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Home » Buying a New Home » How Much Does It Cost Per Square Foot to Build a New House?

How Much Does It Cost Per Square Foot to Build a New House?

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The 2019 Construction Cost survey by the National Association of Home Builders (NAHB) found that the average cost per square foot to build a single-family home came out to around $114. In this survey, construction cost totaled $296,652 for an average 2,594 sq. ft. home.

Of course, the design of a home will influence construction costs. However, construction and material quality, as well as interior finishes, tend to have a significantly higher impact. What does this mean exactly? Outfitting even the smallest of homes with the latest and greatest finishes the highest quality construction materials will still cost a pretty penny.

So what can you expect to pay? Well, that largely depends on where you’re building. The cost of land, labor, and materials varies widely across the country, depending on a region’s climate or the natural disasters tow which it is prone. And don’t forget that high demand increases price: If you’re building in a highly desirable area, expect land to be even pricier.

Cost Per Square Foot of New Single-Family Homes in 2017

New Single-Family Homes Sold in 2017

RegionAverage Cost Per Square FootMedian Cost Per Square Foot
All US Regions$111.05$101.25
Northeast$161.53$148.15
Midwest$106.79$104.15
South$100.01$95.35
West$139.48$126.42

Source: U.S. Census Bureau Survey of the Median Price per Square Foot of new single-family homes, 2017. Note that the detailed 2019 survey has not been released.

New Contractor Built (Custom) Single-Family Homes Sold in 2017

RegionAverage Cost Per Square FootMedian Cost Per Square Foot
All US Regions$120.03$107.39
Northeast$158.72$161.53
Midwest$121.04$116.37
South$100.91$92.56
West$167.24$120.03

Source: U.S. Census Bureau Survey of the Median Price per Square Foot of new single-family homes, 2017. Note that the detailed 2019 survey has not been released.

Northeast region: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, Pennsylvania
Midwest region: Illinois, Indiana, Michigan, Ohio, Wisconsin, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota
South region: Delaware, D.C., Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, West Virginia, Alabama, Kentucky, Mississippi, Tennessee, Arkansas, Louisiana, Oklahoma, Texas
West region: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, Wyoming, Alaska, California, Hawaii, Oregon, Washington

Production Home vs. Custom Home?

While the above is an average of all homes built within a given region, new homeowners considering custom homes should be ready to pay a bit more in additional costs that are specific to the custom homebuilding process.

  • Architects: According to HomeAdvisor, architects can cost anywhere from $60 to $125 an hour. For a 2,500 square foot house, and hiring an architect at $60 an hour, the design fees can run at about $4,000.
  • Engineers: Expect to pay around $100 to $150 for their expertise.
  • Land Surveyor: Fees can range anywhere from $200 to $800 depending on your lot size, location, and the age of the lot

Again, these price points are added to the overall costs of buying your own lot, building materials, other labor costs, and machine and equipment costs.

Be Sure to Plan Ahead

Whether you’re going with a production home or a custom home, ,ake sure to establish a realistic budget with your builder and stick to it. Don’t be enticed by nicer looking designs to add to your home if it puts you way out of your budget. Most homebuyers know that additional customizations will increase the cost of your custom home, but unexpected costs can take you by surprise, so make sure to do your homework.

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Roy Diez

Roy Diez is a freelance writer and marketing professional specializing in the architectural, building and construction industry. He is a former editor-in-chief of Professional Builder magazine.

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Reader Interactions

Comments

  1. Robert Newell

    February 24, 2020 at 9:03 am

    Interesting information..Our builder has evovoled using cinder block construction resulting in a reduced K factor and now is using wood vs cinder block and indicated the ccost is the same as is the K factor..for a 2100 sq ft house in AZ do you have a comparison on k factor and cost diferences?

    Reply
  2. Stephanie Brett Williams

    April 18, 2020 at 9:54 am

    We are looking into building a home and are new to the process. Your article was very informative. It broke everything down in sections and explained everything perfectly 👍

    Reply
  3. Vikram bhat

    July 25, 2020 at 4:29 am

    I’m looking for build a house in 20/30 area means 600 sqrft can I get idea on this??

    Reply
    • Jamie Garcia

      July 28, 2020 at 2:46 pm

      Hi Vikram,
      You’ll need to talk with your builder for an accurate estimate.

      Reply

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