Unveiling the Hidden Price Tags: The Cost of Building Your Dream Home 2024

Building a house demands ample patience and meticulous planning, especially regarding the costs you need to anticipate. Discover some costs you need to know before building your dream house.

(Photo : Getty Images/Matt Cardy )

Expenses on Building A House

New House Cost Per Square Foot

The typical cost of constructing a new home in the neighborhood is $150 per square foot. This value will change depending on your area because the price per square foot to build a house fluctuates depending on the ZIP code. Use an online construction cost estimator to calculate how much it costs per square foot to construct a home in your area. Thus, it is essential to remember that the cost per square foot only accounts for the house at hand. House builders must also budget for lot purchase and completion.

New House Cost Per Bedroom

The quantity of chambers desired should be considered when calculating the construction cost. Every room in your floor plan increases the home's square footage and price, ranging from $122,000 to $375,000.

Pre-Construction Costs

Before building ever begins, several expenses need to be taken into consideration. A professional team prepares, tests, and inspects the property and utilities the residents will need. In addition to obtaining permits, it is necessary to develop plans and designs. 

Among these pre-construction expenses are the following: the price of the plot (ranging from $3000 to $150,000), the cost of water, sewage, and other inspections ($8,400), house plans or architectural fees (($2,000 and $20,000), construction management fees ($3,000 to $52,000), and building permits and local fees ($1,200 and $2,000,).

House Exterior Material Costs

Costs associated with the exterior of a property include landscaping and site preparation, as well as any materials that contribute to the structure of the property and its general appearance and atmosphere from the outside. The components encompassed in this cost breakdown are as follows: excavation ($2,300), driveway ($5,900), framing ($20,000 to $50,000), roofing ($8,500 or $1.50 to $5.50 per square foot), siding ($2 to $9 per square foot), and landscaping ($8,200).

Home Interior Material Costs

All materials needed to cover a house's frame and decorate its rooms will increase your project cost. Each of these expenditures will depend on the size of the home you build, your style, and whether you use high-end or budget items. These include HVAC ($5,000-$34,500), Plumbing ($1,500-$17,500), Electrical ($7,000-$13,500), Insulation ($3,000-$10,000), Drywall ($2.25 per square foot or $15,550), Doors and Windows ($400-$3,500 each), Cabinets and Countertops ($100-$1,230 per linear foot), Trim ($1,500 on average), Flooring ($1 to $10/sq ft), Paint($300 to $28,000), Fixtures ($2,000-$12,000), appliances ($3,000-$15,000) and Furniture ($20,000-$80,000).

Also Read: Factors Affecting Housing Prices in 2024: From Interest Rates to Investors' Return to Market

Is It Less Expensive to Purchase or build a home?

Purchasing an existing home is typically more cost-effective than building a new one, primarily due to the high construction cost, particularly for labor and materials, which have climbed in tandem with inflation. 

Nevertheless, when you construct your own home, you receive a brand-new dwelling designed according to your specific requirements. On average, the cost of building a house is $305,829s. Including land charges, excavations, permits, and additional expenditures can bring the total to $480,000. 

Moreover, building a brand-new house can take nine to twelve months. In contrast, a rental property can be acquired in 1.5 to 2 months for $413,874, the typical purchase price as of November 2023. Also, purchasing a complete property has been simplified and is more cost-effective.

Related Article: Watch Out for These 8 Most Common Construction Mistakes