You’ve always wanted to live in your dream house. However, building your dream house can be a big and challenging project. This article will guide you on how much it costs to build a house.
Average cost
The average cost for building a house is around $300,000, but it doesn’t include the land cost. Newly built homes can range from $300,000 up to several million. Keep in mind that the cost of house building can depend on several factors such as location, taste, and demand for materials and labor. Read more.
Factors that can affect the cost of building a house
Pre-construction expenses
The construction of your home can take about 7 to 24 months to finish. It depends on the availability of builders and materials in your area and site accessibility. The first expense in building your house is buying the plot of land. The cost of the land can depend on the view and soil quality of the location.
You need to inspect water and sewage to ensure that you can have a proper waste drainage system and water supply. It can cost around $4,500 and below.
If you wish to establish a custom home, you can hire a draftsperson or architect to design your desired floor plan. It can be 8 t0 12% of the cost of construction. You can also pay a project manager to assist you with:
- Finishing essential paperwork
- Coordinating laborers
- Management of workmanship quality
- Organizing material deliveries
Construction management expenses can be around 5 to 15% of the total house construction. You should also expect to spend on impact fees, building permits, and municipal or state fees before the construction process.
Cost of house exterior material
You may spend $1,400 to $3,200 for the excavation to have a sturdy foundation. When it comes to foundation, you can pay $4,500 to $13,500 for a standard slab foundation. If the foundation has a basement, you can spend $18,000 to $80,000.
The framing stage of the construction can cost $33,000 for high-quantity lumber. It includes walls, floors, and roof trusses. Metal stud framing can be around $20,000.
You should consider the cost of siding and roofing for your house. If you want to increase your home’s durability, you can prefer high-quality exterior siding and weatherproof wrapping. The cost of roofing can depend on your chosen type. You should have a landscaping budget for a beautiful finished product. It can range from $2000 to install sod grass and other plants.
Cost of house interior material
It is also better to prepare for home interior material expenses. The expense for HVAC installation is around $7,000 to $12,500. The fees may depend on the size of your house and the HVAC system type you want.
Expect to spend on electrical and plumbing installation. The installation cost of these systems can also depend on the wiring material, floor plan complexity, etc. Make sure to hire experts for these installations.
Then, you will have expenses for drywall, insulation, windows and doors, countertops and cabinets, flooring, fixtures, paint, furniture, and appliances. The costs of these can also depend on various factors.
Option to add solar panels
Installing solar panels on your new home can help reduce your long-term energy costs. The upfront cost to install solar panels ranges from $15,000 – $25,000 depending on the size of your system. Factors like your location, roof type, and energy needs will impact the overall price.
On average, solar panels in the U.S. cost around $3 per watt to install. For example, a 5kW system would cost roughly $15,000 before incentives. Prices have dropped over 70% in the last 10 years, making solar energy more affordable.
Besides the solar equipment, installation costs account for labor, permits, and inspections. Labor makes up the biggest chunk, costing $2-$4 per watt. Simple roof types like shingles are cheaper than tile or metal roofs. Also, difficult installations or custom racking can increase labor time and expenses.
The payoff period for solar panels is 6-8 years on average. This depends on electricity rates in your area and available solar incentives. Federal, state, and local incentives can reduce the installation costs by 26-44%. Once your system is paid off, you can enjoy 20+ more years of free electricity from the sun.
Adding solar to your new home is an excellent way to hedge against rising energy rates. With utility costs projected to increase, solar panels will save you more money as time goes on. And it adds instant equity by increasing your home’s value. Discuss solar panel options early on with your builder to incorporate into construction plans.
Final words
Generally, the cost of building your house can depend on several factors. You need to prepare a budget for the pre-construction expenses and interior and exterior material costs. Before constructing your dream home, you should have a plan to achieve your desired finished product.
Building your home is a valuable investment, so you should know and be prepared for the expenses needed for better results for your project. With this guide, we hope you have a clear idea of how much you will spend on building your house.
