How Much do Luxury Homes Cost?

The cost of building a luxury home varies by the style, size, and level of detail inside and out.  Choice of basic materials for the plumbing and electrical wiring, slab or other foundation, flooring and roof does not change much.  A steeper (French style) roof may cost a little more than a Mediterranean style house with a 6/12 pitch.  But there can be a 50% and higher upcharge going from composition shingles to concrete tile or slate.
Quality and selection of windows and doors and interior cabinets, counter tops, plumbing and electrical fixtures are the most expensive items in any house.  Flooring and interior finishes (moldings for walls and ceiling, doors and windows, fireplaces, etc.) are the next largest expense.  Home automation computers and controls is another high end item.

Cost to Build Luxury Home varies by region

Materials generally cost the same throughout the United States.  Manufacturers of windows and doors tend to stay fixed but look for local reputable mills or shops that build custom products.
Labor costs vary from region to region.  A state that is booming generally means cost of construction is higher as labor is scarce.
The general economy and politics has an effect on cost of construction.  If immigrant labor is held back then labor costs will go up.  If NAFTA trade agreements are not balanced then cost of timber from Canada may go up.  Interest rates may choke or fan the fire of the construction industry.
The best time to build is in a recession - if you can wait.  Labor and materials will go down and competitive bidding becomes fierce.

Budgeting the Luxury House

To get an estimate for the cost to build, first see what similar houses in your area are selling for.  Keep in mind the separate cost of land and the improvements.
Keep in mind the shell costs of a typical luxury house in your area remain constant.  The interior finishes and materials generally can affect overall costs by 30% up or down.
Start with a Schematic Design that can be ballparked by one or two local custom home builders.  Ask to see similar product built and gauge quality of construction.
Certain materials such as carved stone and ironwork is now available from Mexico and China at very low costs which enable classical stone detailing on the inside and outside of your residence.
Square footage average costs must be evaluated by the actual quality of materials and workmanship.