Cost to Build a Custom Home in Sherman Oaks (2026 Price Guide)
- 10 Mar, 2026
- Nagar Builders Team
- New Construction
Sherman Oaks, CA is where suburban comfort meets urban amenities. This highly desirable neighborhood features homes in the Spanish Revival and Mid-century Modern styles. It’s close to Studio City and other key destinations such as Santa Monica, making it an excellent place to consider building a new construction home.
However, before you break ground, it’s important to know what you can expect to pay at each phase of the construction process. Here’s a cost guide that explains the major expenses associated with building a brand new home in Sherman Oaks.
Land, Site Prep, and Pre-Construction
Before you can actually begin building your home, you’ll need to acquire the appropriate land. Prices can vary significantly, but depending on lot size and location, a vacant lot in a residential area suitable for building a new construction home can cost anywhere from $100,000 to $1 million in Sherman Oaks. Once the land has been purchased, the grading process can begin. This is when the construction company levels and excavates the land in preparation for the home to be built upon it. Depending on the complexity of the project, this part of the process can cost tens of thousands of dollars.
Last but not least are the permits required for this process. You’ll need to obtain permits from the Los Angeles Department of Building and Safety, which can take anywhere from 3 – 6 months. Depending on the exact permits you need, your total costs for these approvals could exceed $10,000.
Architecture and Engineering
Up next is designing your new construction home. You can expect this part of the process to account for anywhere from 10% to 15% of the total construction cost of your home. Considering Southern California’s susceptibility to earthquakes, you’ll want to make sure your home is as structurally sound as possible.
Title 24 is California’s statewide energy code that every new home built in California must adhere to. The mandatory requirements of Title 24 include solar panels, high-E windows, and LED lighting. You’ll want to factor in these costs as well as you build out your new home in Sherman Oaks, CA.
Structure and Interior Build Out
At this stage, your new house is starting to look like a house. Now, your construction company will begin building out your home, which includes all the major systems such as plumbing, HVAC, electrical, and more. These expenses associated with this phase are often referred to as hard costs and in the Sherman Oaks area, they can reach $450 – $650 a square foot.
Once the structure of the new construction home is built, it’s time for the interior, which includes things like flooring, cabinetry, countertops, and drywall. These costs can vary significantly depending on the types of materials and styles you choose.
Build Your Dream Home on a Budget
Building a new construction home in the Sherman Oaks area carries a premium, however, it’s well-worth it to have a home in one of Los Angeles’s most sought-after neighborhoods. Contact Nagar Builders to get started on building your new home in one of Southern California’s best places to live.