Construction Calculator

How much does it cost to build a house?

Constructing a home comes with a myriad of advantages. Not only do you sidestep the hassle of house hunting or engaging in bidding wars, but you also get the pleasure of designing a dwelling that perfectly suits your preferences and lifestyle. Yet, embarking on the journey of building your own abode brings forth expenses that are often absent in the process of buying a pre-existing property. Indeed, building typically demands more financial outlay than purchasing. As exciting as it may be, it's crucial to be financially prepared.

There are numerous compelling reasons why someone might opt to build a house. You may have already secured an exquisite parcel of land. Or perhaps the housing options in your area are limited or priced out of reach. You might even envision constructing an investment property to rent or sell. So, how much will it really cost to raise a house from the earth up? That, indeed, is the million-dollar question. The truth is, the cost of constructing a home varies significantly depending on three pivotal factors.

The first consideration is the house’s dimensions. A 5,000-square-foot property will, unsurprisingly, demand a much larger budget than a modest 2,000-square-foot dwelling. The second key element is the quality of finishes and amenities—whether you opt for budget-friendly laminate or indulge in luxurious marble countertops will markedly influence the total cost. Finally, geographical location plays a significant role. Just as real estate prices differ regionally, so too do construction costs. Building in the Northeast or West tends to be more expensive than in the Southern states.

Excluding the cost of the land, constructing a house typically hovers around $300,000. Given the vast array of architectural styles, from sustainable eco-homes to converted shipping containers and high-tech residences, it's hardly surprising that new builds can range from as little as $30,000 to several million dollars. The ultimate price tag depends heavily on your personal preferences, your region, and the costs of labour and materials. It's wise to allocate an additional 15% as a contingency fund for unexpected expenses or mid-construction adjustments.

A 2,000-square-foot house is sufficient for an average American family of three to four. On the other hand, if your heart is set on luxury or custom features, the cost can rise in accordance with your financing ability. Basic new homes typically cost around $150 per square foot.

Location is the biggest determiner of your construction costs, influencing everything from land prices to the availability and cost of labour, materials, and delivery. To ensure you get the best quality and price, it’s advisable to seek multiple quotes from local contractors. Bear in mind, however, that building costs can differ dramatically between urban and rural settings. It’s also important to remember that these figures don’t include the land itself or the price of additional features like basements, garages, or decks.

How to make a house plan?

Whether you opt for a ready-made design from a company or builder, or decide to enlist an architect to create a bespoke masterpiece, always bear in mind that the more customised your plan, the steeper the price. Standard house plans generally cost between $2,000 and $8,000. Once you’ve settled on your ideal blueprint, the next step is to approach a builder or general contractor with your bid package in hand. This document includes everything your contractor will need to provide an accurate estimate of construction costs: floor plans, exterior views, and roof pitches, among other things. A thorough review of these plans will enable your contractor to raise any questions or concerns and ensure that all regional building codes and permits are accounted for. The cost of a building permit ranges between $1,200 and $2,000, depending on location. Additional permits may be required for things like plumbing, electrical work, HVAC systems, or basements.

What factors affect the house construction cost?

Expect to dedicate around half of your overall budget to building materials. Lumber is typically the priciest, with national averages ranging from $25,000 to $65,000, and prices climbing steadily. Roofing, siding, flooring, drywall, and concrete are also significant expenditures. Larger homes, naturally, require more materials.

Labour costs generally make up about 40% of your total expenses. These costs vary depending on the size of your house, your location, and your contractor’s ability to source affordable subcontractors. Custom homes, with their intricate designs, will naturally require more specialised labour than smaller, simpler modular homes.

Interior and exterior finishes also contribute heavily to the overall cost. These final touches transform a mere structure into a comfortable, inviting home. Whether you're choosing flooring, paint, or the material for your countertops, each decision adds a unique element to the home’s aesthetic appeal.

The price of the land on which you build will also significantly impact your overall costs. The typical lot size for a new single-family home in the US is around one-fifth of an acre. If the lot isn’t yet connected to utilities, you’ll need to account for additional expenses to hook up water, sewer, electricity, and cable services. Proper site preparation, including obtaining plans and permits, must also be factored into your budget before construction begins.

You have the freedom to build a house of any size, with as many or as few rooms as you desire. If your budget allows, you can also consider adding luxury features such as a basement, theatre room, or a large garden with outdoor amenities like a tennis court.

Your budget will dictate the extent of your project. Whether you aim for a simple structure with basic materials or a luxury home featuring high-end finishes, it's essential to select a price range that fits both your vision and financial means.

If you’re set on living in a newly constructed home and there are few such homes available in your area, building may be your best option. To make an informed decision, get personalised quotes from builders and real estate professionals in your region, as prices and availability can vary widely across markets.