Building a new home in Clackamas County is an exciting opportunity to create a space tailored exactly to your lifestyle. Whether you’re dreaming of a modern farmhouse in Oregon City or a craftsman retreat in Happy Valley, understanding the local building process can save you time, money, and stress.
At Tegman Custom Homes, we’ve helped homeowners across Lake Oswego, West Linn, Milwaukie, and Gladstone navigate new construction from the ground up. This guide outlines what you need to know before breaking ground in Clackamas County — so you can build with confidence and clarity.
Understand Local Zoning & Land Use Requirements
Before selecting a parcel or finalizing plans, make sure your lot is zoned for residential construction. In Clackamas County, zoning designations like RRFF-5, R-10, or R-6 dictate what type of home can be built, how much square footage is allowed, and what setbacks apply.
You’ll want to review the Clackamas County Zoning Map, verify utility access, check for easements, and evaluate drainage on the site. We recommend having a builder like Tegman Custom Homes walk the lot with you to flag any issues before you buy.
Know What Permits You’ll Need
Clackamas County requires several permits before construction begins. These include a building permit, erosion control permit, septic or sewer connection approval, and possibly a driveway or access permit. The review process typically begins with a pre-application that can take 1–2 weeks. Plan reviews then follow, which may take 4–6 weeks or longer depending on the project’s complexity.
Working with a builder who regularly submits permits in Clackamas County can save you headaches and keep your project timeline on track.
Understand the Costs of Building a New Home in Clackamas County
The total cost to build a custom home depends on many factors, including lot conditions, size, finishes, and access to utilities. In general, site preparation like grading and excavation ranges from $15,000 to $50,000 or more depending on slope and soil conditions. Permits and fees often fall between $20,000 and $30,000, though this varies by city.
For the build itself, homeowners should expect to pay between $200 and $300 per square foot for a custom construction project. Utilities such as water, sewer, gas, and electric can add another $10,000 to $30,000. Homes in areas like Oregon City or Gladstone may have slightly lower hookup costs compared to homes in Lake Oswego, but site-specific analysis is always essential.
Pick the Right Lot and Location
Not all lots are created equal. Choosing the right one can make your build smoother and more cost-effective. Flat lots with existing utility access and no major easements are ideal, but they can be harder to find. Some of our clients prioritize scenic views or space for future additions, while others want walkability or proximity to schools.
Areas like Happy Valley and Oregon City offer newer developments and more affordable land options, while Lake Oswego and West Linn are great for high-end homes on larger parcels. Wherever you build, our team at Tegman Custom Homes offers complimentary lot evaluations to help you avoid pitfalls and choose the best fit.
Decide Between Custom and Pre-Designed Floor Plans
One of the most exciting parts of building a new home is choosing your layout. Some homeowners opt for fully custom designs, while others modify existing floor plans to save time and reduce architectural costs. Pre-designed plans are great for those with a clear budget and timeline, but custom homes provide ultimate flexibility — especially if you want energy-efficient features, multigenerational living spaces, or aging-in-place design.
At Tegman, we work with both approaches and help guide you through the pros and cons so your final design fits your goals, lifestyle, and lot conditions.
Why Work With a Local Custom Builder
Hiring a builder who knows Clackamas County’s permitting system, inspectors, and terrain can make all the difference. At Tegman Custom Homes, we bring deep local expertise to every phase of the build. From navigating hillside excavation in West Linn to coordinating sewer connections in Milwaukie, we’ve done it all.
We offer full-service project management, in-house planning and permitting support, and access to a curated network of subcontractors. More importantly, we’re invested in our community—and in building homes that stand the test of time.
Ready to Build Your Custom Home?
There’s a lot to consider before building a new home in Clackamas County—but with the right team, it can be a rewarding and seamless experience.
Let’s Talk About Your Project
Ready to start planning your dream home, remodel, or ADU? We’re here to help. Schedule a free consultation today to walk your lot, talk through your budget, and start planning the home you’ve always wanted.
Serving Oregon City, Happy Valley, Lake Oswego, Gladstone, Milwaukie, and surrounding areas.
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Considering adding an ADU instead of building a full custom home?
Check out our guide on ADU Cost in Clackamas County: What Homeowners Should Expect to compare timelines, pricing, and permitting options.
