How to Build a Home on Your Land in Tennessee

Tennessee is home to rolling hills and a legendary country music scene, but that’s not all this southern state has to offer. Tennessee is ranked as the state with the 17th lowest cost to build a home, making it a much more affordable option for your future home than other states.

When it comes to land, there are three general regions: East, Middle, and West Tennessee. East Tennessee is home to the southern end of the Appalachian Mountains, also known as the Great Smoky Mountains, and provides any home with a beautiful mountain landscape. The middle and western regions of the state are flatter and contain some of the state’s biggest cities and most fertile farmland.

Whether you want a home in the lush mountains or in the city, there are a few things you should keep in mind while building a new home in Tennessee. Building your dream home is no easy feat, but here is a step-by-step guide to help you through the process.

The Cost of Building a House in Tennessee

Custom vs. Production Homes

The choice between a custom and production home is important to consider early in the homebuilding process. This will help you choose a lot, builders, and more. A custom home is exactly that, fully custom. You would work directly with your builder, making sure your house looks from top to bottom, inside and out, exactly how you want.

Building a home in Tennessee in 2024 comes with varying costs depending on factors such as location, size, design, and materials used. For production homes, which are built using pre-designed floor plans, the costs tend to be lower. A 2,000 square foot production home in Tennessee would cost approximately $282,500, based on the average cost of $141.25 per square foot, according to Houzeo. A smaller 1,500 square foot production home would cost around $211,875.

Meanwhile, custom homes, designed and built to the homeowner's specifications, are generally more expensive. In Tennessee, custom homes can range from $360,000 to $700,000 for a typical 2,000 square foot home, according to HomeGuide. The cost per square foot for custom homes varies from $180 to $350 or more, depending on the level of customization and finishes. High-end custom homes can exceed $500 per square foot.

Regarding material costs for building a house in Tennessee, they make up about 50% of the overall construction prices. Homeowners can expect to spend approximately $50 per square foot on material costs, according to Houzeo. For a 2,500 square foot house, material costs would be around $147,500. It's worth noting that material costs can fluctuate, with some products experiencing price hikes and shortages, while others may see more stable pricing.

The cost breakdown for building a home in Tennessee includes various components. Foundation costs range from $10,000 to $35,000, framing from $30,000 to $70,000, roofing from $6,000 to $40,000, and siding from $10,000 to $40,000, according to HomeGuide. Other significant costs, including windows and doors ($16,000 to $50,000), electrical work ($12,000 to $20,000), plumbing ($10,000 to $18,000), and HVAC systems ($7,000 to $16,000) should be considered.

It's important to consider additional costs such as land purchase, which averages $22,700 per acre in Tennessee, and building permits, which average around $5,000, according to Houzeo. Site preparation, including land clearing and leveling, can cost between $1,500 and $3,000. These factors, along with location-specific considerations like urban vs. rural areas, design complexity, and labor costs, all contribute to the final cost of building a home in Tennessee in 2024.

Keep in mind, there’s a lot to consider when buying land. Buyers should do their research and talk to local experts before purchasing.

Construction Timeline

Nationwide, it takes approximately 6-8 months to build a new house. In that timeframe, several things need to occur before a home can be built.

Purchase a Lot

When searching for a dream lot, consider what you want, including the price point. It is also important to consider how difficult it is to make the land livable. For example, if a buyer purchases a lot on a mountainside in western Tennessee, it will be expensive to prepare. However, with a flatter lot, minimal work will be required – other than basic leveling and tree removal.

Find a Builder

Finding a builder is a huge part of the process. The builder will be the right-hand person in the construction process and the person the buyer trusts with the completion of their home. From planning to building to valuable advice from their years of expertise, buyers will want to find a builder that will turn your house into a home.

Permits and Paperwork

The builder will help with all the permits and paperwork required for all states of the building process. For example, buyers will need to apply for a Residential Permit from the state before new home construction can begin. This can be a long process, so be patient and trust the process.

Building the Home

After the preliminary steps and paperwork are completed, the work can begin. To start, the lot will be cleared of any debris and trees that may be in the way of the home and the ground leveled. The foundation will be laid and then the house will be framed. This, of course, skips many steps and there are more detailed steps to building a house.

Helpful Tips for Building a Home in Tennessee

Still need help? Here are some helpful tips for building a home in Tennessee.

Closing Cost Incentives

Even with a new build, there are still certain closing costs. Luckily, Tennessee’s closing cost incentives will help lower the expenses. Click here to learn more about the closing process.

Finding a City You Love

Tennessee is home to a wide variety of cities, with many options to explore. Check out this list of the safest cities in Tennessee for list of places to investigate within the state. Looking to retire? Luckily, there are plenty of retirement-friendly cities in the state of Tennessee.