Sometimes it’s hard to find the right house in the right place at the right price, so you just have to build one from scratch.
But how much does it cost to build a house, According to Forbes, the Average cost of building a house in 2023 is around $300,000, According to US Census BureauThe average price of a contractor-built single-family home in 2021 was $343,600,
The cost of your home will vary depending on where you live, the size of the home, the materials used, and the labor required, as well as many other factors. Plus, you’ll need to buy the land the house sits on.
Let’s break down all the main variables you’ll face when deciding to build a home and how much you should expect to pay.
Average construction cost per sq. ft.
It should come as no surprise that the biggest cost factor is the size of your home. More houses = more material and labor costs.
On an average, the cost of building a house is $150 per sq ft. If you believe it will cost you $100 per square foot on the lower end and $200 on the high end (or $400 per square foot in some major cities including New York and San Francisco). Here’s how much you can expect to pay based on the size of your home:
| Square feet | average price range |
| 600 | $60,000 – $120,000 |
| 1,000 | $100,000 – $200,000 |
| 1,200 | $120,000 – $240,000 |
| 1,500 | $150,000 – $300,000 |
| 2,000 | $200,000 – $400,000 |
| 3,000 | $300,000 – $600,000 |
| 4,000 | $400,000 – $800,000 |
| 5,000 | $500,000 – $1,000,000 |
Another variable that will affect your square footage is how large your home’s footprint is. In general, it is cheaper to build than to build. If you want to build a four-bedroom house, consider making it 2-3 storeys to reduce your footprint.
cost by location
Before we get into the cost of building construction, note that building a three-bedroom house in Seattle, Washington will cost much more than building the same house in the suburbs of Tulsa, Oklahoma.
The cost of land depends a lot on where you live. In 2020, the National Association of Home Builders It was found that the average price of lots was $53,000, However, the average lot price in New England was around $120,000, Depending on your lot, you’ll also need to budget for land preparation costs, which can range from $1,300 to $5,100,
Local regulations will also affect your cost estimates. Different cities, counties and states have different resident building restrictions. read on building codes Violations in your state and neighborhood can be costly mistakes before starting any new construction.
pre-construction cost
Pre-construction costs are those expenses that need to be settled before things get off the ground. These costs include land, land preparation, utility connections, and more.
Purchase and preparation of land for construction
To build a house, you need land to put it on. An often overlooked part of the construction process is acquiring the land needed for construction.
Depending on location, these costs will vary, but note that the purchase price of land can easily exceed $50,000 For a small parcel in a populated area but as little as a few thousand dollars in a rural area.
Then, you’ll need to prepare the land, which means tree removal, grading, and anything else that’s necessary. it could be somewhere in between $1,000 – $7,000, depending on the scale of the project.
full or partial stack
Finished lot includes sewer, cable lines and utilities. For most metropolitan areas the land developer will complete the lot before listing it, so it’s one less thing for you to worry about.
The same cannot be said for many rural areas. If you buy unfinished land, plan to pay some major system costs to connect with a nearby city, including:
- Sewer Cost: $550 – $2,300
- Water line cost: $1,000 – $5,000
- Electric Grid Cost: $1,000 – $30,000
You may have to buy and lay concrete to connect your property to the road, which can bring on a whole new set of costs. paved driveways usually go $4,500While the gravel ones are very cheap.
buy floor plan
Once you know where you’re building and how large you want your home to be, the next step is to choose a floor plan. Whether you’re looking to build a quaint two-bedroom cottage or a spacious beach house, there are plenty of pre-designed floor plans to choose from. These designs come with a lot of the features homeowners want in a home, so you can save money by choosing the Stock plan. The cost of these plans usually range between $500 – $5,000,
You can also pay a premium and hire an architect to design a custom floor plan, but note that it costs more.
building permits and local fees
You cannot start the home construction process without a building permit. The cost of a building permit usually ranges between $1,200 – $2,000Depends on where you’re building and what permits you need.
Be sure to check with your local municipalities for any information regarding permits and construction laws, as all cities and local jurisdictions have different sets of requirements and fees.
external material cost
foundation
The foundation of a house is important for its stability and safety. If the foundation is off, there can be serious consequences and huge repair costs. The average cost of building a foundation is approx. $8,000And even more so if you are planning to build a basement.
framing
The frame is the skeleton of your home, and it’s usually made of wood. The frame is built first, then supports finishing features like your roof, doors, windows and drywall. Most framers also install window and door installation and sheathing your home’s subfloor.
On average, framing will cost $25,000 – $45,000,
Paatan
Roofing costs vary depending on the type you choose. On average, most will cost around $10,000 For traditional asphalt shingles, but this number can go up if you need a larger roof or want a different style.
exterior walls
Exterior finishes include materials or coatings used to make your exterior wall surfaces, including siding, shingles, stucco and masonry veneers, look aesthetically pleasing. Basic siding will cost around $12 per square foot But can easily be more expensive with different ingredients.
internal material cost
HVAC, electrical, and plumbing costs
HVAC, electrical, and plumbing are all very labor-intensive, and these costs are not something you should ever cut back on. All three of these major systems are critical to the safety and efficiency of your home.
- HVAC: $5,000 – $10,000
- Electricity: $3 – $5 per square foot
- Plumbing: $2,000 – $15,000
On average, when combined, these three would cost somewhere between $15,000 and $75,000,
insulation
Insulation helps keep your home energy efficient and comfortable. can cost from $3,000 – $5,000 On average, but it varies depending on the type of insulation you use and the amount you need.
fixtures and finishes
Your interior finish includes all the materials used to cover the inside of your home’s frame. Cost varies greatly. If your budget is tight, this is one of your best opportunities to save money. If you’re looking for luxury, your interior design may become the most expensive aspect of building your home. On an average, interior finishes range from $50,000 to $175,000, Some of these finishes include:
- Device: $3,000 – $24,000
- Cabinets: $2,000 – $30,000
- Countertops: $1,800 – $4,200
- light fixtures: $2,000 – $12,000
- Doors: $360 – $1,150 per door
- windows: $150 – $200 per window
- Drywall: $1.50 – $3 per square foot
- Floors: $1,500 – $4,500 per 500 sq. ft.
- Shower/Bathtub: $4,000 – $6,000
- paint: $5 per square foot
labour cost
The cost of labor will be approximately 30% – 50% of your total project cost.
Modular homes (also known as prefabricated homes) reduce labor costs because most of the work is done off-site, then shipped to your lot to be assembled. If you want a custom build, the lack of prefabrication can increase labor significantly.
Here are some labor costs to budget for, not including materials:
saving money by diy
If you have the skills and time to do any of these installations, you can significantly reduce the total cost of building a home. Doing the painting alone can easily save you thousands of dollars.
However, if you don’t have these skills, hire a professional. It usually costs a lot more to hire someone to fix your mistakes and reinstall something than to hire a professional.
How long does it take to build a house?
census Bureau construction survey shows it took an average of 7.6 months to build a home from start to finish in 2021. Homes built for sale took 6.7 months, contraction-built homes took 12.6 months, and owner-built homes took 14.3 months.
Is it cheaper to buy or build a house?
In general, it is cheaper to build your own house than to buy one. As mentioned earlier, the average cost of building a home is around $300,000. For comparison, the national median home sales price as of Q3 2022 is $454,900. This is an important distinction!
Keep in mind, these are based on average national figures. The total cost of building a home can easily fluctuate by hundreds of thousands of dollars depending on location, as can home prices. Talk to a real estate agent or developer in your area to learn about fair market values of homes in your area. And how much would it cost to make one.
Are you ready to build a house? BiggerPockets has a full library of resources to help you get started. check our forums and explore our network Real Estate Partners, and find out what options are available to you.
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Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
