The cost to build a house includes a large number of components and variables based on site factors, design and materials. There’s a lot of information to tackle, but that’s what we’re here to do. You won’t find a more comprehensive, itemized list of costs for building a home from the initial site work on a vacant lot to the finished product. This home construction cost guide covers:
- Land development costs and fees
- Foundation costs
- Framing costs
- Exterior finish costs such as siding and roofing
- Interior rough-ins such as plumbing and electrical
- Interior finish costs from drywall to flooring, cabinets and countertops
- Final grading and landscaping
- Driveway and deck
Update: new home construction costs have increased by 17.5% on a year-over-year basis in 2021 compared to previous year. Inflation in the cost of building materials and labor shortages have contributed to the increase in new home building costs.
In each section, you’ll find: a price range and an average cost for that phase, factors affecting cost, percentage of the whole cost that each phase represents, potential pitfalls, and a timeline for each phase of development and construction.
For each pricing section below, be sure to add ~20% to arrive at the current new home construction costs.
Average Home Size
According to the US Census Bureau, the median size of new homes sold in 2019 (latest available data from Census) was 2,438 square feet.
Now, according to the NAHB survey (which is largely in line with the US Census bureau) published in January 2020 (NAHB survey was conducted in the Fall of 2019), the average size (not median) of a new single-family home sold in the US was 2,594 square feet of floor space (house footprint) in 2019. That’s the size we will use for the average new home construction costs provided below.
Note the results of the upcoming NAHB home construction costs survey for 2020 is expected to be published in the Fall of 2021 (based on the previous publishing schedule). Thus, the cost data is provided in the latest report is backward-looking and doesn’t take into account two years of inflation. We recommend adding 5-7 percent to the costs provided in this report to arrive at the current average market prices to build a new single-family home in 2021.
Let’s jump into residential home construction costs from start to finish:
Residential Construction Site Work Cost
- Average cost: $18,323
- Cost range: $10,000 to $25,000
- Share of total construction cost: 6.2%
Overview: These are fixed costs regardless of home size. This phase involves the work needed to make vacant land habitable. Engineers inspect the property to determine whether it is buildable, where the home (and well and septic field, if applicable) should go and how the site should be graded for drainage.
The more complex the site and house design, the higher the fees will be. Water on the property typically raises the costs significantly, as an impact study must be done. The design, engineering and studies are often done for entire developments, so the absolute costs might be higher, but the cost could be less on a per-home basis.
Time frame: 4-10 weeks depending on the complexity of the inspections and engineering and the workload of the engineers.
Potential pitfalls: Finding wetlands on the property or a water table so high it prohibits building or the installation of a basement or standard drain field, delays in getting site reports completed or plans approved.
Here is a breakdown of the average costs of the steps involved in permitting, planning and preparation process based on the 2,594 sq. ft. house footprint:
- Permits, fees, and inspections: $5,086
- Impact study cost, if required: $3,865
- Architecture & site engineering fees: $4,335
- Water and Sewer fees Inspections: $4,319
- City water hookup: $1,500 or Well: $4,500
- City sewer hookup: $2,500 or Standard septic system: $3,700 or Engineered (mound) septic system: $13,500
- Other: $719
Excavation and Foundation Cost
- Average total cost: $34,850
- Cost range: $10.75 to $19.25/sq. ft.
- Average cost: $13.43/sq. ft. ($34,850 / 2594 square feet of finished floor space)
- Share of total construction cost: 11.8%
Overview: Installing the home’s foundation involves excavating the site by clearing brush and trees, removing the topsoil for the home and driveway, grading the site for drainage, and installing a concrete foundation, either a full basement, crawlspace, slab, or a combination, and backfilling the foundation.
Did you know? The type of foundation is the largest cost variable.
Time frame: 5-10 days including up to 7 days to allow the concrete to cure before building on it.
Potential pitfalls: Muddy conditions making it impossible to get heavy equipment or a concrete truck onto the work site until the soil is drier, spring frost laws (seasonal weight restrictions) preventing concrete trucks from using roads leading to the site until the frost is out of the ground, excavator behind on other work.
Itemized excavation and foundation average costs:
- Dirt work – removing topsoil, digging the foundation, adding drainage and pea stone and backfilling: $7,600
- Concrete slab: $5.50/sq. ft.
- Concrete crawl space: $8.85/sq. ft.
- Full concrete basement: $11.75/sq. ft.
Home and Roof Framing Cost
- Average total cost: $51,589
- Cost range: $14.75 to $27.00/sq. ft.
- Average cost per sq.ft.: $19.89/sq. ft. ($51,589 / 2594 square feet of finished floor space)
- Share of total construction cost: 17.4%
Overview: This step includes the cost of the framing materials including the trusses and sheathing for the home, and the labor to construct the frame. Most trusses are built offsite in a factory, trucked to the construction site, and installed using a lift or by hand. Pitch of the roof and roof type – gable, hip, combination – affect the cost of the truss package and the amount of sheathing required.
Time frame: 7-14 days for most homes.
Potential pitfalls: Delays caused by bad weather or trusses not ready on time, builders having issues with the architect’s design.
An itemized list of average houses framing costs:
- Trusses: $2.42/sq. ft. of the home’s footprint
- Framing materials and labor: $15.66/sq. ft.
- Sheathing Materials and Labor: $1.24/sq. ft.
- Steel and supplies: $0.57/sq. ft.
Finished Exterior Construction Cost
- Average total cost: $41,690
- Cost range: $8.25 to $35.00/sq. ft.
- Average cost: $16.07/sq. ft.
- Share of total construction cost: 14.1%
Overview: Roofing and siding are usually priced by the square feet they cover. For consistency, these costs are based on the 2,594 square footage of the average single-family home.
Keep in mind that multistory homes have less roofing than ranch/single-story homes with the same square footage. The quality of the materials used produces wide cost ranges.
Time frame: 4-10 days
Potential pitfalls: Weather and material delays; Installation quality suffering due to inexperienced labor.
Itemized home exterior construction costs:
- Roofing: $3.84/sq. ft. of house floor space.
- Exterior Wall Finish (Siding/wall cladding): $7.45/sq. ft. of house floor space.
- Windows, doors, and garage door: $4.53/sq. ft. of house floor space.
Major Home Systems Rough-in Costs
- Average total cost: $43,668
- Cost range: $13.15 to $18.85/sq. ft.
- Average cost: $16.83/sq. ft.
- Share of total home construction cost: 14.7%
Overview: These electrical, plumbing and HVAC systems are installed before the drywall, flooring, cabinetry, and other finish items are installed.
Note: There’s a narrower cost range in piping and wiring than in other phases of home construction.
Time frame: 7-14 days
Potential pitfalls: Poor planning of the workflow can either lead to conflicts when contractors’ schedules clash or delays when no work is being done; delays can be caused by problems with the utility company installing its equipment.
Itemized home system rough-in average costs:
- Electrical mast, hookup, panel, and wiring: $5.32/sq. ft.
- Plumbing rough-in: $5.68/sq. ft.
- HVAC – Heating, air conditioning and ductwork average total cost: $14,111
Interior Finishes
- Average total cost: $75,259
- Cost range: $21.75 to $44.75/sq. ft.
- Average cost: $29.01/sq. ft.
- Share of total home construction cost: 25.4%
Overview: The quality of materials used is the major factor in the total cost.
Time frame: 14-35 days
Potential pitfalls: Once home construction has started, this is the area most prone to delays through material shortages, materials or appliances damaged during shipping, poor scheduling of the contractors or contractors being behind on other jobs, the homeowner wanting last-minute changes and delays in the bank clearing loan money to pay contractors.
Itemized home finished system costs based on the national average size of 2,594-sq. ft. for new single-family homes:
- Insulation: $2.00/sq. ft.
- Drywall: $4.10/sq. ft.
- Painting: $3.18/sq. ft.
- Flooring: $4.63/sq. ft.
- Doors and trim: $4.09/sq. ft.
- Appliances: $4,710
- Light fixtures and covers: $3,437
- Plumbing fixtures: $4,108
- Fireplace: $1,867
- Cabinets and countertops: $13,540
- Other: $923
Cost of Final Construction Steps
- Average total cost: $20,116
- Share of total home cost: 6.8%
Overview: These steps add the finishing touches to your home, and some are optional.
The type of driveway – gravel ($), asphalt ($$), concrete ($$$) or paver ($$$$), how much landscaping is done and whether any exterior structures are added are the major cost factors.
With the exception of the final cleanup of the interior, these are exterior projects and don’t affect the homeowner’s ability to move into the home. They are often delayed by months until weather permits.
Time frame: 7-21 days, weather permitting.
Potential pitfalls: Bad weather, contractor delays, wrong season for planting or installing a driveway.
Itemized final home construction costs:
- Final grading and landscaping: $6,255
- Driveway: $6,674
- Deck, patio, or gazebo: $3,547
- Construction cleanup and waste disposal: $2,988
- Other: $402
All Other Construction-related Costs
- Other: $11,156
- Share of total home construction cost: 3.8%
Total Home Construction Cost
Now, let’s add up the total costs and consider the cost per square foot based on the 2018/2019 costs for an average-sized single-family home 2,594 square feet:
NAHB Stats: The average contract price of $296,652. Thus, we can derive the average cost per square foot:
- Average total home construction cost: $296,652 (not including the cost of the land, lot finishing, and marketing and sales costs)
- Average cost to build per square foot: $114.36
Conclusion:
Home construction cost per square foot has risen from about $80/sq. ft. in 2011 to $95/sq. ft. in 2013 to today’s figure of $114.36, per the National Association of Home Builders, the industry’s leading professional association.
The NAHB also reports that the size of new homes has generally been rising over the last decade while lot sizes are shrinking!
If you’d like to share your costs for any phase of your building project, other readers will benefit from your experience.
Please share the information and the scope of the project! And if this home construction cost guide has been helpful, perhaps your friends and followers would benefit if you passed it on to them. 😉
Note:
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Thank you! I thought this was great! I understand that depending on the area & materials selected, prices will vary greatly, but this is a great start to figuring out a new build versus buying existing.
An architect I know says figures in Kansas City should be about $ 150.00/ sq. ft.
A guy I know who has a degree in construction management & 20 years experience says it’s $ 175.00/ sq. ft. but the decent subs are all busy with developers & you will never get a good price on one house. They are focused on guys doing many houses.
A small developer here in KC also says it’s $ 175.00/ sq ft. He says where he is building buyers won’t pay over $ 400,000 for a house.
On our street developers are buying properties for $ 200,000 & building about 2,600 sq. ft. & selling for $ 900,000.00.
RSMeans catalogues uses a city cost factor of .99 for our area.
Hi Robert,
Thank you for sharing the figures for the Kansas City area. It makes sense that the local figures are significantly higher than the national average based on the local market dynamics.
Since, local developers can sell a 2,600 sq. ft. property for $900,000, while the national median sale price of new single family homes in July 2019 was only $312,800, it is not surprising that the local developers can command much higher prices when it comes to the construction of new homes.
Clearly, local real estate market dynamics will greatly influence the local new home construction costs on a per square foot basis.
While these figures may be good for average construction pricing, these breakdowns are the wrong way to estimate the expenses to build a new house.
There are way too many unknowns and not all items are priced by square footage. For example, the price for the proposed plumbing is not related to the square footage of the house. It’s a formula of how many fixtures are in the house as well as the locations of the fixtures and supply connections.
If bathrooms are stacked it will be much cheaper than if you had to run plumbing to 2 or 3 bathrooms on each floor. The same goes for electric expense. You cost will vary significantly depending on if you are installing 5-6 ceiling lights or if you are installing 20+ recessed lights to cover the same area.
Similar variations can be found in window prices; Are you going with Anderson, Pella, or another brand. Are you doing basic double hung windows, or do you want to the blinds between the glass, which will double the cost of each window.
I find some of your estimates to be quite low. For example, you have flooring quoted at $4.75/sq.ft., but I’ve quotes for simple carpet at $7/sq.ft and hardwood at $14/sq.ft.
You have roofing at $3.90/sq.ft, but I’m getting quotes at upto $13/sq.ft. I live in the DC/Baltimore region, so I know labor cost are higher, but I’m getting the price to build a house at over 2.5 times your quoted $250k for a 2500 sq.ft. home at about $550k
Hi Sean,
Yes, it makes sense that you are seeing estimates at almost twice the cost of national average. Home construction and labor costs are potently ridiculous inside the beltway (Washington DC, Northern Virginia, and surrounding areas).
That said, the national average new home price was just a tad over $300,000 in November of 2018. This is some $40,000 lower than a year before! So, the prices of new homes have actually dropped by 11% on a year-over-year basis.
Regarding roofing costs, around the DC, your roof replacement costs on average would be around $7.50 per square foot for asphalt shingles (Source: RoofingCalc.com). For new construction, the cost of installing asphalt shingles over a clean deck with no removal and disposal of the old roof should be less than that.
It sounds like the roofing costs you reference include the roof framing costs as well? Either that or you may be pricing a material other than asphalt such as standing seam metal roof.
Again, DC area is definitely an outlier in terms of new home construction costs, so no big surprise that the costs you are being quoted are almost double. It’s pretty much a function of the local economy and real estate market.
Hi Sean,
In my area (Sunnyvale, CA – i.e. Silicon Valley) I find some of these estimates are very low. I am pricing out a 2000 sq ft home with 2000 sq ft basement, so 500 sq ft smaller than the estimates here.
Land development costs and fees: $42,000
Demolition and Grading (removing existing house on the lot): $124,000
Excavation and Foundation: $355,000
Carpentry plus thermal and moisture protection (similar? to Home and Roof Framing category): $297,000
Finished Exterior: $52,000
Major Home Systems Rough-in: $285,000
Interior finishes: $260,000
No landscaping, driveway, decks, or fences included in price.
Total, including Job Management fees: $1,550,000
These are averages from 3 quotes. Hope this info helps others in this area.
Sean you’re getting the homeowner price. I live in NVA and get those prices too. But I shop around a little more. Builders and home flippers like myself often get a better price by negotiating the price and letting them know if they have good prices I can use them again. Homeowners often have insurance pay the price and this leads to a lack of negotiating.
The highly educated people in this area and lack of tradesmen has led some contractors here charging exorbitant fees. Once they know that you can do the job yourself or have a contractor who can do it for 1/2 the cost they often become more willing to negotiate. Don’t bother using illegals, unlicensed contractors, or contractors that come knocking on your door.
I’ve seen many of those guys try to charge 2x’s market cost. Try contractors a little out of the area. They might charge a markup over their regular price for the drive but it’s still often a much lower final price.
To update those NHBA figures, you would need two additional factors. First, an adjustment based upon the increase in the cost of living. For 2018, the increase from 2017 is 2.1%. Second, an adjustment based upon Geographic location. For instance, the cost to construct the same house in Northeast Florida would cost approximately 88% of the National Average. But, in many areas, the cost is significantly above the National Average.
Lastly, the National Average is based upon wood-frame construction with siding, and shingles on moderately-pitched trusses. If your intend is to build using masonry, or conventional roof framing, or metal roofing, or any other non-standard materials, the National Average will not apply.
Thank you Fred, spot on!
This is a very helpful guide. A couple questions…. The prices listed for framing, plumbing, electrical, drywall, cabinets, painting, flooring, etc., do these prices include material and labor, or material only?
Also, I believe these are national average prices. Is there a resource that will show average prices for my state and county?
Hi Claud,
The average prices include both materials and labor. — These are nationwide prices.
We would recommend getting some quotes from local contractors to zero in on average prices for your state.
Do these costs include GC 20% fees? Also, is there a guideline for what $ of the home value should be tied up in land? Asked another way, out of the total home cost, what % is associated with the land acquisition?
Hi Frank,
The itemized costs don’t include the GC fees, those are extra if you decide to hire a General Contractor to manage the project or build the house for you. Land cost considerations are entirely location specific, so the answer is it depends.