How much does it cost to build a house?

Finding the perfect home can be frustrating. If you’ve spent hours browsing homes online and in person but haven’t found the one for you, you may not be considering a potential solution – having your house built for you from the ground up.

If you build a house, you get exactly what you want. Primary suite with a walk-in closet? Check. Fireplace? Check. Gourmet kitchen? Yes, please. But having your house built does involve a lot of time, work, and decisions on your part.

It can also be expensive. But how much will it run you to build a house? Let’s break down the costs of all aspects of building a house from scratch, including the land purchase, construction materials, labor, and more.

How much does it cost to build a house by size?

The average cost to build a house in the U.S. is $323,026, according to data compiled by Angi. This figure is less than the average home sales price, which was $501,700 in July 2024, according to data from the Federal Reserve Bank of St. Louis.

So, is it cheaper to build a house rather than buy one? Not necessarily. The total cost of building a custom home can vary quite a bit depending on the choices you make, the building materials you use, labor costs and the region of the country you’re in. Though $323,026 is one reported average, the typical cost to build a house falls within a wide range – anywhere from $138,523 – $525,406.

You’ll also need to buy and prepare the land where the home will sit.The prices above don’t factor in these extra costs.

Average cost to build

Source: Angi

A breakdown of the average cost to build a house

If you’re wondering how expensive it is to build a house, it can help to see a breakdown of the cost at each stage of the home building process. These costs can fluctuate by factors that you can’t always control, such as the cost of land, materials, and labor. They can also vary according to choices that you make, such as design, finishes, appliances, and custom construction. Breaking down the costs of each of these inputs can give you a better idea of what it costs to build a house.

Buying and prepping land

Before you can build a house, you need to purchase a plot of land to build it on. The cost of purchasing an empty lot will vary widely depending on several factors, including the size of the lot and its location. A one-quarter acre lot in a fashionable suburb might cost more than $100,000, for example, while a 5-acre piece of land in a rural county might only cost $20,000.

You’ll also need to pay to have the land prepared for construction. This can include tree removal, surveying, and having the land leveled. Again, these costs will vary depending on location, but nationwide you can also expect to spend $1,600 – $6,200 on surveying and land preparation before breaking ground on construction.

Drawing up plans and getting permits

Once you have your land, your general contractor and subcontractors will start preparing to build the house. This stage includes purchasing all the necessary permits and an architect drawing up floor plans for the home.

On average, house plans can cost anywhere from $500 – $20,000. The less expensive plans are typically stock plans that you can purchase online, while a custom plan drawn up by an architect is more costly.

Building permit requirements will differ between locations, but they cost $150 – $2,000 on average. Keep in mind you might need additional permits for things like sheds and patios.

Prepping and building the foundation

After all the prep work is complete, it’s finally time to break ground. A crew will come and begin digging out a space for your home’s foundation. Then, they’ll pour the concrete according to which type of foundation you choose: slab, crawl space, or basement.

The foundation you choose will depend on your budget and preferences. Each type of foundation has pros and cons, so be sure to do your research. A concrete slab foundation is customarily the most frugal option. A crawl space is more expensive, with a basement foundation being priciest of the three. A basement not only provides space and accessibility for much of the home’s HVAC, electrical, and plumbing mechanicals, it also provides extra storage or even living space.

Prepping and building your foundation will cost around $9,000 on average, though this amount can be significantly more or less depending on the type of foundation you decide to build and the size of the home. Any finishes to a basement foundation beyond its cement floor and walls would add significantly to the final cost.

Framing the home

Next up is framing. Think of this step as building the skeleton of your home. Floors will be framed and then covered with plywood. Walls will be framed, raised, and then sheathed with plywood or oriented strand board. Then, the trusses that will frame the roof are built and placed on top of the wall frames.

This process will cost $20,000 – $50,000 (depending on size and floor plan), averaging around $35,000.

Installing external elements

Once the frame is built, all the necessary external elements of the walls, roof, and openings will be installed. This means that exterior finishes such as the siding will be put up on the walls. Windows and doors will then be added, after which the roof will be sheathed – covered in roofing felt and nailed-on shingles.

Materials for exterior finishes vary widely. For instance, walls can be covered with vinyl siding, brick, or stucco. The cost of windows depends on their size and quality of construction. Because of this, exterior costs can fall somewhere in the $25,000 – $60,000 range.

Installing plumbing and electrical

Once the exterior elements are built, the house is essentially enclosed, making it weatherproof for the construction of important interior finishes and mechanicals.

Now it’s time to install all the major systems that distribute electricity, water, and heat/AC throughout the house. At this stage, plumbing and HVAC (heating, ventilation, and air conditioning) systems will be installed, and an electrician will wire your home and get you connected to the power grid.

No fixtures (toilets, faucets, sinks, lighting) will be added at this time; this step is about getting the foundations of these systems, such as pipes, wiring, and ductwork, in place before interior walls are built. Major system installation can cost anywhere from $30,000 – $75,000.

Adding interior finishes

Next are the interior finishes. This includes adding insulation, drywall, flooring, interior doors, wood trim, and all the basic components that will turn the newly constructed structure into a livable home. Cabinets, countertops, and kitchen and bathroom fixtures will be installed, walls will be painted and appliances will be hooked up.

Light fixtures, blinds, and any fireplaces are also common interior finishes.

Interior finishes can easily be one of the most expensive parts of the home building process, and the exact cost will depend on your personal preferences. Interior finishes could cost on average $50,000 – $175,000 depending on your choices. Once this step is finished, your home’s construction will be all but complete.

Outdoor space

The final step includes any outdoor living space or landscaping you want to add to the property. This might include landscaping or an outdoor living space such as a deck or patio. A basic outdoor living space typically ranges from $4,150 – $11,190 in cost.

Outdoor living features

Of course, special features have the potential to elevate the cost of your outdoor space by a significant amount. On average, a large outdoor deck will cost around $8,184. In-ground pools, on the other hand, can cost anywhere from $19,000 – $130,000, while outdoor kitchens cost on average $16,307.

Factors affecting the cost of building a house

It’s important to note that all of the costs discussed here are approximations based on national averages, and the costs are subject to change under various conditions. For the most accurate construction costs, you’ll need to do some research into the average prices in your area and get estimates from local contractors.

Builders will often express their estimates as price per square foot. Your overall cost can be affected by an array of factors, including:

• Current real estate trends
• The availability of materials and labor
• The type and quality of the materials you choose

The total price you pay will also be determined by the type of home you’re building. A very simple, small home can be relatively affordable to build. A more high-end, luxury home with multiple stories and architectural flourishes will naturally be more expensive. Finishes and features that can drive costs higher the most are flooring, cabinets and countertops, molding and woodwork, windows, and appliances.

When to consider building a house

Weighing whether you should buy an existing home or take the plunge and build your own? Many important factors are worth considering.

Length of the building process

Compared to building a house, buying an existing one off the market is typically a much simpler and faster process. New homes can take several months to build, while the home buying process can be completed in as little as 1 – 2 months.

Additionally, building a home usually comes with plenty of stress and lots of decision making. If you’re looking to spare yourself months of headaches, buying a home might be the easier option. Purchasing an already-built house can also be easier because you don’t have to deal with finding a construction loan.

Customization and quality

On the other hand, building your own home gives you the opportunity to get everything you want, while the home buying process often requires you to make a lot of compromises.

In fact, in many cases people who buy an existing home will immediately begin a large-scale renovation project to bring the house up to their standards. A full kitchen renovation, for instance, can be very costly and bring a huge disruption to your household for at least a few months or more.

Another advantage to a well-built new construction home is you won’t have to worry about dealing with costly repairs right away like you might with an older house that could need a roof replacement or a bathroom remodel.

A newly built home means you have all-new structural components and mechanical systems, which, unlike an existing home’s older components, are likely to last for years.

How to afford building your own home

If you don’t have the cash to fund your home build, you’ll need a home construction loan. This is a short-term loan used to fund the building of a new home.

You can use a construction loan to cover the total cost of building the home, including the land, labor, materials, and permits. Once approved, you’ll be able to start accessing the funds in conjunction with each phase of construction. You can get a home construction loan that converts to a traditional mortgage loan once the construction has been completed.

You can also get a construction-only loan that covers the costs of construction. Then, once the project is completed, you’ll need to apply for a traditional mortgage to pay off the construction loan.

Rocket Mortgage^® doesn’t offer construction loans at this time.

Should you build or buy a house?

The decision of whether to build or buy a home is entirely yours and one you should make based in part on your finances and the amount of money you’re willing to spend. While building a home is the best way to have a place that checks all the boxes, it can take several months to build a new house. A 2022 Census Bureau survey found that it takes about 6.1 months to build a production home and 8.9 months for a custom home. It can be a frustrating process that requires your personal time selecting finishes as well lots of back and forth with contractors.

Building also can also present unexpected expenses that derail your budget. Estimate the costs for building versus buying a house to figure out which option works best for your situation.

The bottom line: Calculate the cost of building a house

While the average cost to build a house is $323,026, most people will typically spend anywhere from $138,523 – $525,406 to build a home – and the average cost to build a home doesn’t include the land purchase and land preparation, which drives the overall price significantly higher.

Even though you can get a general idea of how much you might pay, keep in mind that numerous variables will impact the cost to build. Expect surprise expenses as the process goes along. Seek recommendations from people who have recently worked with a builder who communicates well, delivers quality work with few extra expenses, and keeps to schedule.

There’s also more to consider than cost. You’ll want to weigh the extra time and stress that comes with building a new home against the convenience of buying something preexisting. Although the process of securing financing for a preexisting home might feel intimidating at first, it’s much simpler than building a house from the foundation up.

If you decide to buy a home rather than build, you can start your mortgage application online today.