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8 min read Nov 21, 2022

How Much Does it Cost to Build a House in Alabama ?

How Much Does it Cost to Build a House Alabama

The average cost to build a house in the Cotton State is $267,620 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 Alabama depends on the location, hourly labor rate, material costs, and the style of home you choose.

Can I Build My Own House in Alabama?

Yes, you can build your own house in Alabama. Apply for the residential home building permit at your local authorities by filling out the forms and paying the permit fee – head to for more information.

Is it Cheaper to Build or Buy a House in Alabama?

Currently, it is cheaper to buy a home in USA than to build your own home according to the most recent study by the National Association of Home Builders. It costs $34,000 more on average to construct a new home than to buy one.

According to NewHomeSource, the basic home building costs in Alabama for a 2,500 square feet home are between $225,000 to $342,500. This cost varies depending on the size, type, and location of the property. Whereas, the median home value in the Cotton State is $273,500 (as of October 2022).

Building a new home involves several costs such as land buying costs, labor costs, permit fees, construction costs, etc. Also, building a house from scratch takes anywhere between three to six months. So, new home construction is not only expensive but also time-consuming.

How Much Does it Cost to Build a House in Alabama?

As per Forbes Home, it costs about $267,620 to build a house in Alabama. 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 TypeConstruction Cost (Per Square Foot)
Modular$50 to $100
Log Cabin$150 to $250
Standard$90 to $180
Luxury$160 to $300

Home Building Costs Breakdown in Alabama

The home building costs can be broken down into two categories:

Hard Costs to Build a House in Alabama

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 returning to normal and fewer people buying homes. The following costs are included in the home building material costs:

ItemsEstimated Cost*
Flooring$2 to $12 per sq. ft.
Drywall$10 to $13 per sheet
Lumber$2 to $12 per sq. ft.
Siding$2 to $12 per sq. ft.
*costs will vary as per material

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 real estate housing market like Birmingham, home builders and labor costs are more than in other areas.

Below are the average hourly rates of home building professionals in Alabama:

ProfessionalsHourly Rate
Flooring Installers$25 to $60
Roofers$25 to $90
Painters$18 to $70
Brick Mason$25 to $60
Landscapers$18 to $50
General Contractors$20 to $80
Plumbers$25 to $90
Carpenters$22 to $50
HVAC Technicians$26 to $80
Architects$70 to $200
Structural Engineers$30 to $100
Electricians$25 to $80
*Hourly rates are sourced from and may exclude material charges

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 Alabama for various roofing materials:

Roofing MaterialAvg Cost Per 100 Sq. Ft.
Asphalt Shingle Roof$194.16 
Tile Roof$901.43 
Wood Shake Roof$561.67 
Slate Roof$1,167.24 
Source: ProMatcher

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 (national 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 Alabama.


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 Alabama

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

The average cost per acre in the Cotton State is $3,000 which has actually increased since last year by almost $500. Even then, land costs in Alabama are almost 40,000 less than the national average, which makes it one of the cheapest states to buy land in USA.

2. AL Permit Cost

In Alabama, 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 Alabama varies per county and is usually charged in accordance with the total valuation of the project.

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 specifically designed 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.

Personal Loan

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 Alabama?

We recommend building a new house only if you have a lot and have about three to six months in hand. Because you can buy a new house for much cheaper and quicker than building a custom home.

If you have a blueprint of your dream home in your mind and have all the required resources, build your own home. Hire a reputed contractor and you are good to go.

An experienced real estate contractor can arrange for all the resources needed in the construction. We recommend you do the necessary research before building your own house in Alabama.

Frequently Asked Questions

1. How much does it cost to build a 2,000 square foot home in Alabama?

It costs about $90 to $137 per square foot to build a house in Alabama. So, you would have to spend $180,000 to $274,000 to build a 2,000-square-foot home in Alabama. 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 Alabama?

It costs $90 to $137 per square foot to build a house in Alabama. However, home-building costs depend on the property type. For instance, a luxury-grade home can cost up to $160 to $200per sq ft.

3. How much does it cost to frame a house in Alabama?

It costs about $2 - $12 per square foot to frame a house in Alabama.

4. How much does a foundation cost in Alabama?

A foundation costs $5 to 12 per square foot in Alabama depending on the thickness of the reinforced slab.

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Alabama How Much Does It Cost to Build a House

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