How Much Does It Cost to Build a House in 2025?
Check out how to budget for building a new house
The average cost is $323,026, with most homeowners typically paying between $138,937 and $531,294.
Material and labor costs usually split home building budgets evenly.
The quality of materials significantly impacts total building costs, with premium and luxury elements reflecting high construction prices.
General contractors charge 10% to 20% of construction costs and may hire various workers and subcontractors.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
Building your own house in the U.S. costs an average of $323,026, with most people spending between $138,937 and $531,294. You can expect to pay $60 to $110 per square foot. Your costs will vary based on location, size, quality of materials, and the scope of your project. Proper budgeting and hiring the right professionals are crucial to managing these expenses effectively.
House-Building Cost Factors
Acquiring various materials and hiring local home-building contractors represent the main costs for building your home.Other factors, such as site preparation, permits, and additional home areas, can also influence the total cost.
Materials
Expect to spend about 60% of your budget on home-building materials for framing, foundation, flooring, and numerous other elements. Structural and finishing materials come in a range of quality, availability, and affordability, and choosing premium over common options generally translates to higher costs.
Home Size
The size of your home is the main determinant of total construction costs. Larger homes generally require more materials and labor to build and carry higher costs. Home building costs typically range from $60 to $110 per square foot. If you do most of the work yourself, you might pay as little as $40 per square foot, whereas professional labor and premium materials can push costs to $200 per square foot or more.
The number of bedrooms in your home directly influences total square footage and cost. For example, see these average costs based on the number of bedrooms:
Three-bedroom homes (975–2,400 square feet): $146,400
Four-bedroom homes (1,900–2,800 square feet): $285,000
Five-bedroom homes (2,500–3,500+ square feet): $375,000
Your home’s floor plan may also affect costs. For example, multi-story or otherwise complex layouts may pose greater challenges to your construction team. Single-story houses can be more affordable, but a sprawling home may incur greater roofing and foundation costs.
| House Size in Square Feet | Average Cost Range |
|---|---|
| 800 | $80,000–$160,000 |
| 900 | $90,000–$180,000 |
| 1,000 | $100,000–$200,000 |
| 1,200 | $120,000–$240,000 |
| 1,500 | $150,000–$300,000 |
| 1,600 | $160,000–$320,000 |
| 1,800 | $180,000–$360,000 |
| 2,000 | $200,000–$400,000 |
| 2,500 | $250,000–$500,000 |
| 2,700 | $270,000–$540,000 |
| 3,000 | $300,000–$600,000 |
| 4,000 | $400,000–$800,000 |
| 5,000 | $500,000–$1,000,000 |
Labor
Labor accounts for 30% to 50% of your home construction costs. Your labor costs will vary depending on the size of your build, the complexity of its design, and local general contractor and subcontractor rates.
For example, building with template blueprints and prefabricated finishes is often more affordable than creating a highly customized home, which may require hiring architects, designers, and other specialized professionals.
| Service | Average Cost Range |
|---|---|
| General contractor | 10%–20% of the total project cost |
| Construction manager | 5%–15% of the total project cost |
Location
Construction prices vary significantly across different states and between urban and rural areas. For example, building your home in Arkansas can cost as little as $135,000, while in New York, new home construction can cost around $600,000.
New York City, San Francisco, and similar metropolitan areas are population-dense and have high costs of living, translating to higher contractor and material rates. Rural areas may have lower rates but limited availability for materials and contractors, sometimes resulting in shipping and transportation surcharges.
Plumbing, HVAC, and Electrical
Plumbing, electrical, and HVAC represent major system costs because each requires labor-intensive and specialized work and complex equipment. Homes generally require rough-in plumbing, electrical wiring, ductwork, and HVAC unit installation.
System installation costs range from $20,000 to $75,000, depending on size and type. For instance, standard HVAC installation costs between $5,000 and $12,500, but opting for a geothermal heat pump over standard forced air can increase costs to $24,450 or more.
Interior Finishes
Interior home finishes refer to the materials and treatments inside your home that serve both decorative and functional purposes. Depending on the quality of your materials, interior finishing averages $50,000 to $175,000. Complex or premium finishing materials, such as countertops or flooring, represent the high end of the cost range. The low end also includes various materials offering functionality, durability, and visual appeal.
Exterior Finishes
Exterior finishes, which range from $40,000 to $60,000 in total, refer to materials and installations outside your home, such as siding, shingles, masonry veneer, and more. These materials are generally meant to protect your home and provide visual appeal.
Like interior finishes, the cost of exterior finishes depends on the quality of materials and installation complexity. For example, stucco may require specialized labor, while stone details carry high material costs.
Site Prep
Your land plot may require site prep if it hasn’t already been developed, which ranges from $2,000 to $35,000. This includes clearing and grading the land and sometimes soil testing, inspections, and soil amendments. If not already in place, your plot may incur additional costs for plumbing, sewer, and electrical connections.
| Site Prep Task | Average Cost Range |
|---|---|
| Clear a lot | $200–$4,440 |
| Land excavation | $90–$5,050 |
| Soil testing | $650–$2,150 |
| Land leveling | $300–$3,960 |
Building Plans
You can choose from a variety of stock or pre-designed home plans with popular features, costing between $500 and $5,000. If you prefer custom plans, you'll need an architect or similar professional, which can cost $2,000 to $20,000.
Permits
You'll need permits to build your new home, which cost between $1,200 and $2,000. Permit costs vary based on your area’s regulations and the complexity of your build.
Additional Home Areas
If your new home includes additional rooms or areas, plan to budget accordingly.
Outdoor Space
Adding outdoor living spaces, including landscaping and hardscaping tasks, costs an average of $7,800, ranging between $4,150 and $20,000. Extensive, complex, or luxury projects can exceed this cost range.
For example,an in-ground pool can cost anywhere from $33,000 for a basic model to $100,000 or more for a luxury custom design. Outdoor kitchens cost between $6,350 and $26,900, and decks cost $4,300 to $12,500.
Basement
Building a basement can cost between $30,000 and $70,000, depending on its size, complexity, and level of finish. Finishing a basement, which includes adding flooring, walls, and fixtures, can increase costs from $10,000 to $100,000. Luxury finishes and features, such as a home theater or additional living space, increase costs further.
Garage
Adding a detached garage costs $26,400, ranging from $19,200 to $33,600. These ranges vary based on the square footage, but adding a workshop or storage to the space can also drive costs higher.
DIY vs. Hiring a Pro
Building your own house may seem like a cost-saving endeavor, but it comes with significant challenges and risks. While DIY construction may reduce labor costs, it requires a high level of skill, extensive time investment, and knowledge of building codes and regulations. Mistakes can lead to costly repairs, diminished work quality, and safety hazards.
Hiring professional contractors ensures that experienced experts handle each aspect of construction, from design to completion. They can navigate legal requirements, obtain necessary permits, and adhere to safety standards, ultimately providing you with peace of mind and long-term value. While it involves higher upfront costs, professional construction often results in higher-quality workmanship, improved durability, and potentially higher resale value.
Budgeting for the Cost of Building a House
Building your home is likely one of the biggest investments you'll make. To streamline costs while maximizing your investment, consider these budgeting strategies:
Focus on essential features in areas where you spend the most time, such as the kitchen, living room, and bedrooms.
Opt for common, discounted, or budget-friendly materials when possible.
Get bids from multiple contractors to find the most competitive option.
Avoid excessive customization; instead, prioritize custom features where they make the biggest impact.
Choose prefabricated elements and templated building plans where it makes sense.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. We surveyed thousands of real customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
FAQs
A construction loan is one of the most common financing options available for building a home. You’ll typically need a high credit score and make a down payment when you apply for the loan. Other alternatives include federal construction loans for active and retired service members, hard money loans, and construction loans backed by the Federal Housing Administration.
Building your house typically takes about seven months from start to finish. According to U.S. Census Bureau data, this timeline is achievable when all tasks are managed efficiently. With effective planning, optimal labor allocation, and proactive resource management, you can complete the construction phases on schedule while minimizing delays and unforeseen setbacks.
To save on home-building costs, consider choosing a smaller design or alternative construction methods. You can lower expenses dramatically by using prefabricated house kits, repurposing shipping containers, or adopting tiny house designs that require as little as $8,000 in material costs. These strategies reduce labor expenses and material waste while delivering a high-quality, efficient home.
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