If you dream of building a new home, welcome! We are glad you found this page. There’s some great information here on how much does it costs to build a house. So keep on reading. Because you will learn the best way to get the most accurate idea of the current home building costs in your area.
We believe constructing a house should be achievable by anyone who has the desire and means to do so. However… There is a burning question to address before one decides to construct a new home: How much does it cost to build a house? We answer this question for you.
Construction Cost Factors
When constructing a house, you have to consider the many factors related to the costs of building it. (And there are a lot of them!).
You see, thoughtful planning is an essential step in the budgeting process. Further, it is the best path to determining accurate numbers for the cost of building your new home. So let’s get to it and look at the primary factors that affect the cost of building a house.
What’s the #1 Cost Variable?
Yes, it’s true. The number one costs variable in new home building is you and your choices. You see, custom-built homes and their associated building costs are highly influenced by the owner and their upgraded designs. feature choices, and product selections.
We’ll say it again… Your choices and selections are the top cost variable for your new home. Let that sink in for a moment.
Now, consider this: Ever wonder why development homes tend to be so well-priced? (Yeah, you know the ones where every 3rd house is the exact same design.)
It’s because the builder has so much control over the construction choices and their associated costs. This also means they can make the decision to constrain them. (Not to mention the discounts they garner from buying construction products in bulk.)
Of course, there are also some very predictable construction cost factors for all newly built homes. Let’s look at those now.
An often-overlooked but big factor that affects how much it costs to build a home is the plot of land. The price of the land must be added to the total cost of building your new home.
In luxurious and high-end areas, expect to spend a lot of money. The same is often true for land near the heart of a city (although this is not always the case). If you choose land in the outskirts of the city or a rural region, the plot of land price might be substantially less.
In general, land prices decrease during a recession. And, they increase when the economy is good. If possible, buy your land when costs are low. (We have worked with customers who have owned their land for 20+ years!)
Labor & Material Costs
Another important factor that affects the cost of building a new home is the price of labor and materials. Manpower and construction materials cost vary greatly from time to time and place to place.
At present, there is a projected labor shortage in the construction trades. This may lead to even higher new home building costs in the years to come. The cost of construction materials — construction costs inflation — has also spiked in the past few years and shows little signs of relenting.
Further, the following variables affect the labor and material costs of home building costs.
- Size of your home (total square footage).
- What professional builders are available for hire (we highly recommend only hiring reputable ones).
- The time of year you want to build (Yes, high building season vs slow season is a factor. Especially in regions of the country where the weather fluctuates. If you can, aim to start building out of season)
Give Me the Numbers
According to real estate experts, the cost of home building ranges between $150 to $200 per square foot. That means a 2500 square foot house would cost between $375,000 and $500,000.
Keep in mind, this is ball-park average pricing. None of this takes into consideration the custom features you want in your new home.
Now, let’s take a closer look at the numbers for building a custom home.
Cost to Build Custom
The cost of building a house depends on the type of home you want to construct. Custom homes are becoming more in demand now because they are built to suit one’s needs, wants, and style. This type of home cost starts from $170 to $250 per square feet.
IMPORTANT NOTE: This price range is for what we call “slight custom” and not high or luxury custom which costs a lot more to build.
So… if you want to build custom.
And you know you want to build a prairie style home with an area of 2800 sq feet. In this case, you will have to spend from $476,00 to $700,000. That’s quite a bit higher than the average real estate numbers we quoted earlier, isn’t it?
Again, keep in mind that this is a broad cost range as variables such as home design, product selections, and so forth can not be accounted for when discussing general home building cost factors.
The shape of the house also determines the cost of building your home. It is believed that rectangular, 2-story homes are the most economical to construct. So, if you are on a tight budget, you may want to choose this type of new home.
Professionally Build vs DIY
If you hire a professional general contractor to do the work for you, it will cost you more. But, the final result of a home built by a qualified home builder is well worth the money, in our opinion.
If you want to verify this for yourself, take these simple steps:
- Contact your local real estate agent
- Ask about the difference in the value of a home built by a professional
- Versus one built by a do-it-yourself enthusiast
There is no doubt a professionally built home will sell for more. Yet, it will also cost more to build it.
Closing Thoughts on Home Building Costs
For more accurate pricing information on land, manpower, and construction material costs, it is helpful to consult with a dependable contractor. S/he will know the market fluctuations related to homebuilding costs and can share those with you.
Many variables affect how much it will cost to build a new home. You can learn even more by reading our article called Homebuilding Costs. In it, you’ll discover 5 great tips.
In our opinion, however, the best way to get exact budget numbers on the cost to build a home is to hire a general contractor you can trust and communicate with effectively.
Until next time… happy home building!
You want to know exactly what you will get for your money, and Craig is happy to do so by offering you specific, accurate pricing that fulfills your vision at a price that works for you. He values honesty, integrity, trust, and customer satisfaction and proudly passes these core values on to every one of his clients.
Craig Schoenberg — owner of Schoenberg Construction, Inc of Saint Cloud MN — is one of the top General Contractors in Central Minnesota. He always gives honest, fair bids with no lowball, fake pricing, and there’s no sales pressure, ever! He always uses quality materials and never engages in sloppy workmanship. Plus, his company is known as one of the very best construction and remodeling companies in town.
Give him a call today at 320-252-0911 for your no-obligation consultation.
Why Work With Schoenberg Construction to Build Your House
What We Value
What We Do
- Specific, Accurate Pricing
- Highly Skilled Carpenters
- Reliable, Skilled, and Valued Subcontractors
- Top, Quality Materials
- Unbeatable Customer Service
What You Get
- 75+ Years of Combined Custom Construction Experience
- The Project of Your Dreams for the Price You Were Promised