The average cost to build a house in the Natural State is $251,800, excluding the land cost. With styles trending from self-sustaining to modular to luxurious, home building costs could reach millions.
How much you spend on building your house in Arkansas depends on the location, hourly labor rate, material costs, and the style of home you choose.
Can I Build My Own House in Arkansas?
Yes, you can build your own house in Arkansas. Apply for the residential home building permit at your local authorities by filling out the forms and paying the permit fee – head to portal.arkansas.gov for more information.
Is it Cheaper to Build or Buy a House in AR?
Buying a home is cheaper than building a new one from scratch in Arkansas. However, Arkansas is the cheapest state to live in, goods and services in Arkansas can cost up to 17% lower than anywhere else in the US.
According to Newhomesource, home building costs in Arkansas are between $225,000 to $500,000 on average for a 2,500-square-foot house. This cost varies depending on the size, type, and location of the property. Whereas, the median home value in the Land of Opportunity state is $250,200 (as of September 2022).
Building a new home involves several costs such as land buying costs, labor costs, permit fees, construction costs, etc. Also, building a home from scratch takes anywhere between three to six months. So, new home construction is not only expensive but also time-consuming.
» When Will The Housing Market Crash in Arkansas: The Arkansas real estate market is experiencing a major shift, know all about it.
How Much Does it Cost to Build a House in Arkansas?
As per Forbes Home, it costs about $251,800 to build a house in Arkansas. However, this is an average figure. It can go up or down depending on several factors like type, size, labor demand, material costs, etc.
Below is the table showing the construction cost per square foot for different types of houses:
|Home Type||Construction Cost (Per Square Foot)|
|Modular||$100 to $200|
|Standard||$100 to $200|
|Premium||$140 to $180|
|Luxury||$320 to $500|
Home Building Costs Breakdown in Arkansas
The home building costs can be broken down into two categories:
Hard Costs to Build a House in Arkansas
Hard cost comprises the cost of things directly involved in the home-building process. This includes labor costs, material costs, etc. which play a role in estimating the project completion.
1. Material Cost
Material cost makes up the major chunk of the hard costs. As per Homeadvisor, it is around $50 per square foot. So, to build a 1,500-square-foot house you can expect to spend $75,000 on materials.
Materials costs have dropped substantially post-pandemic. This is due to global supply chains coming back to normal and lesser people buying homes. The following costs are included in the home building material costs:
|Flooring||$7 to $10 per sq. ft|
|Drywall||$10 to $13 per sheet|
|Lumber||$2 to $8 per sq. ft|
|Siding||$3 to $12 per sheet|
2. Labor Cost
Many professionals are involved in the home-building process. This includes electricians, architects, floor installers, plumbers, HVAC installers, carpenters, etc. Apart, you need a contractor or a firm to manage the construction process. Usually, the contractor or the firm hires the professionals involved in the construction.
The overall project cost varies depending on each professional’s hourly rates. It may further depend on the property type, detailing, materials, and workforce. Apart, the labor costs vary based on the location. For instance, in a hot market like Little Rock or Fayetteville, home builders and labor costs are more than in other areas.
Below are the average hourly rates of home building professionals in Arkansas:
|Professionals||Hourly Rate *|
|Flooring Installers||$15 to $30|
|Roofers||$20 to $40|
|Painters||$20 to $40|
|Brick Masons||$30 to $60|
|Landscapers||$15 to $25|
|General Contractors||$40 to $120|
|Plumbers||$40 to $150|
|Carpenters||$25 to $40|
|HVAC Technicians||$45 to $100|
|Architects||$50 to $80|
|Structural Engineers||$45 to $100|
|Electricians||$40 to $80|
3. Electrical Cost
On average it costs $3 to $5 per sq. ft. to wire a new home. The amount you spend on electrical work varies depending on the property size, type of wiring, wire material, etc.
Electrical work while building a new house consists of roughing the wires, earthing, installing outlets, switches, and panels, and setting up fixtures and lights. It can further include setting up ethernet cables and other wirings.
4. Roof Installation Cost
Roofing costs depend on the choice of roofing material, the slope of the roof, and the size of your house. Below is the table showing roofing costs per square foot in Arkansas for various roofing materials:
|Roofing Material||Cost Per 100 Sq. Ft.|
|Asphalt Shingle Roof||$189.66|
|Wood Shake Roof||$548.66|
5. Plumbing Cost
Plumbing costs include installing plumbing fixtures such as toilets, faucets, wash basins, bathtubs, etc. Homeowners spend around $4.50 per sq. ft. in installing plumbing fixtures in new construction or $4,080 on average.
You require a plumber to fix the pipes and lay the sewage lines. Apart, you need to install new machinery like washing machines, dryers, and geysers while custom building a home in Arkansas.
As per Homeadvisor, homeowners pay $1,500 to $12,500 for installing a new HVAC system. This cost depends on several factors such as the size of the cooling area, the type of system, the brand, the addition of zones, etc. All these additional factors can increase the installation cost by $2,000 or more.
Soft Costs to Build a House in Arkansas
Soft cost in home construction comprises costs that do contribute to the building process directly. They include costs like permit costs, design costs, etc.
1. Land Cost
Buying land in Arkansas is comparatively cheaper than in other states, the average cost per acre in the Beehive state is $6,739 per acre, which is around $37,000 less than the national average. However, land costs depend on the size of the house you wish to build and the location.
2. AR Permit Cost
In Arkansas, a building permit is required to construct a new house. State laws charge differently for commercial and residential building permits. The cost of a permit in Arkansas varies per county and is usually charged in accordance with the total valuation of the project.
In Little Rock, for a project with a total valuation between $100,001 to $500,000, a base fee of $318 is charged for the first $100,000 after which you are charged $2,40 for each $1,000, or fraction thereof, to and including $500,000.
Refer to your local county’s website or office for more information on building permits.
3. Home Interior Costs
To build your dream home you would purchase the desired furniture, wall prints, rugs, carpets, artifacts, etc. You may also hire an interior designer for designing the interiors of your house.
An interior designer can help you maximize space utilization. An interior designer charges $50 to $200 on average, depending on their experience and location.
House Building Financing Options
If you have the funds to finance your dream house, you are welcome to skip this section. If not, then do not lose hope. Prepare a budget and get an estimate of how much money you need, then apply for one of the following home loans:
Home Construction Loan
There are two home loans designed explicitly for home-building purposes. These include:
- Construction-to-Permanent Loan: This loan covers both land purchasing as well home building costs. Once the construction is complete and you move into the house, the loan is converted to a traditional mortgage of 15 to 30 years.
- Construction-only Loan: It is meant only for financing the home building, and does not cover the land purchase. After your home is ready, the entire loan amount is due. You either cover the amount by paying cash or taking out a mortgage.
A personal loan will not cover your entire home-building cost. Take out a personal loan to finance a specific part of the construction. Say, you forgot to account for landscaping while budgeting your home-building finances. In such a case, a personal loan can come to your rescue.
Home Equity Loan
This applies to homeowners who already have a home and want to finance the construction of a new one. Depending on how much equity you own in your existing home, you can finance the entire construction of your new home or a part of it.
Should You Build Your Own House in Arkansas?
If you own land in a location you want to live in, we highly recommend building a house yourself or hiring a General Contractor to build you one. Budget 9 to 12 months for planning and construction of your new home.
If you don’t own your own land in a desirable area, we recommend you house-hunt for turnkey homes and move in quickly.
Skip the hassle of building a house, and check out FSBO properties on Houzeo.com. Make offers, negotiate directly with homeowners, and move into your new home within a month.
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
What is Houzeo?
An overview of what the platform is all about
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
1. How much does it cost to build a 2,000 square foot home in Arkansas?
Building a house in Arkansas costs about $90to $200 per square foot. So, you would have to spend $225,000 to $500,000 to build a 2,000-square-foot home in Arkansas. These costs will vary depending on the exact location, property types, labor costs, material costs, etc.
2. How much does it cost to build a house per square foot in Arkansas?
Building a house in Arkansas costs $90 to $200 per square foot. However, home-building costs depend on the property type. For instance, a high-end luxurious home can cost up to $300 to $500.
3. How much does it cost to frame a house in Arkansas?
It costs about $5 - $16 per square foot to frame a house in Arkansas.
4. How much does a foundation cost in Arkansas?
A foundation costs $5 to $ 11 per square foot in Arkansas depending on the thickness of the reinforced slab.
Resources for Buying a House in Arkansas
- How to Buy a House in Arkansas: Check out our Arkansas home-buying guide.
- Buying a House in Arkansas: Discover the best time to buy a house in AR.
- How to Buy a House With Bad Credit in Arkansas: Learn how you can buy a house in AR with a bad credit score.
- For Sale by Owner Websites Reviews: Discover the best FSBO listing sites to find properties online.
- Cost of an Appraisal in Arkansas: How much does a home appraisal cost in Arkansas?
- Purpose of Title Insurance in Arkansas: Discover how title insurance works in the US.
- How Much Does Owner’s Title Insurance Cost in Arkansas: Discover what are your title insurance obligations as a buyer.
Resources for Selling Your Owner-Built Home
- List on MLS: Discover ways to list your owner-built homes on the MLS.
- Free MLS Listing: Read to know if there are ways to list on the MLS for free.
- Flat Fee MLS Listing: Check out how Houzeo’s FFM packages will save you thousands in commissions.
- Cash Buyers for Homes: Sell your house fast for cash with America’s best cash home-buying companies in 2023.
- Flat Fee Realtor: Skip the listing commission and pay a flat fee to successfully sell your home with Flat Fee Realtors.
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