How Much Does It Cost to Build a House?

The cost per square foot to build a house can fluctuate based on the home’s size and design, the labor costs and the type of building materials. The construction cost per square foot to build a house is about $150. The average cost to build a house is $282,299 in the United States.

However, different parts of the county can have sharply different home building prices. The states with the highest average costs to build a 2,000-foot house are Alaska, Hawaii and California. The states with the lowest costs are South Dakota, Kansas and Nebraska.

The average cost to build a 1,500 square foot house is between $150,000-$300,000. Factors that can drive up costs include the size of the home, the choice of building materials, labor costs and the expense of cabinets, countertops and other fixtures.

The U.S. housing market has increased in recent years. The average U.S. home price exceeded $400,000 in May of 2022 and is expected to increase by the end of the year. Read our forecast Housing Market Predictions for 2022 & Beyond.

Pro Tip: When budgeting for building a home, set aside a fund of 15% of the estimated cost to cover unexpected expenses and overruns.

Construction costs are the total costs of labor and materials for building a house.

These are the average construction costs for major home exterior elements:

• Foundation costs, including the costs of pouring the concrete, vary based on type. Builders may need to excavate the site before laying the foundation. Preparing and laying the foundation has an average cost of $14,500.
• Framing is usually the most expensive element of home building in both labor and materials. The national average for framing, including buying the lumber and installing the frame, is $35,000. (See our 101 Guide to House Framing.)
• Roofing and installing shingles can cost between $5,500-$11,500. In addition, installing siding to the exterior costs an average of $12 per square foot.
• Driveways cost an average of $4,500 for paving. Gravel driveways can be up to $3,000 cheaper.

These are the average construction costs for major home interior elements:

• HVAC installation, including ductwork, air conditioning and a furnace, can cost between $7,000-$12,500 depending on the size of the house, the area climate and other factors. Building a masonry fireplace can add $4,000-$5,000 to the cost.
• Plumbing prices vary greatly depending on the type of material, with copper being more expensive than PVC or PEX. Copper pipe installation can cost about $9,000 for a 1,500 square foot home, while other options can be half as much. Plumbing fixtures cost about $5,000.
• Electrical wiring costs an average of $4 per square foot, or $8,000.
• Insulation costs an average of $4,000 depending on the choice of materials.
• Drywall can range from $15,000-$25,000, or $2.25 per square foot, for materials and labor.
• Doors & windows cost from $6,000-$8,000 for materials and labor. Installation of interior doors averages $250 each and exterior doors from $400-$3,500, depending on the type of door.
• Cabinets & countertops are essential items for a finished kitchen. The most basic, builder-grade cabinets cost an average of $6,500, but higher-end cabinets can be significantly more expensive. Countertops average $2,450.
• Flooring comes in many options and averages from $1,500-$4,500 (or $6-$10 per square foot). In addition, trim costs about $1,500.
• Painting the home costs around $5 per square foot or an average total of $7,000. (For more detail on home-painting expenses, read How to Make a Winning Bid on a Paint Job.)
• Fixtures add finishing touches to a home’s systems. Plumbing fixtures range from $3,000-$5,000 and lighting fixtures average about $3,500.

When determining how much it is to build a house, bear in mind that materials and labor tend to be about 75% of the total costs of custom builds. Other major expenses can include so-called “soft costs” such as architecture, permitting, pre-construction and post-construction expenses.

These are the other major expenses for building a home, separate from construction costs.

• Buying the plot of land. The average cost of purchasing land for home building is $76,500. In rural areas, unfinished plots have an average cost of $3,380 per acre, based on data from the U.S. Department of Agriculture.
• Preparation of unfinished plots can cost $1,500-$3,000 for clearing trees, leveling and more.
• Demolition, deconstruction and debris removal costs are required if you’re planning to replace a tear-down. These costs range from $6,000-$20,000 but can be significantly more if you want to keep old fixtures intact for resale.
• Water and sewage inspection may be necessary to ensure the home has adequate water supply and waste drainage systems. These can cost up to $4,500 but will be significantly less on finished plots of land.
• House plans and architecture fees can range from $500-$3,500.
• Building permits and related fees have an average cost of $2,200.
• Major appliances are not always included in construction costs. New kitchen appliances cost an average of $3,750, while washing machine and dryer sets cost $1,400 on average.
• Decor and furniture for a new home may require a budget of at least $20,000.
• Attractive landscaping might seem like a low priority during home construction, but it shows benefits in the future. Planting grass, young trees and shrubs as early as possible serves as an investment in the home’s future curb appeal. Simple landscaping can cost $2,000.

Pro Tip: Some clients may need temporary lodging while their new home is being built. Pros may advise clients to include their living expenses during construction as part of their overall budgeting.

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