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9 min read Feb 19, 2024

How Much Does it Cost to Build a House in 2024?

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Megha M. is a content editor who loves to play with words. Apart from this, she is a theater artist and a public speaker who transforms into various personas on stage.

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On average, it costs $150 per square foot to build a house in the US. Apart from this, you need to bear other additional expenses. Construction charges depend on the type of property, square footage, and customizations you choose.

Typically, you would spend 9 months to build your house. In case you don’t hire a contractor and choose to DIY, it can go up to 12 months. To save time and money, you can browse and buy homes for sale instead.

💸 Home Building is Expensive

  • Homeowners spend $480,000 in total to build a house in the US, which is $66,126 more than the median sale price.
  • Expensive labor, supply chain issues, and a rise in material costs can further increase your expenses.
  • In most cases, it is more affordable to buy a turnkey home and move in quickly.

Can You Build Your Own House?

Yes, you can build your own house, if you have land in an area of your choice. You have to budget for the time and the cost of building your home though. You will also need permits to build your house.

Permit fees depend on the home value or the construction area. Home building permit laws vary across counties. Refer to your local county’s website or office for more information.

Is it Cheaper to Build or Buy a House?

It is usually cheaper to buy a home than build a new one. However, by building your own home you get a brand-new residence, customized to your needs.

It costs $305,829 on average to build a home. This figure can add up to $480,000 if you include land costs, excavations, permits, and other expenses. A new home construction can take up to 9 to 12 months.

Whereas you can buy a home for $413,874 (median sale price as of November 2023) in 1.5 to 2 months. So, buying a turnkey home is not just cheaper but also faster.

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How Much Does it Cost to Build a House?

The average cost per square foot to build a house is $150 sq. ft. This doesn’t include land costs, permit fees, excavations, and other costs.

Average Cost of Building a House

RangeBuilding Cost
National Average Cost$295,881
Minimum (800 sq. ft.)$120,000
Maximum (5,000 sq. ft.)$750,000
Average Range$110,000 - $480,000

Source: HomeAdvisor

Average Cost to Build a House Per the Number of Bedrooms

The table below shows the building costs based on the number of bedrooms:

House Area RangeNumber of Bedrooms Average Cost
976 sq.ft. to 2,400 sq.ft.3 Bedrooms$146,400
1,900 sq.ft. to 2,800 sq.ft.4 Bedrooms$285,000
2,500 sq.ft. to 3,000 sq.ft.5 Bedrooms$375,000

Source: HomeAdvisor

Average Cost to Build a House by Square Footage

The table below shows construction cost per square foot for different home sizes:

Home SizeAverage Price Range
1,000 sq. ft.$100,000 – $200,000
1,500 sq. ft.$150,000 – $300,000
2,000 sq. ft.$200,000 – $400,000
2,500 sq. ft.$250,000 – $500,000
3,000 sq. ft.$300,000 – $600,000

Source: HomeAdvisor

Average Home Building Costs by State

Below is the table showing the average cost to build a 2,500-square-foot house in each state:

StateAverage Home Building Cost
Average Cost to Build a House in Alaska$656,250
Average Cost to Build a House in Alabama$362,500
Average Cost to Build a House in Arizona$515,625
Average Cost to Build a House in Arkansas$146,875
Average Cost to Build a House in California$500,375
Average Cost to Build a House in Colorado$325,125
Average Cost to Build a House in Connecticut$687,500
Average Cost to Build a House in Delaware$408,825
Average Cost to Build a House in District of Columbia$362,500
Average Cost to Build a House in Florida$368,750
Average Cost to Build a House in Georgia$312,500
Average Cost to Build a House in Hawaii $516,050
Average Cost to Build a House in Idaho$394,400
Average Cost to Build a House in Illinois$331,800
Average Cost to Build a House in Indiana$274,125
Average Cost to Build a House in Iowa$267,550
Average Cost to Build a House in Kansas$250,000
Average Cost to Build a House in Kentucky$350,725
Average Cost to Build a House in Louisiana$266,750
Average Cost to Build a House in Maine$352,675
Average Cost to Build a House in Maryland$362,500
Average Cost to Build a House in Massachusetts$531,250
Average Cost to Build a House in Michigan$306,250
Average Cost to Build a House in Minnesota$296,225
Average Cost to Build a House in Mississippi$300,000
Average Cost to Build a House in Missouri$283,450
Average Cost to Build a House in Montana$373,700
Average Cost to Build a House in Nebraska $263,625
Average Cost to Build a House in Nevada$404,375
Average Cost to Build a House in New Hampshire$384,375
Average Cost to Build a House in New Jersey$506,250
Average Cost to Build a House in New Mexico$396,875
Average Cost to Build a House in New York$750,000
Average Cost to Build a House in North Carolina$481,250
Average Cost to Build a House in North Dakota$337,500
Average Cost to Build a House in Ohio$278,100
Average Cost to Build a House in Oklahoma$343,750
Average Cost to Build a House in Oregon$359,375
Average Cost to Build a House in Pennsylvania$496,875
Average Cost to Build a House in Rhode Island$422,725
Average Cost to Build a House in South Carolina$437,500
Average Cost to Build a House in South Dakota$255,525
Average Cost to Build a House in Tennessee$353,125
Average Cost to Build a House in Texas$330,125
Average Cost to Build a House in Utah$293,750
Average Cost to Build a House in Vermont$320,875
Average Cost to Build a House in Virginia$475,000
Average Cost to Build a House in Washington$406,250
Average Cost to Build a House in West Virginia$376,400
Average Cost to Build a House in Wisconsin$387,500
Average Cost to Build a House in Wyoming$363,025

Cost Breakdown of Building a House

To paint a better picture, here is a house building cost distribution for a 2,500 sq. ft. house:

Hard Costs of Building a Home

Hard costs comprise expenses directly involved in the home-building process.

1. Material Cost to Build a House: $125,000

Building materials make up approximately 50% of the overall construction prices. You can expect to spend about $50 per square foot on material costs.

The Chief Economist at Associated General Contractors of America, Ken Simonson, expects price hikes and shortages to ease for some products, and to remain volatile for others in 2023.

Here are the material costs you must account for while building your home:

  • Flooring Cost: $2 to $20 per sq. ft.
  • Drywall Cost: $12 to $20 per panel
  • Lumber Cost: $10 to $12 per sq. ft.
  • Siding Cost: $1 to $14 per sq. ft.

2. Contractor(s) Charges: 10% – 20%

You need a contractor or a firm to manage the construction process. A general contractor hires several other professionals involved in the home-building process. They include:

  • Electricians
  • Architects
  • Floor installers
  • Plumbers
  • HVAC installers
  • Carpenters, etc.

A contractor charges around 10% to 20% of the total construction value. The fee depends on several factors, such as property type, detailing, materials, and workforce. Apart from a contractor fee, ensure to account for each professional’s hourly rates.

The average hourly rates of home building professionals in the US are as follows:

ProfessionalsHourly Rate*
Flooring Installers$20.61
Roofers$22.42
Painters$19.71
Brick Masons$24.94
Landscapers$17.93
General Contractors$24.61
Plumbers$27.33
Carpenters$23.41
HVAC Technicians$26.76
Structural Engineers$39.69
Electricians$27.48
*Hourly rates are sourced from indeed.com and may exclude equipment charges.

3. Electrical Costs: $7,500 – $12,500

The electrical cost for new construction per square foot is $3 to $6. This amount includes both the rough-in as well as the finishing work.

The amount you spend on electrical work will differ depending on the property size, type of wiring, wire material, etc. Some electricians can charge up to $120 per hour.

4. Roof Installation Costs: $5,500 – $33,000

The cost of roofing depends on the type of material you select, the roof’s slope, and the size of your home. The table below displays home roofing prices per square foot for various materials:

Roofing Material Average Cost Per 100 Sq. Ft.
Asphalt Shingle Roof$219.55
Tile Roof $1,019.34
Wood Shake Roof$635.13
Slate Roof$1,319.92

Source: ProMatcher

5. Plumbing Costs: $12,000

Plumbing costs include installing plumbing fixtures such as toilets, faucets, wash basins, bathtubs, etc. Homeowners spend around $4.50 per sq. ft. in plumbing in new construction or $4,080 on average.

You require a plumber to fix the pipes and lay the sewage lines. You also need to install washing machines, dryers, and geysers while custom-building a home.

6. HVAC Installation Costs: $15,000

Homeowners pay $1,500 to $12,500 to install a new HVAC system. This cost can further vary as per the size of the cooling area, the type of system, the brand, etc. All these additional factors can increase the HVAC installation cost by $2,000 or more.

Soft Costs to Build a House

Soft costs in home construction contribute to the building process indirectly. They include costs like land costs, permit costs, design costs, etc.

1. Cost of Buying and Prepping Land: $17,000 Per Acre

Before you build your house you need to shop for land to build it on. You will incur two costs related to land:

  • Land Purchase Cost: The average price per acre in the United States is $14,038. The cost of land depends on the size of the house you wish to build as well as the location.
  • Preparation Cost: You need to clear the land and level it before starting the construction process. Land preparation costs can be anywhere between $1,500 – $3,000.
Five Most Expensive States to Purchase Land
#StateAvg. Cost Per Acre
1.New Jersey$196,410
2.Rhode Island$133,730
3.Connecticut$128,824
4.Massachusetts$102,214
5.Maryland$75,429

Source: Zippia

You can buy undeveloped land to save land costs but you might have to incur other expenses like leveling, filling, etc. to make the land construction-ready.

Five Cheapest States to Purchase Land
#StateAvg. Cost Per Acre
1.Wyoming$1,558
2. New Mexico$1,931
3.Nevada$2,116
4.South Dakota$2,135
5.Montana$2,283

Source: Zippia

    🤔 Is it cheaper to build a house if you already own land?


    Yes. In most cases, building a house is cheaper if you own the land. You will incur only the cost of building the home. Plus, you can customize your home to your requirements!


2. Permit Costs: $3,000

In the U.S. contractors need a building permit to construct a new house. Construction or building permits are legal documents that authorize the house-building process. State laws often have different charges for commercial and residential building permits.

The permit costs, and building codes, vary per county and are usually charged based on the construction type, occupancy type, home building area, and project scope.

Some permits you may need along with their average cost are as follows:

  • Building Permit: $1,000 to $2,000
  • HVAC Permit: $250 to $400
  • Plumbing Permit: $50 to $500
  • Electrical Permit: $10 to $500

Read state-specific articles on the cost of building a new home for more information on building permits.

3. Home Interiors: $20,000

Before you move into your new home, you’ll need furniture, electronics, utensils, silverware, and bathroom essentials.

The costs will depend upon your taste, quality of finishes, location, and the outlet you order from. For a 2,500 sq. ft. home, you should budget at least $20,000 on interior furnishings.

4. Home Interior Designer Costs: $5,400

If designing your own home interior isn’t your thing, you can hire an interior designer. A great interior designer will provide you with 3D views and renderings of your home.

An interior designer will also order the right furniture, wall prints, rugs, etc. based on your taste and requirements. They can also help you maximize space utilization.

The cost of an interior designer isn’t cheap. You can budget $5,400; it can be more or less depending on your requirements.

House Building Financing Options

Here are the typical home-building financing options available for you:

Home Construction Loans

The two most prominent home construction loans are:

  • Construction-to-Permanent Loan: This loan covers land purchases and home-building costs. It is converted to a conventional mortgage after the construction is complete and you move into the house.
  • Construction-only Loan: It only covers the cost of home building. After your home is ready, the entire loan amount is due. You can pay back the loan in cash or take out a mortgage.

Personal Loan

A personal loan will not cover your entire home-building cost. You can opt for a personal loan to finance a specific part of the construction. For example, you can finance landscaping through a personal loan.

Home Equity Loan

A home equity loan applies to homeowners who already have a property and want to finance new construction. 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?

You can build a house yourself or hire a general contractor if you own land in a location you want to live in. You can budget 9 to 12 months to plan and construct your new home.

However, if you don’t own land, we recommend you house-hunt for turnkey homes and move in quickly.

Find Your New Home With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale on Houzeo.

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Where do you want to live?

» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Frequently Asked Questions

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

The average cost to build a house per square foot in the USA is about $100 to $155. So, you would have to spend around $200,000 to $310,000 to build a 2,000-square-foot. These costs will vary depending on the exact location, property types, labor costs, material costs, etc.

2. How much is the cost to build a house if you already own the land?

The cost to build a house if you already own the land is between $110,000 to $480,000, with $295,881 as the national average.

3. Is it really expensive to build a house?

The average home building cost in the US is $295,881. However, this can go up to millions depending upon the property size, type, and how much you spend on the individual components.

4. What are the disadvantages of building a house?

The following are the disadvantages of building a house:

1. It takes 9 to 12 months to build a house from scratch.
2. In most cases, building a home is more expensive than buying a new one.
3. The home-building costs have several components, and you have to manage them on your own.

5. What costs the most when building a house?

Framing costs the most when building a house. A high-quality lumber framing can cost up to $33,000.

6. What kind of loan do I need to build a house?

You can opt for the following loans to build a house:

1. Home construction loans
2. Personal loans
3. Home equity loans

» Construction Loans: Everthing You Need to Know

7. What is the cheapest type of house to build per square foot?

A ranch house is the cheapest to build. It costs about $150 per square foot to build a ranch house in the US.

8. How much does it cost to buy land and build a house?

The average cost to price a house in the US is $295,881, excluding the land cost. And the average land purchase price stands at 10,871 square feet. So, depending on the land size and the home size, you can spend anywhere between $110,000 and $480,000. This amount can reach millions in some cases.

Cost to Build a Home Near Me

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How Much Does it Cost to Build a House

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