrictions or appraisals

• Greater flexibility in timeline and scope

• May offer cost savings on interest or closing fees

FHA or VA Construction Loans (for Qualified Buyers)

Although less common, these loans can work well for eligible borrowers.

• Lower down payments for qualified buyers

• Must meet government guidelines

• Usually have stricter builder approval processes

Let's Chat About Your Custom Home!

Designing your dream home comes with a lot of decisions, but understanding what’s possible at each price point is a great place to start! 

No matter your price point, your must-haves, or your wishlist, having the right builder makes all the difference in your experience. At Marshall Homes, we partner closely with you to keep your vision and budget aligned through the entire process. Reach out to us, and we'll walk through what to expect, answer any questions you have, and give you a solid foundation for your custom home project.