How Much Does It Cost to Build a House?

Whether you’re frustrated with today’s limited housing inventory or just can’t seem to find a property that checks all the right boxes, building a house can be a good option. Unlike purchasing an existing home, building a house offers full control of the size and design choices, allowing you to be part of the creative process to truly make it your own.

Let’s face it: Building a house from top to bottom is expensive, so it’s important to know the overall cost long before investing in property. The U.S. national average to build a house is $314,999, not including the cost of the land, according to the database of Angi, a home services website, although prices will vary significantly depending home size, location and building materials.

“Your builder and architect can have a big impact on the cost, as well as the land you buy, the interior and exterior finishes of the home, any permits and inspections you might need in the area and any delays you might experience,” says Angie Hicks, co-founder of Angi.

To help you make the right decisions, we checked in with industry professionals, who share current national averages of building costs and timelines, as well as helpful tips for budgeting and where to invest the most during construction.

The average cost to build a house is $150 per square foot, but can cost upwards of $500 in larger cities like New York City or San Francisco. “The size and type of house you choose to build will impact the cost per square foot, but you can generally expect to pay between $100 and $500 per square foot,” says Hicks.

Knowing the average cost per room can help determine the cost of building a new house. Assuming your house will cost an average of $150 per square foot, here’s how much it costs on average to build each room:

Bedroom

A small bedroom that’s approximately 400 square feet will cost anywhere between $32,000 and $80,000, while a larger room (about 1,000 square feet) ranges between $80,000 and $200,000. “Adding a room to a home costs $48,000 on average, but can range from $20,900 to $72,600 or upwards, depending on materials, labor and room type,” says Hicks.

Kitchen

Most homeowners choose to allocate a large portion of their budget to designing the kitchen. You can expect to pay anywhere from $35,000 to $95,000 when building a new kitchen, with the current national average being $65,000. The size of the kitchen, its location within the home and the finishes will impact the cost.

Bathroom

According to Angi, the average cost to add a full bathroom is between $10,000 and $50,000, which includes a bathtub, sink, toilet and shower.

Deck or Porch

The average cost of building a deck is $8,1784. However, Angi found the range is between $4,343 to $12,508. Factors like deck size, deck material costs and the intricacy of your design, will impact the overall price. There’s also the cost of labor to consider. “While a small open porch could cost about $4,000, a wraparound porch with features like lighting, fans, heaters and more could be over $90,000,” says Hicks.

It can be challenging to stick to a budget when building a house — especially when you run into unexpected problems. When it comes to finishes and materials, some things are worth the investment, but there are some places where you can save. David Bratton, who has 30 years of experience as a builder and owns Texas-based Watermark Homes, shares ways to cut down on building costs:

• Reduce the size of the house by eliminating a bedroom or two, or reducing their size.
• Instead of opting for high-end finishes, choose budget-friendly alternatives that give you the look for less.
• Design a thoughtful lighting plan over a basic grid layout.
• Instead of top-of-the-line appliances, go for mid-range products, which can always be upgraded later.
• Avoid making unnecessary changes, which can result in extra costs and cause delays.
• Stick with a simple roof frame. In terms of material cost and labor, the roof is an expensive component of a new build. Going for a standard choice is a smart way to keep costs down.

Another budget-friendly option is to consider a prefab home, which will deliver to your home site already built. “Prefab home kits are one of the fastest, easiest ways to build a home, whether you want to go sleek and contemporary or a more traditional cottage or ranch design,” says Dan DiClerico, GH’s Home Improvement & Outdoor director. The average cost of a prefab home ranges from $50,000 to $300,000, according to Angi.

Once you have determined your budget, create a list of must-have items — whether that’s a certain number of bedrooms or a chef’s kitchen with a high-end range — and prioritize them based on your needs. “Think critically about what is important to you and spend in those areas and save in others,” advises Hicks.

Interior finishes, from flooring to kitchen countertops and cabinets, tend to be the most expensive part of building a home. “While everyone might choose to spend different amounts on various aspects of their home, most people can expect to spend the most on interior finishes, followed by the land, general contractor, major home systems, exterior finishes, foundation and framing,” Hicks says.

While you might choose to invest in luxury finishes or appliances, the systems and structure of the home are the most important. Hicks recommends thorough research to find the right heating and cooling system, a high-quality roof that will hold up over time and setting up your home to avoid potential flooding. “By investing in these things early, you’ll save a lot of money down the line.” To prevent repairs in the future, here are the key areas to invest in:

✔️ Building a new house takes an average of eight months. It’s important to be realistic about the timeline and understand that the process can take much longer due to a variety of unforeseen roadblocks. Some of the most common delays include uncooperative weather conditions, waiting on building materials or learning that finishes are backordered.

✔️ Hiring the right builder is so important. “Choose a builder you can trust, who has experience, integrity and a very strong work ethic,” says Bratton. Two other key roles that have a huge impact on building a house are the architect and interior designer, which is why Bratton says, “Choose an architect and interior designer who listens to you and will tell you the truth.”

✔️ So is your general contractor. A big part of your general contractor’s job is to keep the project on track and guide you through the process.

✔️ Set aside money for unexpected expenses. Although the cost of building a house depends on a variety of factors, ranging from the size to the location, Hicks says it’s a good idea to set aside an additional $50,000 on top of your initial budget for any unexpected expenses that may arise. “The most important thing when starting your building project is to understand your budget and stick to it,” Hicks says. This extra money provides a safety net and helps avoid lengthy delays should there be any complications, price increases or necessary building changes.

Source: Home Ideas - goodhousekeeping.com