How to Build a House in Illinois

Whether you want to build a house in a small town suburb or big city, the average cost to build a house in Illinois is higher than in most states. According to Today's Homeowner, Illinois has the fourth-highest estimated cost to build at an average of $380,189, for a 2,100 square-foot spec home. By comparison, the national average is $332,397.

It costs $287,337 on average to build a home in Chicago, according to Houzeo. This figure can add up to $437,337 if you include land costs, excavations, permits, and other expenses, such as the materials you choose. New home construction takes between nine and 12 months.

Custom vs. Production Homes

Another important variable that impacts the cost to build a house in Illinois is whether you are building a custom home or a “production” home. In this article, we’re discussing the cost to build a production home, which is one that is designed and constructed by a builder within a community of several homes. With a production home, the land, materials, and labor costs are typically all included in one price, although you may pay an additional premium for some lots within a community.

Prices for custom homes, which are designed specifically for you, vary even more widely than the cost to build a production home. Often, you’ll pay for the land separately, pay for preparing the land with infrastructure, hire an architect, and then pay a builder to build your completely personalized home. The financing process for a custom home can be more complex than it is to build a production home.

Step by Step Process to Build a House in Illinois

From the day construction begins until move-in day takes an average of seven months in Illinois, but the timing can vary widely depending on the size and style of the home, the availability of materials, the permitting process, whether the subcontractors are available when needed, and even the weather. If your builder has already taken care of the permits and started the foundation, the process can be a bit quicker. The following steps are part of the journey you’ll take to build your Illinois home.

Budgeting for Your New Home

Unless you plan to pay cash for your new home in Illinois, your first step will be to develop a financial plan. You can start with your own budget to determine your comfort level with your housing payment.

Next, consult a lender for a mortgage preapproval. An early consultation helps you understand how much you can qualify to borrow and identify any issues with your credit that need to be addressed. Your preapproval letter doesn’t commit you to working with that particular lender, so you if want to switch later to a builder’s preferred lender, you can.

How Much Does it Cost to Build a Home in Illinois in 2024?

The average cost to build a house in Illinois in 2024 ranges from $257,500 to $405,000, according to Houzeo. However, when including all associated costs, the total can reach up to $415,440.

Cost per Square Foot

The construction cost per square foot in Illinois varies, according to Today's Homeowner:

• Basic construction: $102 to $162 per square foot

• Mid-range to high-end finishes: $408 to $648 per square foot

• Luxury homes: $300 or more per square foot

Material Costs

Material costs account for approximately 50% of the overall construction price, averaging about $147,500 for a typical home, according to Houzeo. Some specific material costs include:

• Flooring: $5 to $12 per sq. ft.

• Drywall: $1.50 to $3.50 per sq. ft.

• Siding: $2 to $12 per sq. ft.

• Lumber: $5 to $11 per sq. ft.

Labor Costs

Labor costs typically represent 35% to 50% of the total project costs, according to Houzeo. Specific labor expenses include:

• Electrical work: $7,500 to $12,500

• Plumbing: Around $12,000

• HVAC installation: Approximately $12,500

Additional Costs

• Roof Installation: $3,100 to $35,500, depending on materials and size

• Land Costs: Vary significantly by location

• Building Permit: $1,000 to $2,000

• HVAC Permit: $250 to $400

• Plumbing Permit: $50 to $500

• Electrical Permit: $10 to $500

• Home Interiors: Around $20,000 for furniture, electronics, and essentials

• Foundation: $6 to $12 per square foot (according to Houzeo)

Cost Breakdown by Percentage

(Numbers according to SG Homebuilders)

• Foundation and framing: 15-20%

• Exterior finishes: 10-15%

• Interior finishes: 20-25%

• Mechanical systems: 15-20%

• Kitchen and bathrooms: 10-15%

• Site work and landscaping: 5-10%

• Overhead and profit: 10-15%

Your housing budget should include property taxes, homeowner’s insurance, and homeowner association fees. For 2024, the average cost of homeowner's insurance in Illinois is $2,407 for $300,000 in dwelling coverage, or roughly $201 a month, according to Bankrate. This is in line with the national average of $2,304 per year. Homeowner association dues vary according to your location and community amenities.

Don’t forget you’ll need cash for a down payment and closing costs. Closing costs vary by your jurisdiction and average 2 percent to 5 percent of the purchase price of the home.

Choose Your Builder

When you have a sense of how much you can spend to build a house in Illinois, you can begin to search for a builder. Most people start searching online in the location where they want to live and visit websites for communities and individual builders before touring models in person.

To find out more about a builder, you can visit communities where they have built homes, talk to residents about their experiences with the builder, and check reviews on a builder at TrustBuilder. Choosing the right builder has an important influence on the price and the quality of the home you build.

Line Up Your Financing

When you’ve chosen your builder and community, you’ll need to prepare to make a down payment and sign a contract. If your builder has a list of preferred lenders or a financing arm of their business, you’ll want to apply for a mortgage with one of those lenders.

You can consult another lender to compare rates and fees, but often you’ll benefit from using the builder’s lender with incentives such as paid closing costs and a streamlined experience. The builder’s lender will be in close contact with the staff to know when it’s the right time to lock in your rate and prepare for closing.

When you sign the purchase contract you typically need to provide a deposit that could range from a few thousand dollars to 10 percent of the purchase price. You could need additional cash to pay for upgrades that go beyond the norm for that community, and you may need cash for closing costs if your builder doesn’t pay them.

The good news is there are state and local homebuyer programs in Illinois for down payment assistance and financing.

Choose Your Lot and Your Floor Plan

The onsite sales professionals can help you decide which floor plan and which lot to choose that meet your needs and budget. Be certain you understand which features are included in the purchase price and which are optional. Some lots require an extra premium, so you’ll want to consider that in your financing.

The sales professionals can help you match the floor plan and the lot, since not every house can be built on every lot in a community. Ask about plans for the community that could impact your lot choices, such as future schools and shopping centers, and how much personalization is allowed.

Climate Considerations

While Chicago is known for its cold and windy winters, you could be susceptible to tornadoes, too. You may want to consider climate issues when you choose certain features for your home such as the roof style, windows, or siding. Your builder can help you make smart choices within your budget.

Permitting and Inspections

Before construction starts, your builder will need to obtain building permits. While there’s no statewide building code for Illinois, cities and counties have codes that must be met. Your home will be inspected multiple times during construction. You can also hire a third-party inspector, but you should consult your builder about when to schedule an inspection.

Timeline

The step-by-step process to build a house in Illinois takes an average of seven months, but your house could take less time or more time depending on the weather, the availability of labor and materials, and whether any construction was started before your contract was signed. Your best source of information while your home is being built is your builder. Communicate with them throughout the process, ask questions when you need to, and rest easy knowing your new Illinois home will be finished soon.