How Much Does It Cost to Build a Home?

How much does it cost to build a house? New home construction costs can add up, so it’s important to understand how much you need to save to build a home. According to the U.S. Census Bureau, the average cost of building a home is $397,800. However, the National Association of Home Builders (NAHB) puts it at $485,128.

Of course, these numbers can vary depending on the area you live in. Here are a few things worth considering.

Costs Associated with Building a Home

There are a few new home construction costs to consider before building a house.

Region of New Construction Home

The average cost of building a house is about $100 to $200 per square foot. But different areas can be far more expensive. In San Francisco, for example, the average cost per square foot is about $400. That’s about $600,000 for a 1,500 square foot home. But in other areas of the West, the average is much less and closer to $100.

New Home Development vs. Developed New Home Construction Costs

You can save up to 15 percent by working with new home builders. And there are other benefits of working with new home builders, too. That includes a ten-year structural warranty, pre-selected land sites, and a team of professional designers.

When compared to existing homes, new home builders are also more responsive to meeting consumer needs and demands. This can help satisfy the desire for new construction while also ensuring a better resale value. “A recent PulteGroup survey found that more than half of consumers (60%) say the most important attribute in how their home can support them is health and wellness,” said John Chadwick, Executive Vice President and Chief Operating Officer of PulteGroup. “As a direct result of the pandemic, consumers are seeking homes that will help them stay healthy, and Pulte Homes is leading the way.”

To address this, Pulte instituted a few new measures, including:

• Whole house water filtration system, which removes chemicals, sediment, and other contaminants to deliver cleaner, safer water to every faucet in the house

• Hospital-grade air filtration via premium MERV 16 HVAC filters, which capture and remove particles like dust, mold, bacteria, viruses, and other contaminants to distribute cleaner, hospital-grade air throughout the entire home

• Antimicrobial quartz countertops, which are non-porous and block bacteria, mold, and mildew from penetrating the surface

• Touchless faucets, which reduce the spread of germs on one of the most handled spots in the home

Building & Construction Costs

Finding the right contractor can make or break your new home construction project. The average cost of construction can represent as much as 30 to 60 percent of your new home costs. This depends on size, local labor costs, and the amount of customization you want in your home. Modular homes will cost far more than a custom-built home. A construction manager can cost as much as $50,000 for an entire project, while electricians might cost as much as $100 per hour and plumbers as much as $200 an hour.

Cost of Building Materials

The cost of building materials in 2021 is higher than average, meaning it will probably cost more than expected to build a new construction home right now—especially if you’re trying to build with quality materials. The price of lumber alone has jumped 375 percent. Other things that have gone up because of increased new home purchases? Drywall, concrete, paint, pipes, and wires, and even finishes like light fixtures or molding.

Building a Modular Home

Modular homes offer you the opportunity of enjoying all new home construction for less money. You also get the flexibility of choosing your own plot of land instead of having to pick a home site. But modular homes don’t always include the essentials, like stairwell steps or utility connections.

With new home builders, you may be stuck to a specific land site—but those sites might also include amenities like access to clubhouses and pools, in addition to a community of people who are also proud of their new homes and eager to build up the community.

How much does it cost to build a new home? Costs can vary depending on a lot of personal factors. But don’t let the costs or amount of planning discourage you. If you’re committed to building your own home, the wait will be worth it. Or if you don’t want to wait, you can likely find the type of home customizations you’re looking for with new construction home builders.

Contributed to Your Home blog

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Published 9.29.2021