How Much Does it Cost to Build a House?

house cost estimation

Are you scheduling to build a new home in the USA? If yes, you must be anxious about how much it is to build a house. In 2023, one must have a budget of $300,000 to make a house in the USA. The given construction cost omits the ground expenditure. Moreover, building a house is not the actual cost because the prices can alter depending on the project’s spot, structures, designs, altitudes, and complexity. Likewise, the availability of materials and labor can significantly affect the average cost to build a house. A lavish home’s average building construction cost can fall between $300,000 to many millions.

So, when planning a home building, it is crucial to evaluate the cost to build a house in the USA. It will enable you to monitor and handle all expenditures faultlessly. Let’s explore more things in detail!

Average New Residential Construction Cost Per Sq. Ft.

A house of 2000 sq ft is rough for a family of 3-4 members. And its construction cost will be around $150/sq ft. The total house construction cost can vary depending on many factors. The table shows the average, low, and highest house construction in the USA.

Type of Cost  Rate Per Sq. Ft
Average Cost $150
Lowest Cost $100
Highest Cost $500

According to a survey executed by HomeAdvisor, the average house construction is recorded as follows:

Description Cost Range Average Cost/ Sq ft
New Home Construction (Total) $117,971 – $450,345 $284,158
New Construction Cost per Square Foot $100 – $200
Additional Customizations $500+ per sq ft.
Consult Builder for Exact Cost per sq ft.

Cost to Build a House by State

The location of your property can significantly change the figure in answer to the question of how much it is to build a house. You can easily observe varying labor, material, and transportation rates at different places. For the most affordable option, consult multiple builders and choose the one dedicated to constructing your house at affordable rates.

Here is an extensive list of states in the USA where you can notice highly varying prices to build a house of 2,000-square-foot size.

State Cost State Cost State Cost
Alaska $421,080 Indiana $219,300 Nebraska $210,900
Arizona $295,580 Idaho $315,520 New Jersey $376,900
Arkansas $251,800 Iowa $214,040 New York $360,180
Alabama $267,620 Kentucky $280,580 Ohio $222,480
California $405,440 Kansas $207,120 Oklahoma $260,500
Colorado $299,300 Louisiana $269,920 Tennessee $261,940
Connecticut $345,440 Maine $282,140 Texas $264,100
Delaware $327,060 Maryland $294,160 Utah $288,560
Florida $263,640 Michigan $216,780 Virginia $310,100
Illinois $265,440 Missouri $226,760 Washington $343,100

House Construction Cost Estimation

When you think about new house construction in the USA, getting assistance from budget estimators is beneficial. They can provide you with detailed estimates while considering all the construction expenses. Estimators calculate the construction budget by detecting the cost of each activity. In the below table, you can see the list of house construction expenses with their updated rates.

Expense  Cost Expense  Cost 
Separate residential setup (for 7 months) $8,600 – 11,900 Plumbing $11,000
Plumbing and sanitation assessments $4,500 Electrical $10,100
Home layouts $500 – $3,500 Insulation $5,250
Project administration costs $3,000 – $52,000 Drywall $15,550
Building permits $3,000 Painting $7,000
Development fees $3,000 Edging &Inside gates $11,000
Excavation $2,300 Flooring $10,250
Foundation $9,000 Closets and kitchen tops $11,800
Framing $33,000 Plumbing fixtures $3,200
Exterior Siding $11,500 Lighting fixtures $3,100
Roofing $9,200 Appliances $3,550
Outdoor windows and entrances $7,750 Driveway $4,400
HVAC $11,200 Contingencies $45,000
Landscaping $5,860 Cleanup $2,600

Factors that Can Impact the Cost to Build a House in the USA

The building construction cost can highly differentiate due to many factors. We all know that every construction project differs from another one. But, one must consider the following factors during house construction in the USA because they can significantly affect the total building expanse.

  • Permit Expense

When you plan to start construction on your free land, applying for a construction permit in the USA is mandatory. Though it is a side expense, you must consider it for an accurate estimation. For small constructions, such as plumbing, the cost will fall between $50 to $300. However, if your plan is extensive or you will construct a complete house or building, your permit expense can land around $2,000. Additionally, the construction permit cost varies with the location change.

  • Ground & Site Preparation Expenses

When you move from one place to another, you will experience a significant change in house construction rates. It is also the reason behind varying ground and site preparation rates. Some sites need labor for slopes and some for water setup. Therefore, you must have a strong background or access to an estimator or builder who can guide you on what to do and how to cut overall site preparation costs.

  • Material Expense

Everyone wants to use high-quality and reliable construction materials for his project. One must remember that the type and quality of building materials can alter the overall construction cost. If your dream house is big with fancy additions, its cost will be more than a simple and smaller project. Therefore, discuss everything with your helpers and ask them how to fulfill your dreams cost-effectively.

  • Labor Expense

Like material costs, labor expenses can also impact the average cost to build a house. When you start construction from zero point, you need the support of many professionals to do the activity efficiently. Besides the assistance of a contractor and estimator, you might need help from a sub-contractor to meet your specific needs. For instance, if you want to install HVAC systems or electrical wiring, you must involve a subcontractor in this situation. And when you add one more expert to your construction project, your overall budget will increase.

Pre-Construction Costs

Many people ignore pre-construction expenses during estimation. However, they can cover 10-25% of your total cost to build a house. Here, we discuss which expenses you must factor in during the pre-construction phases.

Land Expenses

The first expense you will encounter when you start your house construction is buying land in a suitable area. Its cost can vary depending on the site’s condition and location. On average, its cost will fall around $300,000.


Consider documentation by first start dealing with floor plans. Whether you go with a simple layout or a custom design will be your choice. You must hire a professional architect for detailed plans, costing between $2,000 to $8,000. Secondly, talk to your builder with a detailed plan in the form of a bid. It must contain floor plans, exterior images, and other specific details. Next, your builder will shift his attention to the construction permit. And its cost will be between $1,200 to $2,000.

Living Cost

Just thinking about constructing a new house is exciting. However, dealing with a construction project is complicated. You must consider the living expense according to a specific area or region. Ensuring complete house construction and safe shifting to your new house is essential. On average, you can construct a house from scratch within 7 to 12 months. However, the project can take longer due to high complexity factors.

Water & Sewer Check

Once you have bought land for new house construction, check if you need to invest in water and sewerage systems. It is essential for the smooth supply of water and proper waste management. The assessment becomes more essential when your location is water-front. Above all, the average water and sewerage assessment cost is around $4,500.

Pre-Construction Costs

After the pre-construction phase, you enter the residential construction period. In this stage, experts deal with construction material and labor costs. Labor cost is considered the third significant expense during house construction. However, construction materials are divided into two categories for detailed analysis and estimation: House Exterior Material Costs and Home Interior Material Costs. Scan the table below to understand both building materials’ components with updated rates.

Home Exterior Material Cost  Home Interior Material Cost
Excavation $1,400 to $3,200 HVAC $7,000 to $12,500
Foundation $4,500 to $13,500  Plumbing (Copper) $9,000
Framing $20,000 to $33,000 Electrical $8,000
Roofing $5,500 to $11,500 Insulation $4,000
Siding $12/ Sq Ft Drywall $25,000
Driveway $1,500 to $4,500 Doors and Windows $6,000 to $8,500
Landscaping $2,000 Cabinets and Countertops $9,000
Trim $1,500
Flooring $1,500 to $4,500
Paint $5/ Sq Ft
Fixtures $5,000
Appliances $17,750
Furniture $20,000 to $80,000


Tips to Calculate House Construction Cost

    • House construction budget calculation is vital to give an authentic look to a budget and manage building processing accordingly. It is also essential for the successful completion of any construction project. You can follow the following tips to calculate house construction costs.
  •  Make a detailed plan for accurate estimation and well-managed construction.
  • Compare materials rates and choose the highest-quality and most affordable price.
  • Consider multiple laborers and work with those having years of experience and unmatchable expertise.
  • Pay attention to permits and other fees because these expenses can significantly increase the building cost.
  • Give a proper position to site preparation expenses in your construction calculation sheet.
  • Invest smartly in utilities and infrastructure and choose the things that are reliable and long-lasting.
  • Add around 10-15% budget to manage contingencies and sudden expenses during construction.
  • Utilize free online tools, software, and calculators to determine house construction costs.
  • Hire experienced estimators for construction estimating services besides starting direct construction.

Can I Calculate Construction Estimate Myself?

Accuracy is essential to calculate construction costs. With preciseness and accuracy, things can stay calm, and the project can stay on the right track. Therefore, experts recommend getting assistance from estimators. Professionals can analyze construction projects while considering all essential factors to provide reliable estimates. They own modern tools and software for accurately hitting house construction estimates and managing activities effectively. If you are not professional, you must consider an estimator for calculating the budget of your construction project.

Bottom Line

Determining the cost to build a house in the USA is beneficial since many factors can alter the overall project cost. In 2023, the average construction cost for a new house in the USA is $300,000. But, it can also change depending on the targeted zone, project configuration, dimensions, and intricacy. Other factors impacting the house construction cost include material costs, and labor expenses. To calculate the cost of building a house in the USA, you must consider the expenses for permits, utilities, bidding, and interior and exterior house construction activities for accurate estimates. This way, you can satisfy your preferences with a stress-free home-building journey. And in the end, you will obtain an excellent home to accomplish your family goals.


According to research conducted by Hartman, buying a house is cheaper than constructing a new one. He says that new construction can cost twice that of ready-made ones. However, the fact can be reversed if you want a simple and small residential house.

As a homeowner, you can get accurate estimates from construction estimators. Moreover, you can efficiently save money and time while fulfilling all your dreams. However, if you are a contractor, you can win more projects and increase your revenue. You can impress your clients by submitting quality bids.

Seasonal fluctuations can significantly impact house construction costs in the USA. So, whenever you consider building a new home, check the weather conditions and decide accordingly. In the USA, summer and spring are better than autumn and winter for house construction because the weather remains favorable during both seasons.