How Much Does it Cost to Build a New House: Itemized Costs in 2022 (2022)

The cost to build a house includes a large number of components and variables based on site factors, design and materials. There’s a lot of information to tackle, but that’s what we’re here to do. You won’t find a more comprehensive, itemized list of costs for building a home from the initial site work on a vacant lot to the finished product. This home construction cost guide covers:

  • Land development costs and fees
  • Foundation costs
  • Framing costs
  • Exterior finish costs such as siding and roofing
  • Interior rough-ins such as plumbing and electrical
  • Interior finish costs from drywall to flooring, cabinets and countertops
  • Final grading and landscaping
  • Driveway and deck

Update: new home construction costs have increased by 17.5% on a year-over-year basis in 2021 compared to previous year. Inflation in the cost of building materials and labor shortages have contributed to the increase in new home building costs.

In each section, you’ll find: a price range and an average cost for that phase, factors affecting cost, percentage of the whole cost that each phase represents, potential pitfalls, and a timeline for each phase of development and construction.

For each pricing section below, be sure to add ~20% to arrive at the current new home construction costs.

Average Home Size

According to the US Census Bureau, the median size of new homes sold in 2019 (latest available data from Census) was 2,438 square feet.

Now, according to the NAHB survey (which is largely in line with the US Census bureau) published in January 2020 (NAHB survey was conducted in the Fall of 2019), the average size (not median) of a new single-family home sold in the US was 2,594 square feet of floor space (house footprint) in 2019. That’s the size we will use for the average new home construction costs provided below.

Note the results of the upcoming NAHB home construction costs survey for 2020 is expected to be published in the Fall of 2021 (based on the previous publishing schedule). Thus, the cost data is provided in the latest report is backward-looking and doesn’t take into account two years of inflation. We recommend adding 5-7 percent to the costs provided in this report to arrive at the current average market prices to build a new single-family home in 2021.

Let’s jump into residential home construction costs from start to finish:

Residential Construction Site Work Cost

  • Average cost: $18,323
  • Cost range: $10,000 to $25,000
  • Share of total construction cost: 6.2%

Overview: These are fixed costs regardless of home size. This phase involves the work needed to make vacant land habitable. Engineers inspect the property to determine whether it is buildable, where the home (and well and septic field, if applicable) should go and how the site should be graded for drainage.

The more complex the site and house design, the higher the fees will be. Water on the property typically raises the costs significantly, as an impact study must be done. The design, engineering and studies are often done for entire developments, so the absolute costs might be higher, but the cost could be less on a per-home basis.

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Time frame: 4-10 weeks depending on the complexity of the inspections and engineering and the workload of the engineers.

Potential pitfalls: Finding wetlands on the property or a water table so high it prohibits building or the installation of a basement or standard drain field, delays in getting site reports completed or plans approved.

Here is a breakdown of the average costs of the steps involved in permitting, planning and preparation process based on the 2,594 sq. ft. house footprint:

  • Permits, fees, and inspections: $5,086
  • Impact study cost, if required: $3,865
  • Architecture & site engineering fees: $4,335
  • Water and Sewer fees Inspections: $4,319
  • City water hookup: $1,500 or Well: $4,500
  • City sewer hookup: $2,500 or Standard septic system: $3,700 or Engineered (mound) septic system: $13,500
  • Other: $719

Excavation and Foundation Cost

  • Average total cost: $34,850
  • Cost range: $10.75 to $19.25/sq. ft.
  • Average cost: $13.43/sq. ft. ($34,850 / 2594 square feet of finished floor space)
  • Share of total construction cost: 11.8%

Overview: Installing the home’s foundation involves excavating the site by clearing brush and trees, removing the topsoil for the home and driveway, grading the site for drainage, and installing a concrete foundation, either a full basement, crawlspace, slab, or a combination, and backfilling the foundation.

Did you know? The type of foundation is the largest cost variable.

Time frame: 5-10 days including up to 7 days to allow the concrete to cure before building on it.

Potential pitfalls: Muddy conditions making it impossible to get heavy equipment or a concrete truck onto the work site until the soil is drier, spring frost laws (seasonal weight restrictions) preventing concrete trucks from using roads leading to the site until the frost is out of the ground, excavator behind on other work.

Itemized excavation and foundation average costs:

  • Dirt work – removing topsoil, digging the foundation, adding drainage and pea stone and backfilling: $7,600
  • Concrete slab: $5.50/sq. ft.
  • Concrete crawl space: $8.85/sq. ft.
  • Full concrete basement: $11.75/sq. ft.

Home and Roof Framing Cost

  • Average total cost: $51,589
  • Cost range: $14.75 to $27.00/sq. ft.
  • Average cost per sq.ft.: $19.89/sq. ft. ($51,589 / 2594 square feet of finished floor space)
  • Share of total construction cost: 17.4%

By RNB Design Group

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Overview: This step includes the cost of the framing materials including the trusses and sheathing for the home, and the labor to construct the frame. Most trusses are built offsite in a factory, trucked to the construction site, and installed using a lift or by hand. Pitch of the roof and roof type – gable, hip, combination – affect the cost of the truss package and the amount of sheathing required.

Time frame: 7-14 days for most homes.

Potential pitfalls: Delays caused by bad weather or trusses not ready on time, builders having issues with the architect’s design.

An itemized list of average houses framing costs:

  • Trusses: $2.42/sq. ft. of the home’s footprint
  • Framing materials and labor: $15.66/sq. ft.
  • Sheathing Materials and Labor: $1.24/sq. ft.
  • Steel and supplies: $0.57/sq. ft.

Finished Exterior Construction Cost

  • Average total cost: $41,690
  • Cost range: $8.25 to $35.00/sq. ft.
  • Average cost: $16.07/sq. ft.
  • Share of total construction cost: 14.1%

Overview: Roofing and siding are usually priced by the square feet they cover. For consistency, these costs are based on the 2,594 square footage of the average single-family home.

Keep in mind that multistory homes have less roofing than ranch/single-story homes with the same square footage. The quality of the materials used produces wide cost ranges.

Time frame: 4-10 days

Potential pitfalls: Weather and material delays; Installation quality suffering due to inexperienced labor.

Itemized home exterior construction costs:

  • Roofing: $3.84/sq. ft. of house floor space.
  • Exterior Wall Finish (Siding/wall cladding): $7.45/sq. ft. of house floor space.
  • Windows, doors, and garage door: $4.53/sq. ft. of house floor space.

Major Home Systems Rough-in Costs

  • Average total cost: $43,668
  • Cost range: $13.15 to $18.85/sq. ft.
  • Average cost: $16.83/sq. ft.
  • Share of total home construction cost: 14.7%

Overview: These electrical, plumbing and HVAC systems are installed before the drywall, flooring, cabinetry, and other finish items are installed.

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Note: There’s a narrower cost range in piping and wiring than in other phases of home construction.

Time frame: 7-14 days

Potential pitfalls: Poor planning of the workflow can either lead to conflicts when contractors’ schedules clash or delays when no work is being done; delays can be caused by problems with the utility company installing its equipment.

Itemized home system rough-in average costs:

  • Electrical mast, hookup, panel, and wiring: $5.32/sq. ft.
  • Plumbing rough-in: $5.68/sq. ft.
  • HVAC – Heating, air conditioning and ductwork average total cost: $14,111

Interior Finishes

  • Average total cost: $75,259
  • Cost range: $21.75 to $44.75/sq. ft.
  • Average cost: $29.01/sq. ft.
  • Share of total home construction cost: 25.4%

Overview: The quality of materials used is the major factor in the total cost.

Time frame: 14-35 days

Potential pitfalls: Once home construction has started, this is the area most prone to delays through material shortages, materials or appliances damaged during shipping, poor scheduling of the contractors or contractors being behind on other jobs, the homeowner wanting last-minute changes and delays in the bank clearing loan money to pay contractors.

Itemized home finished system costs based on the national average size of 2,594-sq. ft. for new single-family homes:

  • Insulation: $2.00/sq. ft.
  • Drywall: $4.10/sq. ft.
  • Painting: $3.18/sq. ft.
  • Flooring: $4.63/sq. ft.
  • Doors and trim: $4.09/sq. ft.
  • Appliances: $4,710
  • Light fixtures and covers: $3,437
  • Plumbing fixtures: $4,108
  • Fireplace: $1,867
  • Cabinets and countertops: $13,540
  • Other: $923

Cost of Final Construction Steps

  • Average total cost: $20,116
  • Share of total home cost: 6.8%

Overview: These steps add the finishing touches to your home, and some are optional.

The type of driveway – gravel ($), asphalt ($$), concrete ($$$) or paver ($$$$), how much landscaping is done and whether any exterior structures are added are the major cost factors.

With the exception of the final cleanup of the interior, these are exterior projects and don’t affect the homeowner’s ability to move into the home. They are often delayed by months until weather permits.

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Time frame: 7-21 days, weather permitting.

Potential pitfalls: Bad weather, contractor delays, wrong season for planting or installing a driveway.

Itemized final home construction costs:

  • Final grading and landscaping: $6,255
  • Driveway: $6,674
  • Deck, patio, or gazebo: $3,547
  • Construction cleanup and waste disposal: $2,988
  • Other: $402

All Other Construction-related Costs

  • Other: $11,156
  • Share of total home construction cost: 3.8%

Total Home Construction Cost

Now, let’s add up the total costs and consider the cost per square foot based on the 2018/2019 costs for an average-sized single-family home 2,594 square feet:

NAHB Stats: The average contract price of $296,652. Thus, we can derive the average cost per square foot:

  • Average total home construction cost: $296,652 (not including the cost of the land, lot finishing, and marketing and sales costs)
  • Average cost to build per square foot: $114.36

Conclusion:

Home construction cost per square foot has risen from about $80/sq. ft. in 2011 to $95/sq. ft. in 2013 to today’s figure of $114.36, per the National Association of Home Builders, the industry’s leading professional association.

The NAHB also reports that the size of new homes has generally been rising over the last decade while lot sizes are shrinking!

If you’d like to share your costs for any phase of your building project, other readers will benefit from your experience.

Please share the information and the scope of the project! And if this home construction cost guide has been helpful, perhaps your friends and followers would benefit if you passed it on to them. 😉

Note:

24hplans has team of highly trained professional architects and drafters who can prepare any kind of site plan in the shortest amount of time possible, so that you can easily obtain that building permit and get on with your project. Use the promotion code: 24hplans-20off to get a 20% discount off any package. — Please note this is a limited time offer, exclusive to the readers of our blog. This offer is not being advertised anywhere else.

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FAQs

What costs the most when building a new house? ›

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What are on costs in construction? ›

'On-costs' is not a clearly defined term. The dictionary definition is another word for overheads, with 'overheads' defined as expenses 'incurred in the upkeep or running of a business' (OED). If this applied to construction projects as 'expenses incurred in running the project' it is probably correct, but not very...

Is building your own house cheaper? ›

Building your own home can be much cheaper than buying an existing house. If you do the work yourself, you can lower costs by up to 40%. But even hiring builders to do most of the work can save money, while project managing the build can also significantly cut costs.

How long should it take to build a house? ›

Length Of Time

On average it can take approximately 6 months to complete the build of a house. However, it can be as little as 4 months or potentially more than 12 months. For a pre-designed house, you are looking at roughly 4-6 months, while custom designs can take longer at an expected 10-16 months.

Will construction costs go down in 2022? ›

Going into 2022, we expect to see more positive shifts. The cost of construction is forecasted to decrease and stabilize with continued economic growth and the relief of supply chain halts. And with building materials easier to source, we predict a boom in new home builds.

How can I save money on a new build? ›

Value Engineering
  1. Reducing Square Footage. One way to dramatically reduce costs is to just reduce the square footage of the entire home. ...
  2. Choosing a Stock Design. ...
  3. Reducing Lineal Feet of Logs. ...
  4. Opt for a Simple Roof System. ...
  5. Use Drywall on Interior. ...
  6. More Modest Kitchen. ...
  7. Don't Take a Bath on Your Bath. ...
  8. Avoid Change Orders.

Will construction costs go up in 2022? ›

The world's largest real estate company, Coldwell Banker Richard Ellis (CBRE), has predicted a 14.1% year-on-year increase in US construction costs by the close of 2022, citing financial pressures such as inflation, labour shortages, supply chain challenges, Covid-19 and Russia's invasion of Ukraine.

How do I estimate building costs? ›

Cost of construction = area of plot x construction rate per sq ft. To arrive at the construction rate per square foot, you must include the following: Construction material: Cement, steel, sand, gravel, finishing, color, tiles, bricks, fittings, windows, doors, plumbing, sanitary, and electrical.

What are the 4 types of cost? ›

Costs are broadly classified into four types: fixed cost, variable cost, direct cost, and indirect cost.

Should I build a house now or wait until 2022? ›

Our outlook continues to be that if you are ready and able to build then now is the best time to do it. It is anticipated that interest rates will be on a rising trend throughout 2022 and costs will continue to increase, although the cost increases will be at a more normalized rate.

What is the cheapest type of house to build? ›

Ranch Homes

A home with a simple and concise layout is the cheapest type of house to build. Ranch homes are typically single-story structures with attached garages. They're easy to find construction plans for and highly customizable, so you can find a home that fits your needs and budget.

What are the disadvantages of building a house? ›

Cons
  • You may end up spending a lot more than you anticipated. ...
  • You can't move in right away. ...
  • You will likely have a lot more yard work to do (or costs for a landscaping service). ...
  • You may have out-of-pocket expenses sneak up on you. ...
  • You will have less room to negotiate when it comes to closing costs or purchase price.
2 Oct 2018

What are the 5 stages of building a house? ›

6 Major Phases of the Home Building Process
  • Home Building Phase #1: Plans and Permitting. ...
  • Home Building Phase #2: The Site Work and Masonry Phase. ...
  • Home Building Phase #3: Framing. ...
  • Home Building Phase #4: Plumbing, Electric & More. ...
  • Home Building Phase #5: Insulation, Drywall & Flooring.
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What are the stages of a new build? ›

Some of the key phrases and stages of construction of your new home are briefly explained here.
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  • Superstructure. ...
  • First Fix. ...
  • Second Fix. ...
  • Decoration. ...
  • Finals. ...
  • External Works. ...
  • Familiarisation Visit.

What do I need to know about building a house with a builder? ›

Top 10 Tips for Having Your Home Built By a Builder
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  • Budget more than you expect. ...
  • Pick the right builder. ...
  • Understand your agreement. ...
  • Know what you're entitled to. ...
  • Get your financing in order. ...
  • Communicate constantly. ...
  • Look for ways to save.

Are lumber prices expected to drop in 2022? ›

As a result of this and other factors, Fastmarkets RISI predicts U.S. softwood lumber consumption will drop 1.4% year over year in 2022. But Jalbert noted in a July research report that this is still a “modest” drop by historical standards, and that it's too soon to call a recession in the lumber market.

Are building materials going down in 2022? ›

In July 2022, the year-over-year change in materials and components for construction, excluding capital investment, labor, and imports was 14.8%. The growth rate of increase had dropped, but that has changed. The August figures show that combined materials and components in construction were up 15.2% year over year.

Are lumber prices expected to drop? ›

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What are the hidden costs of building a house? ›

In this post, we covered seven unexpected expenses to consider when building a house. These unexpected expenses include land, builder fees, moving expenses, closing costs, and the fun stuff … window coverings, landscaping, and furniture/decor!

Where do you splurge when building a house? ›

6 Areas to Splurge When Building Your Custom Home
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  4. Electric Outlet Placement. ...
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  6. The Mud Room.
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Is now a good time to build a house? ›

The Housing Industry Association's latest outlook report says that new home sales have been the strongest since 2017, with construction beginning on over 115,000 detached homes since the HomeBuilder grant finished in March 2021. Forecasts suggest that we'll see a similarly strong trend continue throughout 2022.

Will concrete prices go down in 2022? ›

Linesight's latest Quarterly Construction Materials Costs report shows that higher prices seen in 2021 are set to continue throughout 2022.

Will construction materials go down in 2023? ›

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Does construction cost include materials? ›

Construction Cost means and includes the cost of the entire construction of the Project, including all supervision, materials, supplies, labor, tools, equipment, transportation and/or other facilities furnished, used or consumed, without deduction on account of penalties, liquidated damages or other amounts withheld ...

How much does it cost to build a house in 2400 sq ft? ›

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How do I calculate the cost of materials to build a house? ›

It's easy to figure out – simply take the total amount of square feet that were measured for the project, then divide the total amount of square feet by the coverage rate of the material.

What are the main costs? ›

The two basic types of costs incurred by businesses are fixed and variable. Fixed costs do not vary with output, while variable costs do. Fixed costs are sometimes called overhead costs. They are incurred whether a firm manufactures 100 widgets or 1,000 widgets.

What are the main 3 types of cost? ›

These expenses include:
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  • Fixed costs: Fixed costs are expenses that don't change despite the level of production. ...
  • Direct costs: These costs are directly related to manufacturing a product.

What is a cost sheet? ›

A cost sheet is a formal documentation of the fixed, variable, direct, and indirect costs a business incurs from start to finish in its production process. Based on this information, a company can determine the total production cost and fix the price per item for the commodities.

How much does it cost to build a house UK 2022? ›

Building costs in the UK start from £1,750 per square metre. And, In 2022, a cost estimation for a house is anywhere between £1,750 and £3,000 per m2.

How much does it cost to build a 3 bedroom house UK? ›

Average cost of building a 3 bedroom house

The typical size of a three-bedroom home can range from around 90 square metres to 120 square metres, meaning the cost of building a three-bedroom house can range from around £126,000 to £300,000 with an average cost of around £213,000.

How does it cost to build a house? ›

New home constructions typically cost $100 – $200 per square foot to build. However, the average cost to build a new home shifts upward of $500 per square foot for more luxurious accommodations, like a walk-in closet or energy-efficient features.

How much does it cost to build a 3 bedroom house in Kenya? ›

The cost of building a 3 bedroom house in Kenya is 2.5 million shillings on average.

How much can you save building your own house? ›

Some of you asking the question, “How much can I save building my own house”, are referring to the actual savings from doing the physical labor yourself. If you performed all of the labor to build the average home of today, you would save about fifty percent off of the cost to build.

How much can you borrow for a self build mortgage? ›

Self-build Mortgage

Borrow up to 80% of the property's value on a repayment basis, or up to 65% interest-only (or part repayment and part interest-only).

Can you build a house for 100k UK? ›

With some clever design and project management, it is possible to build an inexpensive house for under £100k. Homebuilding and Renovating magazine have compiled a pinterest board with some great examples of what can be achieved when planning a budget self build home.

How much does it cost to wire a new build house UK? ›

For a two-bed flat, the cost is on average between £3,800 - £5,800. The average cost to rewire a 3-bedroom house is in the region of £4,450 - £8,000. Depending on the size and layout of the property, it should take 6-10 days to carry out the rewiring work.

How much does it cost to build a 2 bed bungalow? ›

It costs around £1,500 to £3,000 a square metre to build a bungalow. To calculate the likely cost of your project, including any extra bedrooms, work out your ideal bungalow size in square metres.

How much does it cost to build a house from scratch UK? ›

On average, building a new house costs between £1,800 and £3,000 per square metre. A two-bed house is estimated to cost between £190,000 to £280,000 to build. A three-bed house is estimated to cost between £245,000 to £365,000. A four-bed house is estimated to cost between £295,000 to £440,000 to build.

Is 2022 a good year to build a house? ›

Yes 2022 can still be a good time to build your custom forever home, despite rising costs and interest rates. Building your custom home is an investment in your family's lifestyle and should be looked at as a long term financial & lifestyle decision of living in your forever home for 5 or more years.

Should I build a house now or wait until 2022? ›

Barring any unforeseen calamities, 2022 could be a good year for homebuilders and buyers. However, the effects of inflation, new COVID variants, or other market disruptions could change everything.

Will lumber prices go down in 2022? ›

May 2022 some building material prices going down.

Framing lumber and construction lumber have dropped dramatically in price over the last few weeks. By historical numbers, lumber still remains high. Treated lumber prices are also dropping.

How much land do you need to build a 4 bedroom house? ›

Typically, a four-bedroom home can be built on a tenth of an acre, but if you want plenty of outdoor space you should aim for a third or even half an acre.

How many iron sheets do I need for a 3 bedroom house? ›

Estimate 60- 69 roof sheets to roof a 3 bedroom house depending on the medium house size.

How much can a 3 bedroom house cost to build? ›

The average cost of building a 3-bedroom house covering an area of 146 square metres is slightly under R2 million.

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