{"id":51531,"date":"2021-06-03T08:26:51","date_gmt":"2021-06-03T16:26:51","guid":{"rendered":"https:\/\/www.credible.com\/blog\/?p=51531"},"modified":"2023-02-06T13:48:04","modified_gmt":"2023-02-06T21:48:04","slug":"how-much-does-it-cost-to-build-a-house-in-2022","status":"publish","type":"post","link":"https:\/\/www.credible.com\/blog\/mortgages\/how-much-does-it-cost-to-build-a-house\/","title":{"rendered":"How Much Does It Cost to Build a House in 2022?"},"content":{"rendered":"<p>Finding the perfect house can be difficult, especially when inventory is tight. If the homes in your intended area are too big, too small, or not quite right, you might consider building a house from scratch.<\/p>\n<p>While there\u2019s more work involved, this could be a cheaper option that allows you to customize your home.<\/p>\n<p><b>Here\u2019s what to know about the costs involved in building a house:<\/b><\/p>\n<ul>\n<li><a href=\"#average-cost-building-house\">What\u2019s the average cost of building a house?<\/a><\/li>\n<li><a href=\"#cheaper-build-buy-house\">Is it cheaper to build or buy a house?<\/a><\/li>\n<li><a href=\"#factors-homebuilding-costs\">The factors behind your homebuilding costs<\/a><\/li>\n<li><a href=\"#breakdown-costs\">Breakdown of homebuilding costs<\/a><\/li>\n<li><a href=\"#calculate-costs\">How to calculate the cost of building a house<\/a><\/li>\n<li><a href=\"#what-you-can-afford\">What you can afford by budget<\/a><\/li>\n<li><a href=\"#when-consider-building\">When to consider building a house<\/a><\/li>\n<\/ul>\n<p><a name=\"average-cost-building-house\"><\/a><\/p>\n<h2>What\u2019s the average cost of building a house?<\/h2>\n<p>A new home costs $100 to $200 per square foot to build, according to <a href=\"https:\/\/www.homeadvisor.com\/cost\/architects-and-engineers\/build-a-house\/\">HomeAdvisor<\/a>, but recent data suggests you\u2019d have a difficult time building a house at the lower end of that range. <\/p>\n<p>Building costs vary by location, size, and the style of the home. You\u2019ll also need to factor in the cost of labor, building materials, and interior finishes.<\/p>\n<p>All of these factors can drive the per-square-foot cost up to $400 or more in expensive cities like New York and San Francisco. Home prices have also gone up during the pandemic due to high demand and limited inventory.<\/p>\n<p class=\"featured-box featured-box--isGreen\">The median price of a new construction home was $416,900<sup><a href=\"#1\">1<\/a><\/sup> in November 2021, while the median size was 2,337 square feet<sup><a href=\"#2\">2<\/a><\/sup>. Taking these figures into account, $178 is a realistic cost per square foot.<\/p>\n<p><a name=\"cheaper-build-buy-house\"><\/a><\/p>\n<h2>Is it cheaper to build or buy a house?<\/h2>\n<p>Depending on the size of your home and the customization you need, it could be cheaper to buy an existing home. Here\u2019s a comparison of median prices for new and existing homes as well as the average cost to build a home:<\/p>\n<ul>\n<li><b>Building a home:<\/b> $283,965<\/li>\n<li><b>Buying a new home: <\/b>$416,900 <\/li>\n<li><b>Buying an existing home:<\/b> $358,000<sup><a href=\"#3\">3<\/a><\/sup><\/li>\n<\/ul>\n<p>If you decide to buy a home, you\u2019ll want to shop around for a good <a href=\"https:\/\/www.credible.com\/mortgage\">mortgage<\/a> lender. Credible allows you to compare loan options from all of our partner lenders hassle-free.<\/p>\n<p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3><span style=\"font-size: x-large;\"><strong>Credible makes finding a mortgage easy<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\">Compare prequalified mortgage rates from top lenders in just 3 minutes.<\/h6>\n<ul class=\"list--iconArrow accent--isGreen list--iconCheckmarkSolidCircle\">\n<li>Personalized rates, not generic<\/li>\n<li>One simple, safe TLS-encrypted form<\/li>\n<li>No spam calls from lenders<\/li>\n<li>Checking rates is free, with no commitment<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-box-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><br \/>\n<!-- TrustBox widget - Micro Combo --><\/p>\n<div class=\"trustpilot-widget\" data-locale=\"en-US\" data-template-id=\"5419b6ffb0d04a076446a9af\" data-businessunit-id=\"5536ec090000ff00057eebe7\" data-style-height=\"20px\" data-style-width=\"100%\" data-theme=\"light\"><a href=\"https:\/\/www.trustpilot.com\/review\/www.credible.com\" target=\"_blank\" rel=\"noopener noreferrer\">Trustpilot<\/a><\/div>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n\n<p><a name=\"factors-homebuilding-costs\"><\/a><\/p>\n<h2>The factors behind your homebuilding costs<\/h2>\n<p>The cost of building a new home varies, based on a number of factors. If you\u2019re thinking about taking this route, consider the following factors. The tables below use data sourced from <a href=\"https:\/\/www.homeadvisor.com\/cost\/architects-and-engineers\/build-a-house\/\">HomeAdvisor<\/a> unless noted otherwise.<\/p>\n<h3>Square footage<\/h3>\n<p>The size of your new home will greatly influence the cost. Generally, a larger home costs more to build because you\u2019re using more materials. The median size of a new single-family home as of November 2021 was 2,337 square feet, according to the Census Bureau. <\/p>\n<p>Here\u2019s what you might pay to build a home assuming a $178 cost per square foot:<\/p>\n\n<table id=\"tablepress-719\" class=\"tablepress tablepress-id-719 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Square footage<\/strong><\/td><td class=\"column-2\"><strong>Price range<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">1,000<\/td><td class=\"column-2\">$178,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">1,500<\/td><td class=\"column-2\">$267,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">2,000<\/td><td class=\"column-2\">$356,000<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">2,337<\/td><td class=\"column-2\">$415,986<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">2,500<\/td><td class=\"column-2\">$445,000<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">3,000<\/td><td class=\"column-2\">$534,000<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<p><b><i>Learn More: <\/i><\/b><a href=\"https:\/\/www.credible.com\/blog\/mortgages\/buying-new-construction\/\"><b><i>How to Buy a New Construction Home<\/i><\/b><\/a><\/p>\n<h3>Location<\/h3>\n<p>Location impacts the price of construction in a few ways. The same house in one state might cost twice as much to build as it would in another because of variations in the cost of labor, materials, regulations, and permit requirements.<\/p>\n<p>Plus, the actual site of the home \u2014 with its unique size, shape, soil, and climate \u2014 will also impact the cost. For instance, steep slopes or poor soil will typically require more engineering and foundation work.<\/p>\n<p>Here\u2019s what it can cost to build a home in certain U.S. cities. The price listed is the high-end average cost of actual home building projects as reported by HomeAdvisor members, but your home\u2019s final cost may vary substantially:<\/p>\n\n<table id=\"tablepress-720\" class=\"tablepress tablepress-id-720 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>City<\/strong><\/td><td class=\"column-2\"><strong>Price range to build a home<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Austin, Texas<\/td><td class=\"column-2\">$500,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Denver<\/td><td class=\"column-2\">$600,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Los Angeles<\/td><td class=\"column-2\">$1,200,000<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">New York City<\/td><td class=\"column-2\">$850,000<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Washington, D.C.<\/td><td class=\"column-2\">$696,000<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<h3>Labor<\/h3>\n<p>Labor costs account for about 40% of the home-building budget. These labor costs vary with each region, the size and complexity of the house, and your general contractor\u2019s buying power. Larger homes that require more customization cost more than smaller homes that are built using prefabricated pieces.<\/p>\n<p>Some of the professionals who you may hire include:<\/p>\n\n<table id=\"tablepress-721\" class=\"tablepress tablepress-id-721 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Labor professional<\/strong><\/td><td class=\"column-2\"><strong>Price range<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Construction manager<\/td><td class=\"column-2\">$4,000 to $43,000 total<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Electrician<\/td><td class=\"column-2\">$50 to $100 per hour<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Roofer<\/td><td class=\"column-2\">$5,000 to $10,000 total<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Plumber<\/td><td class=\"column-2\">$50 to $200 per hour<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Concrete contractor<\/td><td class=\"column-2\">$4,000 to $13,000 total<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Framer<\/td><td class=\"column-2\">$10 to $20 per square foot<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<h3>Materials<\/h3>\n<p>The materials used to build your home may take about 50% of your total budget. But the cost is heavily influenced by the quality of the material you choose. When you\u2019re in the planning stages, you can work with the builder to choose materials that fit within your budget. They\u2019ll give you an estimate based on your designs.<\/p>\n<p>Here\u2019s a cost breakdown of some of the basic materials your builder will need to buy:<\/p>\n\n<table id=\"tablepress-722\" class=\"tablepress tablepress-id-722 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Material<\/strong><\/td><td class=\"column-2\"><strong>Price range<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Lumber<\/td><td class=\"column-2\">$25,000 to $65,000 total<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Concrete<\/td><td class=\"column-2\">$1,000 to $10,000 total<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Drywall<\/td><td class=\"column-2\">$10 per sheet<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Flooring<\/td><td class=\"column-2\">$1 to $5 per square foot<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Siding<\/td><td class=\"column-2\">$2 to $15 per square foot<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<h3>Special features<\/h3>\n<p>If you\u2019re looking to build a luxury or custom home, the price per square foot increases to $200 to $500 per square foot. But you can add one or two special features \u2014 such as a swimming pool, heated floors, higher ceilings, or a basement \u2014 to better fit your budget.<\/p>\n<p>Amenities like these can help you enjoy your new home, but they\u2019ll increase your budget accordingly. Here\u2019s the price tag on a few popular features:<\/p>\n\n<table id=\"tablepress-723\" class=\"tablepress tablepress-id-723 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Special feature<\/strong><\/td><td class=\"column-2\"><strong>Price range<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Swimming pool<\/td><td class=\"column-2\">$36,750 to $66,500 total<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Heated floors<\/td><td class=\"column-2\">$6 to $20 per square foot<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Basement (unfinished)<\/td><td class=\"column-2\">$10,000 to $30,000 total<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Outdoor deck<\/td><td class=\"column-2\">$4,087 to $11,234<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<p><b><i>Find Out: <\/i><\/b><a href=\"https:\/\/www.credible.com\/blog\/mortgages\/how-to-buy-a-house\/\"><b><i>How to Buy a House: Step-by-Step Guide<\/i><\/b><\/a><br \/>\n<a name=\"breakdown-costs\"><\/a><\/p>\n<h2>Breakdown of homebuilding costs<\/h2>\n<p>The cost of building a house varies depending on where you\u2019re building, the size of the home, the materials you use, and other factors, but the following cost breakdown should give you an idea of the price ranges you can expect:<\/p>\n\n<table id=\"tablepress-724\" class=\"tablepress tablepress-id-724 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Type of cost<\/strong><\/td><td class=\"column-2\"><strong>Price range<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Clearing land<\/td><td class=\"column-2\">$4,500 to $150,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Paying for house plans<\/td><td class=\"column-2\">$2,000 to $8,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Getting building permits<\/td><td class=\"column-2\">$400 to $2,250<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">Laying the foundation<\/td><td class=\"column-2\">$16,600 to $72,000<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Framing the house<\/td><td class=\"column-2\">$16,600 to $95,000<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Interior finishes<\/td><td class=\"column-2\">$42,000 to $167,000<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">Installing major systems<\/td><td class=\"column-2\">$17,000 to $72,000<\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<h3>Buying and clearing land: $4,500 to $155,000<\/h3>\n<p>Before you build a home, you\u2019ll need to buy a plot of land. The average lot size is nearly 22,100 square feet, or about a half-acre, according to the National Association of Home Builders (NAHB).<\/p>\n<p>Depending on the size you choose and whether utilities and sewer lines are available, a piece of land may range from $3,000 to $150,000, although it can be much more in higher-cost areas. Then, hiring people to clear your land for construction prep costs between $1,500 and $5,000.<\/p>\n<h3>Paying for floor plans: $2,000 to $8,000<\/h3>\n<p>Once you\u2019ve bought your land, you\u2019ll need to hire professionals to draw up floor plans for the house. You might pay about $2,000 to $8,000 for the plans, which you\u2019ll hand to your builder. They\u2019ll use the plans to give you a \u201ccost to build\u201d estimate.<\/p>\n<p><b><i>Keep Reading: <\/i><\/b><a href=\"https:\/\/www.credible.com\/blog\/mortgages\/best-time-to-buy\/\"><b><i>Best Time to Buy a Home<\/i><\/b><\/a><\/p>\n<h3>Getting building permits: $400 to $2,250<\/h3>\n<p>A building permit is a document that says you\u2019ve received permission from your local government to begin the home building process. Once the construction is complete, it will go through inspections before the permit can be approved and closed out.<\/p>\n<h3>Laying the foundation: $16,600 to $72,000<\/h3>\n<p>Laying a foundation involves digging space for the foundation, preparing the land, pouring the concrete, and getting it to set right. You might also need to perform some additional landscaping to address any potential issues with the foundation.<\/p>\n<p>This all-important phase costs anywhere from $16,600 to $72,000, depending on the location, size of the home, and the type of foundation you choose.<\/p>\n<h3>Framing the house: $16,600 to $95,000<\/h3>\n<p>After laying the foundation, your builder creates the frame, which is like the skeleton of the house. The type of frame you choose will greatly influence the price tag, which runs from $16,600 to $95,000.<\/p>\n<p>The framer will take care of:<\/p>\n<ul>\n<li>The home\u2019s overall frame<\/li>\n<li>Trusses and general metal work<\/li>\n<li>Sheathing and subfloor installation<\/li>\n<li>Windows and door installation<\/li>\n<\/ul>\n<h3>Interior finishes: $42,000 to $167,000<\/h3>\n<p>The interior finishes basically turn your structure into a home. These include things like insulation, walls, flooring, interior doors, fixtures, cabinets, and countertops. The builder will also paint walls and hook up major appliances.<\/p>\n<h3>Installing major systems: $17,000 to $72,000<\/h3>\n<p>Major systems consist of your plumbing and HVAC systems. Once installed, your builder will connect these systems to the local utilities. Expect this to cost $17,000 to $72,000 depending on the size of the home, type of systems you\u2019re installing, and the quality of the materials.<\/p>\n<p><a name=\"calculate-costs\"><\/a><\/p>\n<h2>How to calculate the cost of building a house<\/h2>\n<p>Homebuilders\u2019 price estimates are based on expert knowledge and experience, and they factor in every aspect of the structure, systems, and finishes of a home. But you can get a ballpark figure for the cost of building your own home by using their prices as a starting point. <\/p>\n<p>To calculate the cost of building a home, you\u2019ll want to take the following steps:<\/p>\n<ol>\n<li><b>Determine the size, style, and location. <\/b>Have a general idea of how big you want your home to be, the type of finishes you want, and where you\u2019d like to build it.<\/li>\n<li><b>Shop local builders\u2019 websites.<\/b> To get an idea of what builders are charging for homes similar to yours, check out their websites and request quotes. Be sure to match features like garages, the number of roof angles, how many floors there are, the type of foundation, and the construction materials.<\/li>\n<li><b>Do the math.<\/b> Average the sizes and prices of homes you like, and divide the average price by the average square footage. Use that price-per-square-foot figure as a guide when you\u2019re browsing building plans.<\/li>\n<li><b>Research finishes and features.<\/b> Look into the finishes and features that come with comparable homes, and make adjustments for your own preferences. Characteristics like builder-grade carpet versus hardwood flooring and vinyl siding versus fiber cement siding can mean a difference of tens of thousands of dollars in otherwise identical homes.<\/li>\n<li><b>Calculate the cost of acquiring land.<\/b> If you don\u2019t already have a building lot, you\u2019ll need to buy the land to build your home on. You can search listings on real estate portals like Redfin, or work with a local real estate agent.<\/li>\n<li><b>Factor in the cost of preparing the lot.<\/b> Unless it\u2019s already clear and has access to utilities, you\u2019ll have to make some phone calls to determine the costs involved in completing that work.<\/li>\n<li><b>Don\u2019t forget about permits and inspections. <\/b>Builders\u2019 prices often include required permits and inspections. If the comparable homes you researched didn\u2019t include those, contact your local zoning office to find out what\u2019s required and how much it costs. <\/li>\n<li><b>Add the cost of your blueprints. <\/b>You\u2019re going to need to hire a draftsperson to create a home blueprint or house plan. Costs vary widely according to the complexity of the design and whether you select off-the-shelf prints or opt for a custom home design.<\/li>\n<li><b>Leave room for overruns. <\/b>Leave room in your budget for unexpected expenses and cost overruns.<\/li>\n<\/ol>\n<p><a name=\"what-you-can-afford\"><\/a><\/p>\n<h2>What you can afford by budget<\/h2>\n<p>Building a new home is expensive, but you can control costs by building only as much home as you need, keeping the design simple, and resisting the temptation to go overboard on upgrades. Here\u2019s what you can expect for various budget levels.<\/p>\n<h3>Under $200,000<\/h3>\n<p>At $178 per square foot, you can build a house of up to 1,100 square feet. That\u2019s enough space for two bedrooms \u2014 three if they\u2019re on the small side \u2014 and two baths. Homes this size make good starter homes, downsizes, or investment properties.<\/p>\n<h3>$200,000 to $299,000<\/h3>\n<p>A budget in this range will get you 1,100 to 1,600 square feet, depending on the options you choose. At the high end, you can expect three bedrooms for sure, and perhaps four bedrooms or three bedrooms and a smaller home office. You might add a half bath and a porch, patio, or deck as well.<\/p>\n<h3>$300,000 to $399,000<\/h3>\n<p>This currently is the most common price range, and with it, you can expect roughly 1,700 to 2,200 square feet. You should be able to accommodate the most common home characteristics as well: at least three bedrooms and 2.5 baths, plus outdoor features. <\/p>\n<p>If you want a more elaborate design or more bedrooms and baths, you might have to compromise on finishes to keep it within your budget.<\/p>\n<h3>$400,000 to $499,000<\/h3>\n<p>A budget in the $400,000s should get you a nice home up to about 2,800 square feet, with four bedrooms, three baths, higher-end finishes, and larger or more elaborate outdoor features, such as a covered porch instead of a bare-bones open deck.<\/p>\n<h3>$500,000 to $750,000<\/h3>\n<p>This is a high-end budget that will get you a premium home design with four to five bedrooms and perhaps a home office to boot, and at least three baths. Sizewise, you can afford 2,800 to 4,200 square feet. <\/p>\n<p>Expect homes in this price range to come standard with more luxurious finishes, which means you might have to downgrade or simplify the design to stay in the lower range of the budget.<\/p>\n<h3>$750,000 and up<\/h3>\n<p>Only a small percentage of new-home buyers are currently spending this much on their homes. If you\u2019re one of the lucky few, your budget will get you a house with at least 4,200 square feet, which is plenty of space for five to six bedrooms and three to four baths, plus a home office. <\/p>\n<p>Again, the quality of finishes will be proportional to the value of the home, but think twice before you opt for a cheaper finish to save money, as this may reduce the home\u2019s resale value.<\/p>\n<p>Credible allows you compare loan options from multiple lenders \u2014 all in once place.<\/p>\n<div id=\"purchase-rate-table\">\n  Loading widget - purchase-rate-table\n<\/div>\n\n<p><a name=\"when-consider-building\"><\/a><\/p>\n<h2>When to consider building a house<\/h2>\n<p>While building a home can get pricey, the ability to customize the space makes the cost worthwhile to some homebuyers. Consider these pros and cons if you\u2019re thinking about building a home:<\/p>\n\n<table id=\"tablepress-725\" class=\"tablepress tablepress-id-725 table table-border-top table-rounded table-no-img-margin table-capitalized-column-titles tbody-has-connected-cells\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\"><strong>Pros of building a home<\/strong><\/td><td class=\"column-2\"><strong>Cons of building a home<\/strong><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">You can customize your own home.<\/td><td class=\"column-2\">It may be time-consuming to make a lot of decisions about the home\u2019s build throughout the project.<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">New homes usually come with less maintenance.<\/td><td class=\"column-2\">A new-construction home may be more expensive than buying a pre-owned home.<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">You can choose the location of where you\u2019d like to build the home.<\/td><td class=\"column-2\">Getting a mortgage for a construction project may be complicated.<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td colspan=\"2\" class=\"column-1\"><p><div class=\"basic-box\" style=\"border: 1px solid #E2E4E6;\"><div class=\"basic-box__inside\"><\/p>\n<h3 style=\"text-align: center;\"><span style=\"font-size: x-large;\"><strong>Get a prequalified mortgage quote<\/strong><\/span><\/h3>\n<h6 class=\"accent--isGrayLight\" style=\"text-align: center;\">One form. 3 minutes. No spam calls.<\/h6>\n<p style=\"text-align: center;\"><a class=\"btn btn-warning\" href=\"https:\/\/www.credible.com\/mortgage\/form\/property-stage?utm_source=wp-credible&amp;utm_medium=mp-table-cta&amp;utm_campaign=seo\" target=\"_blank\" rel=\"noopener\">Find My Rate<\/a><!-- TrustBox widget - Micro Combo --><\/p>\n<p><!-- End TrustBox widget --><\/p>\n<p><\/div><\/div><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n<p><a name=\"1\"><\/a><br \/>\n<sup>1<\/sup><a href=\"https:\/\/www.census.gov\/construction\/nrs\/pdf\/newressales.pdf\">U.S. Census Bureau and the U.S. Department of Housing and Urban Development<\/a><br \/>\n<a name=\"2\"><\/a><br \/>\n<sup>2<\/sup> <a href=\"https:\/\/www.census.gov\/construction\/nrc\/pdf\/quarterly_starts_completions.pdf\">Quarterly Starts and Completions by Purpose and Design, U.S. Census Bureau<\/a><br \/>\n<a name=\"3\"><\/a><br \/>\n<sup>3<\/sup><a href=\"https:\/\/www.nar.realtor\/newsroom\/annual-existing-home-sales-hit-highest-mark-since-2006\">Annual Existing-Home Sales Hit Highest Mark Since 2006, National Association of Realtors<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finding the perfect house can be difficult, especially when inventory is tight. If the homes in your intended area are too big, too small, or not quite right, you might consider building a house from&hellip; <a class=\"more \" href=\"https:\/\/www.credible.com\/blog\/mortgages\/how-much-does-it-cost-to-build-a-house\/\">Continue reading<\/a><\/p>\n","protected":false},"author":105,"featured_media":51533,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"inline_featured_image":false,"footnotes":""},"categories":[1463],"tags":[1549,1524,1528],"class_list":["post-51531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgages","tag-homebuying-options","tag-mortgage-purchase","tag-mortgage-rates-sidebar-no-table","how-much-does-it-cost-to-build-a-house-in-2022","post_tag-homebuying-options","post_tag-mortgage-purchase","post_tag-mortgage-rates-sidebar-no-table"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Much Does It Cost to Build a House in 2022? | Credible<\/title>\n<meta name=\"description\" content=\"Homebuyers spend an average of $283,965 building a single-family home. 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