North Carolina is known not only for its picturesque landscapes, but also for its friendly people, mild climate, and booming economic opportunities. A growing number of individuals and families alike choose to make the Tar Heel State their home every year.
For many new homebuyers, the process to find a home that meets their specifications is tricky. If you’re looking for certain layout features, unique design elements, or specialty fixtures and finishes, then a custom-built new home may be a suitable option for you. The process might longer, but you can have peace of mind knowing that the finished product will perfectly meet your needs and preferences.
The first step to building your dream home in North Carolina is taking the time to research the step-by-step guide to the homebuilding process. By learning the basic steps, you’ll be better prepared for what to expect along the way.
Next, homeowners should create a preliminary budget for their new home project. It’s a good idea to stay on the modest side of things to start, then prepare for unexpected costs to pop up along the way. Using the U.S. average costs to build a home, new homeowners have a starting point to begin writing their basic budget and prioritizing certain features they want to be built in the design stage.
It’s important to remember that every state has its own costs and considerations associated with building new homes. In North Carolina, these are the items that you need to be aware of.
Climate Considerations
The mountainous region of the state tends to be generally cooler and experiences greater rainfall than the subtropical climate in the Southeastern region. However, the state typically experiences all four seasons and the climate is considered to be fairly mild.
The most frequently-occurring natural disasters in North Carolina are hurricanes or tropical storms, thunderstorms, winter storms, floods, and tornadoes. Homeowners should research their homesites and plan accordingly for any potential extreme weather events. Homeowners should purchase a robust home insurance policy that protects against damage by natural disasters.
In flood zones, basements are not advisable. Homeowners might consider the irrigation plan for their property if the area is prone to severe storms. Extra insulation along with well-sealed siding and ductwork will be beneficial in the case of severe thunderstorms and harsh winters to keep cold air and excess moisture out. In certain areas that may be at a greater risk of hurricane damage, homeowners may opt for storm windows and incorporate shelter areas in the design of the home.
How Much Does It Cost to Build a Home in North Carolina?
Building a home in North Carolina in 2024 involves various costs that can significantly impact the overall budget. Let's break down the key expenses associated with constructing a house in the Tar Heel State.
Land Costs
The first step in building a home is acquiring the land. In North Carolina, the median price per acre is $20,349, making it the 13th most affordable state for buying land in the US, according to Prime Land Buyers. However, prices can vary widely depending on the location. Urban areas near major cities like Charlotte and Raleigh typically command higher prices, while rural regions may offer more affordable options. On average, expect to pay around $23,300 per acre in North Carolina, according to Houzeo.
Permits and Preparation
Before construction begins, you'll need to obtain necessary permits and prepare the site. According to Houzeo, building permits in North Carolina typically cost between $1,000 and $2,000. Additional permits may be required for specific aspects of construction, such as HVAC ($250 to $400), plumbing ($50 to $500), and electrical work ($10 to $500). Site preparation costs can vary depending on the terrain and required work, but it's essential to factor this into your budget.
Labor Costs
Labor is a significant portion of the total construction cost. In North Carolina, labor costs for home construction generally range from 10% to 20% of the total project cost. This includes the fees for general contractors, subcontractors, and various skilled workers involved in the building process, according to Houzeo.
Framing
Framing is a crucial stage in home construction. In North Carolina, the cost to frame a house typically ranges from $7 to $16 per square foot, including both labor and materials. For a 3,000-square-foot home, framing costs could range from $21,000 to $48,000. The complexity of the design and the number of stories can significantly impact this cost, according to HomeAdvisor.
Foundation
In North Carolina, slab and crawlspace foundations are often the most popular choice. Basements tend to be less common due to the soil composition and saturation.
Areas that tend to have damp soil may not be well-suited for a basement, similar to lots with heavy clay soil that can add pressure to underground structures when shifting over time. The cost to build a slab or crawlspace foundation in North Carolina is similar to the U.S. average cost for a home foundation.
Cost of Materials
Material costs can fluctuate based on market conditions and supply chain issues. In 2024, some key material costs in North Carolina include flooring at $3 to $12 per square foot, drywall at $10 to $13 per sheet, siding at $3 to $11 per square foot, and lumber at $3 to $12 per square foot, according to Houzeo.
Electrical
Electrical work for a new home in North Carolina typically costs between $7,500 and $12,500. This includes both the rough-in and finishing work, with costs ranging from $3 to $6 per square foot. The final price can vary based on the size of the property, type of wiring, and complexity of the electrical system, according to Houzeo.
HVAC
Installing an HVAC system in a new North Carolina home costs around $12,500 on average. This can vary based on the size of the home, the type of system chosen, and the brand of equipment. Some high-end or complex systems may increase this cost by $2,000 or more, according to Houzeo.
Plumbing
Houzeo states that plumbing installation for a new home in North Carolina averages about $12,000. This includes installing fixtures such as toilets, faucets, wash basins, and bathtubs. Homeowners typically spend around $4.50 per square foot on plumbing in new construction.
In conclusion, the total cost to build a house in North Carolina in 2024 ranges from $320,000 to $600,000 on average, not including the cost of land or site preparation, according to Homeguide. The price per square foot varies from $180 to $250 for a basic home and $250 to $450 for a custom home. Keep in mind that these figures can fluctuate based on location, materials chosen, and the complexity of the design.
Finishing Features and Appliance Installation
After the bare bones are completed, your builder will move on to the cosmetics of the home. Finishing features such as custom cabinetry, flooring options, light fixtures, and landscaping options add the personalized touch that makes your new home fit your own personal lifestyle.
Don’t forget to choose your appliances early so that they can be delivered and installed prior to your move-in date, making your home ready for occupation.
Helpful Tips for Building in North Carolina
Finally, below are a few tips and tricks for building your dream North Carolina home.
Closing Cost Incentives
Often, state governments and local municipalities offer various financial incentives for new and repeat homebuyers. Connect with your local building or residential development office to find out more about down payment and closing costs assistance. Doing so may save you thousands of dollars that you can otherwise spend on other aspects of your new home.
General Timeline
In general, it takes approximately five to seven months to build a house in North Carolina from start to finish. This lines up with the average for all U.S. custom home building projects.
Build Your North Carolina Home
Countryside views and scenic mountain ranges await you in North Carolina. Take your time to incorporate your favorite design ideas into your dream home, making it the perfect space for you to live and grow.
Erin Nicks
Erin Nicks has written for various publications for more than 20 years. She has covered new home construction for industry-leading websites and publications, such as Livabl, ARCHITECT, Multifamily Executive, and Builder Magazine.