Do you want to start the construction for your dream house but are stuck on the Cost to Build a House? Are you tired of hearing about high prices from different suppliers? Building a house is not an easy task. Every builder wants a house according to his needs. But there is the fear of being exploited by the market. Gathering information, and surfing the Internet for prices can be a tiresome task. Well, rest assured because this article will explain in detail the expenses of building a house.


What is the Expected Average Cost to Build a House?

The national average cost required to make a house is $329000. The average range falls between $110,000- $480,000. The Home Construction Cost Per Square Foot falls between $100 to $150. This is a rough estimate of the construction project. Prices may differ from place to place. For example, the average cost for a house in Delaware is $408,830. On the other hand, the average cost to construct a house in Arkansas is $146,875. Moreover, they are impacted by other factors. Some of these are related to environmental conditions. Whereas, some are personal choices. The specifications of the construction project help to determine the exact expenditure. 

Factors Affecting the Cost of Building a House 

The following are the major factors that are going to impact the total cost of a house: 

  • Local market rates
  • Location of the house
  • Cost and quality of materials
  • Size of the home
  • Number of additions or upgrades
  • Utilities
  • Labor cost
  • Infrastructure 
  • Personal preference for aesthetics 

For the calculation of home replacement cost, a Home Replacement Cost Estimator can be hired. They can devise a budget plan according to your specific requirements.

Soft Cost To Build a House

In construction projects, soft costs refer to all the intangible costs. In simple words, these expenses are not physical. They usually occur at the initial stages of a construction project. Soft Costs may differ depending on the scale and complexity of a project. The following are the major soft costs in every construction project:

Purchasing and Preparing the Land

There are a lot of factors to consider while planning to build a house. But two main costs will be incurred no matter what :

Land Purchase Cost

The purchase of the land is included in the cost of building a house. There are numerous factors to look for while purchasing land. Its prices will vary in different areas of the U.S. This cost will generally range from $20,000 – $200,000. In some states such as Maryland, the price per acre starts from $75,000. On the other hand, in Nevada, the cost of land per acre is $5000. So location matters a lot.

Preparation Cost 

You shouldn’t neglect land preparation costs. The land should have an electrical grid and plumbing systems. Depending upon how far you live. Electrical grid installation costs range from $1000 – $30,000. Additionally, solar energy is also an option. Opting for Solar includes buying the solar plates plus the insulation fee. According to rough estimates, its cost is around $20,000.

Costs of Permits 

To start building a house, one requires a permit. Firstly, construction plans have to be prepared. It must cover every aspect of the project. After the plans have been prepared. A request is made from the associated municipality. This cost varies from area to area. That is to be determined by the municipality. The cost of a building permit lies between $1200 – and $2000.

Expenses on the Interior of the House

A client when spending the cost to build a house wants the best for his interior projects. A client wants the best structure, frames, and designs. This cost mainly depends upon the quality of the material and the location of a construction project. For instance, generally for a 2500 square feet residential project, the budget set must be from $15,000 – $20,000.

Hard Cost to Build a House

Hard Costs refer to the cost related to the physical structure of the building. The following are the major hard costs:

Materials Required

There are a majority of materials required for a construction project. It can be roughly estimated that you are going to spend about $50 per square foot in respect to materials. The total cost to build a house is largely influenced by the materials utilized. They make up the majority of the expenses. Following are the prices for materials in 2024

  • Flooring  $2 to $21 per square foot
  • Drywall  $13 to $20 per pane
  • Lumber $10 to 15$ per square foot
  • Concrete $5 to $12 per square foot
  • Siding $1 to $14 per square foot 
  • Interior paint $4k to 11k for house
  • Exterior paint  $2k to 8k for house 

A Home Project Cost Estimator can present you with an accurate budget for these expenses so you don’t go over budget.

Electrical Costs

The electrical cost to build a home ranges from $3 to $6 per square foot. The cost of an electrician is not included in this range. The exact electrical cost is going to depend upon the type of material you choose as well as the size of your home. The total will fall around $7500 to $12,500. 

Plumbing Costs

Homeowners usually spend an average of $4000 on plumbing costs. But this goes as high as $12,000. This variation in cost is due to the requirements of the buildings. The cost per square foot is generally around $4. It is important to install durable plumbing systems throughout the house as they are responsible for carrying and supplying water around the house.

HVAC Installation Costs

Heating, ventilation, and air conditioning systems are important to maintain a cool indoor environment. HVAC systems are going to cost around $1200 to $12,000. The cost of HVAC installers is not included.

Charges of Contractors

Contractors generally charge about 10%-20% of the total price of a construction project. It depends upon the type of construction building as well as the workforce required. A contractor is responsible for hiring other professionals that are specified in construction-related work. Don’t forget to account for their charges as well. Some of the hourly rates of workers is given below

  • Plumbers $26
  • Roofers $22
  • Painters $20
  • Electricians $28
  • Carpenters $25
  • Brick masons $23
  • Engineers $40



To sum it up, the cost of building a house varies yearly. This is mainly because of the changing economy. The prices in the market change over time. If you are starting construction for your home, it is vital that you stay up to date on the recent prices. Keeping yourself updated will help you manage your budget and also save you from potential scams. Especially if this is your first project and you are just starting out. This guide will surely help you!