Kristina Zagame is a journalist with a background in finance, home improvement and solar energy. She aims to simplify data and information so homeowners feel well-equipped to take on their dream home projects.
Lead Data Analyst
Stephanie Horan is a lead data analyst and journalist for the research team at Today’s Homeowner. Stephanie is a Certified Educator of Personal Finance (CEPF®). Beginning her career in asset management and transitioning to data journalism, she is passionate about bringing data to life and empowering individuals to make informed home buying and home improvement decisions.
March 24, 2024 by Kristina Zagame
Homes continue to sell above asking price in many areas of the country, which may have some prospective home buyers wondering, “Is it cheaper to build a home than to buy one?”
The answer: probably not.
The cost to build a new home has increased with inflation and from lingering pandemic supply and demand issues. And with that, new housing starts decreased throughout 2022, declining by more than 27% over the year.
Of course, that’s not a blanket statement for every area. Many factors impact local markets, creating differences in new home start projections and the labor and material costs to build homes in each state. Today’s Homeowner took a thorough look at what goes into the cost of building a house in each state, analyzing the main cost drivers and geographic differences.
Outside of land and land preparations, there are many costs associated with building a home. The table below shows the average cost by type of expense (including the cost of materials and labor) for a 2,100-square-foot home. Labor typically averages 36% of the total cost of building, excluding contracting upcharges.
We estimate that the average total exterior cost for a 2,100-square-foot home is roughly $150,900. There are 10 primary expenses relating to your home's exterior that sum to that total. For more details on each, click through the expenses below.
Survey and EngineeringBefore you break ground on your new home construction, you have to get your plot of land approved. To start, a land surveyor or engineer will come out and look at your land and your blueprints to ensure your dream home is doable from both a practical and safety standpoint. They’ll also be the person to help you through getting the appropriate permits approved from the city.
An engineer will visit multiple times throughout your home build process to ensure structural integrity. We estimate $5,000 to cover all surveyor and engineer costs, as many charge flat and hourly fees.
FoundationYour home's foundation is one of the most expensive pieces of a home build, costing about $20,900 for the average 2,100-square-foot home. However, the three primary types of foundations — slab, crawl space, and basement — have varying price tags.
A simple slab (a flat concrete pad poured directly onto the ground) can be most affordable, while a crawl space or furnished basement can cost up to $30,000 or more.
Read our foundation repair cost guide to learn about regular maintenance and repair costs you may need.
Framing is the stage where your house takes shape. It’s the most significant portion of the home-building process — physically and financially — and costs $49,622 on average for a 2,100-square-foot home. But price depends on materials, home size, layout, labor, and market conditions for lumber.
Lumber is the most common method for new U.S. home builds, but metal studs or concrete block construction (CMU) are popular in parts of the country. Expect to pay between $40,000 and $68,000 for framing, with costs varying depending on the type and availability of material used.
The sheathing is the outer layer or casing that construction crews place on your home during the building process. This material strengthens your home, protects it against the elements and provides a sturdy foundation for roofing, siding and flooring. Sheathing will cost around $11,100, depending on material and quantity.
Wood is the most common home sheathing material, typically plywood or oriented strand board (OSB). Some other materials include fiberboard, cement, gypsum, or glass mat.
Once your roof is framed, it’s time to install a roof system. New roof installation costs run between $10,000 and $20,000, on average. The final cost will depend on size, shape, slope, and roofing material.
Asphalt shingles are one of the most affordable and common, ranging from $1,200 to $12,500 for a 1,000-square-foot roof. Explore our in-depth article to learn more about the price of asphalt roofing.
The typical cost for tin roofing or any type of metal roofing ranges from $4,500 to $18,000 for the same size roof.
Windows and DoorsHomeowners typically choose between wood and vinyl materials for windows and doors, with costs varying by type. Expect to spend between $12,000 and $20,000 for exterior window and door installations, with the average homeowner spending $14,615. Interior door installations cost between $200 and $300 per door.
Siding is the material that wraps around the frame and protects your home from the elements, so choosing a durable material is essential. Siding installation costs between $10,000 and $17,000 on average, depending on the material and size of the home. The average U.S. home builder will spend $12,310.
Most homeowners will choose between the following siding materials, priced per square foot:
Flatwork and DrivewayConcrete slab flatwork and driveways will cost similar to foundation costs of about $10.55 per square foot. Flatwork includes any type of hardscaping, including sidewalks and patios. We estimate the average 2,100-square-foot home will pay around $4,000 for flatwork, although it’s highly dependent on your desired yard aesthetic.
Asphalt and gravel driveways are more cost-effective options, but asphalt will lead to higher prices over time because it’s a higher maintenance material. The average new home builder will spend between $3,000 and $5,000 on the driveway alone.
Decking material costs range from $3 to $15 per square foot, with labor costs from $8 to $22 per square foot. Decks are usually built with bamboo, cedar, composite, ipe, pressure-treated lumber, or redwood. Prices vary based on durability, but the average deck costs between $8,000 and $13,500 to build.
LandscapingLandscaping amounts to about 2.5% of the total new home construction budget because you’ll have to transform a construction site into the pristine yard you envision. Most new-home builders spend around $7,500 on landscaping, including gardens, shrubbery, and tree planting.
Installing sod (grass) and other greenery will likely put you back at least a few thousand dollars. Growing grass by seed is cheaper but requires much more time and patience.
The average total interior cost for a 2,100-square-foot home is about $101,300. Like exterior expenses, we defined 10 primary interior costs of home building. For more details on each, click through the expenses below.
ElectricalRunning electrical wiring throughout the house costs between $5.50 and $5.70 per square foot, with the average homeowner paying about $11,917. Materials sell for roughly the same amount throughout the country, but the complexity of your home’s layout and the number of installed lighting fixtures and outlets will affect labor costs.
Expect to pay between $10,000 and $14,500 for electrical installation.
Heating, ventilation, and air conditioning (HVAC) installation includes ductwork, central AC and a furnace, and hooking up any associated HVAC systems. Costs depend on the type of HVAC system you pick, your home's size and layout and your climate. We estimate the average homeowner pays $10,000 for HVAC installation.
Read our HVAC installation cost guide for a breakdown of what goes into these pricing estimates.
InsulationThere are a few types of insulation, including rolled, blown-in and spray foam. Installation cost depends on the size of your home and the materials you choose, but expect to pay between $5,000 and $7,000 for insulation material and labor. The average is $6,017.
Rolled installation, also called batt, or batten, is typical for walls and some ceiling and roof applications, while ceilings and attics get blow-in insulation. Installers can use spray foam in all applications, but homeowners can expect to pay two to three times more for spray foam than traditional methods.
There are three stages for adding new-home plumbing: rough in below ground, rough in above ground, and installation. On average, plumbing installation costs $900 per tub or shower and $400 for non-tub fixtures. Using these estimates, each full bathroom costs around $1,700.
You’ll likely spend between $12,500 and $21,000 to plumb your home, with the average plumbing budget at $15,944.
Drywall, Wall Textures, and PaintingInstalling wall and ceiling drywall and adding paint throughout the home will cost you between $10,000 and $17,000. Drywall is cheaper and easier to install than plaster, so it’s the go-to material for most homeowners today. However, plaster has its benefits, including higher fire and mold resistance.
Like most aspects of home construction, flooring costs vary based on the type and quantity of material. Hardwood flooring installations cost between $6 and $25 per square foot. The cost of epoxy flooring is between $3 and $12 per square foot, while vinyl flooring (check out our comparison of wpc and spc vinyl flooring) typically costs around $4.50 to $5.00 per square foot.
Expect to spend between $11,000 and $15,000 on indoor flooring installation. The average price is $12,964.
AppliancesWe put most of the interior aspects of your home under the “appliance” category, including cabinet and island installation, along with typical items like a washing machine and a refrigerator.
It’s hard to give an exact cost estimate for appliances because it will heavily depend on what features and technology you have installed in your home. We estimate the average home build will require a budget of around $26,000 to account for all appliances.
You’ll need to dig into the ground to install pipes, lines and wires to get your utilities hooked up. To examine utility costs, we grouped sewer lines, natural gas lines and water main installation, examining labor and materials for piping.
Costs can vary widely depending on the specifics of your home and the distance to correlating city pipes. Expect to pay between $2,700 and $6,000 on average to install and connect these lines to your city’s system.
It’s important to note that our figure does not include the cost of a new septic system. If your land lacks public sewer access, you’ll need to install a new septic tank system, which can add tens of thousands of dollars to the project. The price of connecting utilities may also rise depending on soil conditions, distance from your home to the public system, and installation difficulty.
The house trim is the material that goes around the base of your home, as well as windows, doors, and other features. It can be seen on both the interior and exterior of your home. Again, costs will vary by material and quantity but expect to pay $1,850 on average.
Adding a fireplace is a relatively inexpensive way to boost home value. Fireplace installation costs typically range between $800 to $4,000, with the average new fireplace adding about $890 to the total home construction cost.
Beyond exterior and interior expenses, individuals building their own homes will also need to factor in additional costs. The two primary extra expenses are trash cleanup and equipment rentals along with a contractor's upcharge. See more details on each below.
Trash Cleanup and Equipment RentalWhile your contracting crew will likely set up and clean up the construction site, you'll be responsible for the bill. Trash clean-up adds another $3,000 on average to your new home construction cost. You’ll also be responsible for other costs, like a portable toilet rental, which typically costs about $500.
Contractor UpchargeA contractor upcharge is an amount your contractor adds above the direct cost of materials and labor. It includes direct, indirect, fixed or variable costs spent building the home. It also covers administration fees, transportation, overhead, and profit.
Contractors usually use a fixed price model or a cost-plus model. With a fixed-price contract, you get the up-front estimates of the upcharge. With a cost-plus, you’ll receive an estimate upfront but won’t get the final price until the project is complete.
These markups vary from contractor to contractor, but we assumed a fixed 30% contractor upcharge across all states for our estimates.
Material and labor costs vary significantly by state, hence the estimated cost of building the same 2,100-square-foot home ranges from roughly $287,700 in Mississippi to about $431,400 in Hawaii.
Many states where home building is expensive are known for their high living costs. Following Hawaii, Massachusetts and New Jersey rank as the No. 2 and No. 3, respectively, as the most expensive states to build a home. Interestingly, though California is known as one of the most expensive states to live in, it ranks No. 8 overall in building costs, trailing other states in the Northeast, including New York and Connecticut.
In Southern states, where building costs are low, the average price per square foot for building our model home can be as little as $140. That’s true in Alabama, Arkansas, and Mississippi. If you're wanting to build a dream home on a smaller budget, you may want to consider moving down South. The table below ranks states according to the average cost of building a house, from most affordable to least.
We found that building a home is significantly more expensive than buying in most states. Specifically, in 28 out of 50 states, the average cost of building a home is at least $100,000 more than the median home price.
Building a home includes construction costs for materials and labor and the cost of the land (and potentially the preparation of that land). Data from the Federal Housing Finance Agency estimates the average price per acre of residential land, but lot sizes vary significantly by geography.
Assuming the median lot size in each state and the average price per square foot, we combined the average cost of building a 2,100-square-foot home with land prices and compared the total average cost of a newly built home to median home prices in the state.
Some states buck the trend. Building a home is the most cost-effective in several Western states, including Utah, Colorado, and Washington. The map below compares the average home building cost and median home sales price.
Although the numbers above show the financial benefit of buying an existing home compared to building one in each state, people may have specific desires that they can only get by starting from scratch.
Below are some advantages and disadvantages to consider if you’re thinking of building a home.
