Building a house is an exciting endeavor that offers the opportunity to create a home tailored to your unique needs and preferences. However, before embarking on this journey, it’s crucial to have a clear understanding of the financial aspect. As we step into 2024, the construction landscape continues to evolve, with various factors influencing the overall cost of building a house.
In this comprehensive guide, we delve into the question that weighs on the minds of aspiring homeowners: How much does it cost to build a house? We will explore the key factors that impact construction expenses, from materials and labor costs to location and design choices. By shedding light on the latest trends and considerations in the real estate market, we will help you to make informed decisions throughout the home-building process.
Whether you’re a first-time builder or someone looking to upgrade or downsize, understanding the financial implications of building a house in 2024 is essential. By navigating through this article, you will gain a clearer perspective on the expenses involved, empowering you to plan your custom home with confidence.
So, let’s get started.
Key Takeaways
- The price to build a house is $300,000.
- The average national range for building a home is $112,000 – $465,000.
- Cost per square foot to build a house is $150.
Average cost to build a house
Average cost to build a house is $300,000, for a 2,000-square-foot home. Most homeowners will spend between $112,000 and $465,000.
Cost per square foot to build a house
Average cost to build a house per square foot is $150. This is the cost for a new house, but it doesn’t include the cost of the land.
| Average cost | $150 |
| Highest cost | $510 |
| Lowest cost | $100 |
Of course, the size of the house will affect the price. In the table below you can see what size of the house you can build depending on your budget.
| Size of the house | Average cost range |
| 800 square foot house | $80,000 – $160,000 |
| 1,000 square foot house | $100,000 – $200,000 |
| 1,500 square foot house | $150,000 – $300,000 |
| 2,000 square foot house | $200,000 – $400,000 |
| 2,500 square foot house | $250,000 – $500,000 |
| 3,000 square foot house | $300,000 – $600,000 |
| 5,000 square foot house | $500,000 – $1,000,000 |
Cost of building a house by state
In the chart below, you can see costs of building a house by state. Prices are for a 2,000-square-foot home.
| State | Cost | State | Cost |
| Alabama | $267,630 | Montana | $298,960 |
| Alaska | $421,090 | Nebraska | $210,900 |
| Arizona | $295,600 | Nevada | $334,150 |
| Arkansas | $251,900 | New Hampshire | $299,900 |
| California | $405,450 | New Jersey | $376,900 |
| Colorado | $299,300 | New Mexico | $290,940 |
| Connecticut | $345,450 | New York | $360,190 |
| Delaware | $327,070 | North Carolina | $301,500 |
| Florida | $263,650 | North Dakota | $212,500 |
| Georgia | $273,900 | Ohio | $222,480 |
| Hawaii | $412,850 | Oklahoma | $260,500 |
| Idaho | $315,520 | Oregon | $340,590 |
| Illinois | $265,450 | Pennsylvania | $302,200 |
| Indiana | $219,310 | Rhode Island | $338,180 |
| Iowa | $214,050 | South Carolina | $301,850 |
| Kansas | $207,120 | South Dakota | $204,420 |
| Kentucky | $280,580 | Tennessee | $261,940 |
| Louisiana | $269,930 | Texas | $264,100 |
| Maine | $282,140 | Utah | $288,570 |
| Maryland | $294,160 | Vermont | $307,840 |
| Massachusetts | $350,850 | Virginia | $310,110 |
| Michigan | $216,780 | Washington | $343,100 |
| Minnesota | $236,990 | West Virginia | $301,120 |
| Mississippi | $255,350 | Wisconsin | $239,150 |
| Missouri | $226,760 | Wyoming | $290,430 |
As you can see, building a house is most expensive in Hawaii and Alaska. The cheapest average house prices are in South Dakota and Kansas.
As shown on the map, the cost of a new house will be determined by the region of the US you live in. The darkest color represents the higher cost to build a house. Then, the logical question is “Is it cheaper to build your own home?”, let’s find out.
Is it cheaper to build your own house?
According to US Census Bureau data (pdf), the average sales price of a new house in the 1st quarter of 2024 is $516,500 and median home sales price for the same period is $436,800. When we look at the different regions, the average sales price is:
| Region | Average sales price of a new house |
| Northeast | $845,000 |
| Midwest | $448,500 |
| South | $462,600 |
| West | $623,000 |
Let’s compare these prices to the same period last year.
Compared to the same period last year, you can see that new home prices across the US, except in the West, are up. According to this information it might seem that it is cheaper to build a house. But that is only true if you already own the land. Otherwise, it is cheaper to buy a house than to build one.
Again, the main factor for answering the question – Is it more expensive to build a house, is location. These are the states where it is cheaper to build your own home than to buy one:
- Hawaii
- California
- Colorado
- Utah
- Virginia
- Delaware
- Maryland
- Montana
- Florida
- Idaho
- Washington
- Massachusetts
- Texas
- Oregon
- North Carolina
- Georgia
- Tennessee
- New York
Hawaii is the state where the difference between cost to build a house vs to buy one is the greatest, on average building one is $494,000 cheaper. In New York the difference is the smallest, $11,000 in favor of building a house.
Cost to build a house calculator
If you need a more precise estimator to find out the cost of building a house click here. In this calculator you will be able to determine new home construction costs based on:
- Location of your house
- Main floor information
- Ceiling height
- Construction class of your house
Pre-construction cost
When deciding to build a house, there are some pre-construction costs you should consider, the main ones are:
- Land cost
- Floor plan and architectural fees
- Demolition cost
- Building permits cost
Land cost
If you don’t own land, this will certainly increase the cost of your house building project. The cost of plots varies depending on the area you live. The national average is $12,000 per acre.
Floor plan and architectural fees
Having a floor plan is necessary when building a home. If you already know what design you want, ordering a custom floor plan is on average around $100. But if you are planning to hire an architect and a designer, your cost will be much higher. Architect fees for residential projects are around 10% of the construction cost.
Demolition cost
If you bought or you already own a plot of land that already has a structure on it, or an existing home that you don’t want, you will have to factor in the cost of house demolition. First, you will have to obtain a demolition permit. The average range for demolition is between $3,000 and $26,000. Reason for such a wide range is there is a big difference between demolishing a house or a small structure.
Building permits cost
The average building permit cost for a house is between $600 – $3,000. But there are many different structures that also require a building permit. Depending on the area, there might be state or municipal fees that you will also have to pay before the construction begins.
Construction cost
When building a new house, there are 8 main construction elements that will determine the cost of building a house:
- Excavation
- Foundation
- Framing
- Roofing
- Sheathing
- Siding
- Flatwork
- Driveway
Let’s break down the cost of each of them.
Excavation
It is finally time to break ground and start with the excavation process. On average, you will spend $3,000 on excavation.
Foundation
This is a very important part of building a house. On average, homeowners spend between $5,000 and $14,000 on foundation. But, if you are planning to build a basement, the cost will be much higher. Typically, a foundation with a basement ranges from $20,000 to $80,000.
Framing
Framing is going to be one of the highest costs in your house-construction budget. High-quantity lumber framing on average costs $34,000 for a 2000-square-foot home. The average cost per square foot is between $7 and $17. The cost will be higher if you choose metal stud framing systems.
Roofing
The cost of roofing will depend on the size, material, and slope. The average cost for a new roof is $10,000. This is the cost for traditional asphalt shingles and an averaged sized roof. If you want to install solar panels on your roof, the cost will be doubled.
Sheathing
Depending on the building materials that you chose and the size of your home, sheathing typically cost $11,000. Sheathing is used to provide structural support and weather resistance to the structure.
Siding
When it comes to siding, choosing a durable material is the best way to go. On average, the cost of siding is between $10,000 and $18,000. The cost will vary depending on the material that you choose. The most common siding materials that home builders choose from are:
- Engineered wood (cost per square foot is $7 – $12)
- Vinyl (cost per square foot is $2.5 – $8
- Aluminum/metal (cost per square foot is $8 – $35)
- Natural wood (cost per square foot is $11 – $36)
- Everlast composite (cost per square foot is $9)
- Fiber cement (cost per square foot is $6 – $14)
- Brick (cost per square foot is $10 – $30)
Flatwork
This is the cost of any type of hardscaping, including installing patios, decks, pergolas and any other outdoor structures. The average cost of flatwork is between $2,000 and $40,000. The reason for such a wide range is that you can choose between many different structures, their size and materials they are made from.
Also, when thinking about hardscaping, this is a good time to consider your landscaping design. The average cost of landscaping is $8,500. The thing that can significantly transform your backyard is a swimming pool, but of course you have to consider that the cost of a pool isn’t small.
Driveway
When choosing a driveway, you have two main options that are very different when it comes to the cost:
- Gravel driveway – the average cost is $1,600
- Paved driveway – the average cost is $4,600
Finishes and material costs
The main 7 elements that will determine home building costs when it comes to finishes and materials are:
- Drywall
- Plumbing
- HVAC system
- Electrical
- Flooring
- Appliances
- Furniture
Drywall
Drywall is much cheaper than plaster, so it is a common option for many home builders. Installing drywall on average costs $16,000. If you are interested in soundproof, fireproof or mold-resistant drywall, the cost will be a bit more.
Plumbing
The main factor that will determine the cost of plumbing is the plumbing material that you choose. For a 2,000-square-foot home you will spend around $11,000 for copper pipes. If you choose PVC, CPVC or PEX piping, on average, you will pay $5,000.
You can read more on this topic in our article on the cost of adding a bathroom.
HVAC system
Heating, ventilation, and air conditioning (HVAC) installation ranges from $7,000 to $13,000, the average cost is $10,000. The cost includes ductwork, central AC, a furnace and labor costs.
Electrical
The cost of installation of electrical wiring through the entire home is pretty much the same for every state. On average, you will pay $5 per square foot. That is $10,000 for a 2,000-square-foot home.
Flooring
When it comes to flooring, this is one more element of house construction, where the price will mostly depend on the material that you choose. There are many options, so think wisely. On average, the cost of flooring is $12,000.
Appliances
When the installation of appliances begins, you know that your house building project is nearly done. It is difficult to estimate the cost of appliances because there is a wide range of features and the level of technology they can have. The average range of appliances is from $3,000 to $16,000. Custom pieces will cost much more.
Furniture
Furnishing your new home is the final step. For many, this is also the most important step in the process of building a new home, since here you can show your personality and style and create your own living space. Complete furniture for a 2,000-square-foot home can range between $20,000 and $80,500.
Hidden costs of building a house
- Living expenses while the house is being constructed
- Trash clean-up
- Portable toilets
- Miscellaneous
Living expenses while the house is being constructed
This is usually overlooked, but when making a budget for building a new home, you should consider the living cost while the house is being constructed. On average, it takes 7 months to build a house from start to finish. That might mean 7 months of renting a place and that will increase the cost of the entire project.
The average monthly rent in the US is $1,600. But, as you know, this will absolutely depend on the area you will rent the apartment in.
Trash clean-up
The building crew that is responsible for building your house will most likely clean the sight after they finish all the work. But it is your responsibility to pay the bill for it. On average, you will spend $3,000 for trash clean-up.
Portable toilets
This will be the cheapest of all house costs. Renting a portable toilet is around $100 per month. If we are looking at the average time for building a home, you will spend around $700 on portable toilets.
Miscellaneous
On average, people spend $10,000 more than what their budget for building a house was. Make sure that you have a certain amount of money set aside for unexpected expenses.
Factors that affect the cost of building a house
As shown throughout this article, the main factors that will affect the cost of building a home are:
- Home size
- Home design and materials
- Home location
Home size
As you saw in the table at the beginning of this article, the size of the house has a great impact on the total cost. But it is not just about the construction cost, the size of your home will also affect monthly mortgage payment.
Home design and materials
The design of your new house and the materials that you choose for flooring, finishes and even plumbing, will affect the final cost. Choose wisely, there are some things you won’t compromise on, which is understandable, but there are always cheaper options for things that aren’t as important or won’t affect the overall style of your home.
Home location
As you saw in the map and table at the beginning of this article, each state has a different average cost to build a home. In the most extreme case, the difference is twice as much money to build the same house of 2,000 square feet.
Options for financing home construction
When thinking about different home building financing options, our advice is to choose a home construction loan. The main difference between mortgage loan and construction only loan is that construction loans are of shorter duration and typically last no longer than a year. After that period, they often convert to a more traditional mortgage loan.
Homebuyers who want to buy an existing home can apply for a mortgage loan, but if you are building your own house, you won’t have that option.
With a construction loan, you receive funding in stages that align with the house construction process, paying only interest until the home is finished. Because of the higher risk for lenders, construction loans come with higher interest rates.
Cost to build a house FAQs
What are the disadvantages of building a house?
Time, overall cost and stress are disadvantages of building a house. As you saw, you will need a serious budget for building your dream home. The process lasts more than half a year. Many things can go wrong and many unexpected expenses can occur.
But when you look at the wider picture, these disadvantages can be quickly forgotten, once you move into your dream home.
What is the cheapest type of house to build?
The cheapest types of house to build are so-called tiny homes. These houses are around 600 square feet and on average, you will spend $60,000 on a tiny home.
Money saving tips
In order to save money during home building process, follow these 5 steps:
- Stick to your budget – Now that you know everything that will affect the total cost of the home building process, you are able to create a budget that will work for you. Once you have it, stick to it. Otherwise you will easily spend more money than you planned.
- Build up – If you don’t own the land, you can save money by purchasing a smaller plot. On it, consider vertical square footage, rather than horizontal. In this way you can save money on land costs.
- Hire professionals – Structural tasks should always be left to the professionals. One small construction mistake can greatly affect your budget. Also, since you will need a lot of permits, start with ordering a site plan for permits, which is necessary in every permitting process.
- Get multiple quotes – Don’t talk to just one designer, architect, real estate agent or general contractor. Talk to several and get their quotes. If one is significantly cheaper than the others, that is not a great sign. You don’t want to end up with a poorly constructed home. But you certainly don’t need to hire the most expensive ones either.
- DIY – A lot of work has to be done professionally. But there are some tasks that you can do on your own. Interior decorating can be very fun and if you do it, you will save a lot of money on interior costs. You can also do painting and landscaping on your own. Those personal touches will be the ones that will create your dream home.
