How Much Does It Cost to Build a Brand-New House?

If you’re looking for a house but haven’t found the perfect one, you might be wondering what it would take to build a brand-new home of your own. Building a house might be less expensive than you think, and there are several financing options available to help. However, construction costs soared at the height of the pandemic due to supply chain disruptions and labor shortages, so prices — and time frames — are up.

How Much Does It House Construction Cost?

The average cost to build a single-family home in 2022 was $284,764, according to data from HomeAdvisor. That price, however, can range from as low as $110,765 to as high as $459,152. Prices vary widely depending on the region of the country where you’re building and the specific details of your home plans.

Home building costs, broken down

You’ll need to take into account a number of key points to estimate the true cost of building a new home. Here’s a breakdown of some of the costs that might factor into your construction budget. All prices are based on construction of a 2,000-square-foot home.

Pre-construction

You’ll need to secure the appropriate permits and pay fees to your city or municipality before the work on your home can begin. You’ll also need to hire architects and engineers to make plans for your home. These costs all vary by location but you can expect to spend about $4,220 on permits and about $1,000 to $2,000 on plans and specifications.

Foundation

The foundation of your new home is a major part of the process and can be a significant part of the overall cost. Excavation costs around $3,000, and foundation work runs about $9,260.

Exterior

You’ll have to complete the exterior of your home with a roof, siding, windows and doors once the frame of your house is in place. The cost for each of these items may vary based on the materials you choose. However, roofing averages about $13,760, while windows and sliding doors may be about $3,000, and expect to tack on another $4,760 for standard doors throughout the home. A stucco exterior averages about $16,000; siding costs can vary widely depending on square footage and material type.

Home systems

The infrastructure that heats your house and provides water and electricity is essential. Expect to spend more than $7,000 on heating and ductwork, in excess of $18,000 on plumbing and sewer requirements and about $8,000 on electrical wiring.

Interior

From insulation to walls, cabinets and flooring, finishing the interior of your home is one of the most expensive parts of the project. The cost of gypsum wallboard for a new-build home is nearly $12,000. Cabinets, which range in style from basic to luxurious, vary widely in price but you could spend $9,000 or more. Similarly, flooring costs range significantly depending on materials but typically run at least $5,000.

Outdoor

Most suburban homes have a driveway and walkway to the front door, and they may also include a deck or patio and some form of landscaping. These features can add up quickly. The cost of just a driveway and sidewalk is about $6,000. Installation of front- and backyard landscaping averages an additional $3,451, according to HomeAdvisor.

Labor

Labor is one of the most important costs involved in home construction — and also one of the most difficult to measure. The final price tag will vary significantly based on each new home’s plans and the amount of work involved. Labor often makes up about 30 to 50 percent of a home’s total construction cost, per HomeAdvisor.

Expect to pay for a long list of subcontractors and specialized experts to help complete your home project, including roofers, electricians, plumbers, flooring specialists and more. The cost of labor increased during the pandemic, thanks to greater numbers of homeowners taking on remodeling projects, and may still be inflated. “You may also face long wait times for high-quality tradespeople due to high demand,” says Mischa Fisher, chief economist for Angi.

Land

Of course, before embarking on your new home’s construction, you will need a place to put it. The land costs associated with new home construction typically include the purchase price for the property and also land preparation, such as tree removal or leveling.

Like many other factors associated with the construction of a new home, the cost of land can range widely. According to HomeAdvisor, these costs vary significantly depending on the size of the lot, its location and whether or not it is already connected to utility services. Based on these factors, you may spend anywhere from $3,000 to $150,000 on acquiring land.

Is building a home cheaper than buying?

It’s the opposite, in fact: In general, building a new home tends to cost more than buying an existing one. According to a 2022 report from HomeAdvisor, builders can expect to spend about 5 percent to 10 percent more per square foot than buyers.

Buying a pre-existing house and simply renovating it to meet your needs can provide more value per square foot — just how much you will save, however, depends on its condition and many other factors. “While it depends on the location and size of the home, buying an existing home and remodeling is probably cheaper than building in many areas,” says Fischer.

“If you’re willing to live in a home that doesn’t necessarily have this year’s remodeling upgrades, there’s a lot of money to save by buying a house rather than building one,” says Thomas Jepsen, founder of Passion Plans, a website that helps consumers build their dream homes.

It’s important to think about your priorities, too, says David Logan, senior economist and director of tax and trade policy analysis at the National Association of Home Builders. New homes tend to be bigger and more customized, but are also often farther from city centers and public transportation because land in exurbia is cheaper and easier to acquire.