How Much Does It Cost To Build A House
You can learn what goes into the cost of building a new home right here!
A new home can cost several thousand or a few hundred thousand to build. The national average is about $300,000, but that doesn’t mean you have to spend near that to get a quality home. It mostly depends on how much you can and are willing to spend. Besides that, some of the costs of building a new home involve:
- The physical location of the house (neighborhood, city, state)
- Size of the lot
- Square footage of the actual house
- Quality of materials the house is made from
- Hiring a new home construction contractor and other workers
- Creating the perfect landscaping to complete the exterior
The same goes for buying houses. Let’s take a look at the costs associated with building a new home.
Hiring a real estate attorney can benefit you >>
Think of choosing between two cars that are the same model. One is a fully-loaded V8 with leather seats, Bose speaker system, and a sunroof. The other car is a four-cylinder engine with cloth seats, stock speaker system, and no sunroof.
The fully-loaded V8 has all these awesome extras and great appeal. You can slide onto those leather seats, hear the clarity in sound from the speakers, and feel the sun on your face as you drive down the road. It costs more than the stock car, but it’s a lot nicer and much more fun.
Now let’s take a look at some variables that can affect home building costs.
What Type Of Home Do You Want
Custom Home: $350,000+
Create, design, and craft your dream home. It can perfectly reflect your personality and style because you are the one helping to design it. Unfortunately, this also means estimating a price is difficult because there is no real median or average.
You will need to hire an architect or have a builder submit a design. Architects usually ask for 5-15% of construction costs while builders can be $1.50-2.50 per square foot.
The parts making up these houses are built offsite and then moved to the lot. While they are cheaper than custom homes (sometimes up to 20% cheaper) they don’t have the same options for features.
New prefabricated homes come in 2 types:
Panel: build and fasten the walls to the floor. Construction time can be sped up and costs can be lowered.
Modular: created in sections and then assembled onsite. Not the best in terms of size and features, but the design options can help with that.
These are usually similar in design as they are part of a neighborhood. While they have a high degree of customization, you are limited to a certain number of floor plans and locations.
While they are usually more affordable than custom homes (sometimes 15% cheaper), they can be further away from the city.
Differences In The Exterior
This includes digging, filling, and backfilling for the foundation of your home. Sometimes additional work, such as retaining walls, need to be installed to further protect the foundation from flooding and other problems.
Framing: $70,00 – 120,000
This is the setup of the house: where the rooms will go, their sizes, and what your home will look like once it’s completed.
Exterior Finishes: $60-120,000
The finishing touches are what goes on the framing: roofing, walls, windows, etc.
Standard Home – Exterior
The first house has a design more suited to a lower budget featuring quality materials on the less expensive end of the spectrum:
- 3-acres of land
- Gable style roof
- Minimal front exterior details
- Architectural shingles
- Vinyl siding
- Aluminum wrapped trim
Luxury Home – Exterior
This home has a larger design made from luxury materials that will last longer and look amazing doing it:
- 4-acres of land
- Modern style roof
- Bump out in the front and rear
- Large front porch and deck around back
- Hardy siding
- PVC exterior trim package
Differences In The Interior
Systems Installation: $60-80,000
Everything that works inside your house: electrical, plumbing, HVAC, etc. Cost can vary due to the number of systems, types, size, and other variables.
Interior Finishing: $85,000+
One of the most fun parts of buying a new home – designing the interior. This can include painting, appliances, flooring, and other aspects of home design.
Standard Home – Interior
The materials used inside aren’t very expensive but they won’t last as long as higher quality materials:
- Cheap but effective fixtures and plumbing
- Laminate flooring
- Faux granite countertops
- Smaller room sizes
Luxury Home – Interior
High quality materials make up the interior of this home, making it look amazing:
- Amazing master bathroom
- Quartz countertops
- Quality plywood cabinets
- Crown molding and coffered ceilings
Tools & Materials
Machines will be used and some may need to be rented to craft your home. These tools can range from certain power tools to Bobcats and other heavy machinery. It can vary depending on where your home is being built.
As for the materials, the higher quality ones are more expensive, at least in the short run. Better materials can hold up better and look fresher for longer periods of time.
The size, complexity, and who you hired to build your home affects labor costs for new homes. Per hour, the cost of the 3 main hires for building a new house is:
- Land surveyors: $300-700
- Architects: $60-125
- Engineers: $100-150
How Will You Build Your New Home?
There are many factors we cannot cover because they can change depending on the where. Aspects can vary by state, city, and even by zip code. The houses below are some of the ones we’ve constructed in Virginia, and you can take a short tour with us by clicking on their link.
You can check out our 9 step guide to buying a new construction home >>