How to Build a House: Your Complete Guide to the Home-Building Process

Building your own home can help turn your dream home into a reality, but the process can be overwhelming. Whether you’re planning to DIY from the foundation to the rafters or you’re bringing in professionals to handle the heavy lifting, knowing how to build a house can help you keep on track from breaking ground to the finishing touches. Learn what goes into building your own home and what to expect during the process. 

Building vs. Buying a Home

Building a new home vs. buying an existing one can be a big decision. In many cases, building is the best way to get a home that’s exactly what you’re looking for, but of course, the process is much more involved than buying a home that’s already on the market. The time it takes to build a house is significantly longer than buying one, and whether you’re swinging the hammer yourself or hiring out the labor, it’s a complicated, multi-stage process that requires a lot of management. 

How Much Does It Cost to Build a New Home?

The cost to build a new home can range anywhere from $8,000 to more than $820,000. It depends on the location, size, features, and materials. That being said, most people spend between $123,000 to $451,000.

Prepping to Build a House

Before you even get started, take some time to figure out if a build is the right choice for you. Using this guide as an outline, put together a list of the steps you’ll need to take, your budget, your timeline, and any other considerations you should consider. Decide if you can commit to the time, money, and energy this project will require. The better organized you are from the beginning, the smoother your project will run.

How to Build Your Own House Step-by-Step

When you’re ready to begin the home-building process, doing all the necessary steps in the right order from start to finish will help keep the project on track and ensure that building your dream home doesn’t become a nightmare. With careful planning, the right team on board, and always watching what’s next, you’ll be moved in and enjoying your new home before you know it.

Plan Your Home 

You’ll need to do some significant planning before building a house—and everyone needs to start somewhere. Before you break ground, decide on a location, design, and contractor. 

Find and Purchase Your Land or Lot

Finding the perfect lot is important. This is your forever home, so you must ensure the land is suitable. Nobody wants to start building only to find an unexpected cost because the land isn’t stable or the weather gets in the way. Consider the following:

Size 

The average single-family home is around 1,600 square feet, but you might want something larger or smaller. Determine how much land you need to buy—and don’t forget to think about the entire property. Are you looking for multiple acres, or do you just want enough space for a small garden? 

Zoning

Before making an offer, ensure your land is zoned correctly and has access to your desired utilities and community institutions, like schools and libraries. Once you start getting into a rural area, you may have to provide your own water source (like a well) and waste disposal (like a septic tank). Check with the local authority or homeowners association (HOA) for potential restrictions or pitfalls, such as ordinances restricting owners from building on a percentage of land. It’s also a good idea to add the cost of a land survey to your budget, so you know exactly what’s your property and what’s not.

Climate

Climate dictates the cost of your foundation, the type of insulation you’ll need, and other weather-related considerations. You may need to ensure your home can withstand floods, hurricanes, tropical storms, unstable ground, tornadoes, earthquakes, intense heat, or intense cold. 

Property Taxes

Property taxes vary from state to state and city to city, but they’re a significant factor in the long-term costs of your home. Ask your real estate agent before buying to ensure you have the budget.

Design Your Home

You can’t build a house without a design, and the design more or less determines your budget. The cost to build a house is anywhere from $100 to $500 per square foot—so the bigger your home is, the more you’ll pay. Whether you learn how to design a house or hire an architect to plan the design, you should know a few things before getting started.

Hire an Architect

A local architect can help you design a home with safety, functionality, and building codes in mind. While the cost of an architect may seem like an unnecessary burden on your budget, it’s actually a tremendous way to protect your investment. You’ll avoid design errors that cause costly (and potentially hazardous) issues later on.

Decide the Number of Rooms 

Most homes have at least one bedroom, one full bathroom, a kitchen, and a living space—but that’s just a starting point. You can add more bedrooms and bathrooms to suit your family. You may even want additional living areas, like a playroom, home theater, or formal dining room.

Choose Your Desired House Style

There is a wide variety of house styles to choose from, and knowing what style you’re looking to build can help you find an architect that’s the right match for you and help you narrow down design choices later in the process.

Consider Utilities and Function

Sometimes, underground utility pipes can get in the way of your dream design, and things like central air conditioning and bathrooms will take special consideration. Beyond that, focusing on function makes your home more liveable. For example, is there a space that’s too small for a typical bedroom but could easily become a luxe walk-in closet? Make sure the design suits your lifestyle.

Include Energy-Efficient Designs

Even modest energy improvements can save you more than $500 a year, according to the U.S. Department of Energy. Consider using energy-efficient design elements like advanced house framing or installing a passive solar heating and cooling system.

Choose a Home Builder or Contractor 

Labor makes up about 40% of the cost to build a house yourself—but budget isn’t always best. You want to make sure you hire the right team. How do you choose? Let’s get into it.

Custom Home Builder vs. General Contractor

A contractor oversees the whole home-building process, whereas a home builder just builds the house. If you hire a licensed home builder, they won’t have the qualifications to do specialized tasks like plumbing and electrical work, so you’ll need to bring more people on board. If you hire a general contractor, they can subcontract an entire team of qualified professionals.

Hiring Your Team

You’ll need to hire licensed professionals who can tackle everything from roofing, flooring, and foundations to masonry, cabinetry, grading, electrical, and plumbing. Always check their  qualifications and make sure they provide the required paperwork—even if they’re subcontractors hired by your general contractor. Knowing what questions to ask a builder can ensure you have the right team on board.

Get the Required Permits

Forgetting a permit is one of the biggest mistakes to avoid when building a house—and home building requires a ton of permits. Building permits generally cost between $10 to $2,300, but you’ll need a few different types of permits obtained by licensed contractors. In many areas, many of the following permits will be included in the construction permit for the home build, but in some cases, you’ll need to acquire them separately. Your contractor will be able to advise you as to what you’ll need.

Prep the Construction Site

One of the first steps of building a home is preparing the construction site. Your excavation crew will level the area and make sure it’s free of rocks, trees, and other debris. They’ll also:

1. Stake the corners of your foundation. These stakes are known as building lines.

2. Put up wooden forms, which act as a guide for your foundation, and hold poured concrete in place

3. Dig the trench for the foundation unless your home is slab-on-grade

Lay Down Your Foundation

Once the area is prepped, it’s time to lay the foundation. During the foundation-making process, your contractor will:

1. Install footings: This is the ground support for your home. Your contractor will typically make your footings out of concrete and rebar.

2. Pour the foundation walls: If you have a basement, your contractor will build the foundation walls using poured concrete. 

3. Pour the slab: If you have a slab-on-grade home, your construction crew will level the space over your footings, install electrical and plumbing chases, and pour the concrete slab.

4. Install the plumbing and waterproofing: Once the concrete foundation fully cures, your crew will install a waterproofing membrane and whatever plumbing lines you need for the first floor or basement. This includes drains, water taps, and your sewer system.

5. Backfill the foundation: Your construction crew will fill the hole surrounding your foundation’s outer walls.

As soon as your foundation is complete. This ensures that everything is installed correctly and up to code. If you don’t need to make adjustments, your contractor will remove the wooden forms and start building the frame of your home.

Build the Frame of Your House 

Every home starts with a rough frame, which acts as the skeleton of your house. The essential elements include:

• Wall lines: The wooden supports behind your walls, including load-bearing beams.

• Roof trusses: This is the frame of your roof, which includes rafters and ceiling joists.

• Floor system: Unlike concrete slab, off-grade and above-grade floors use wooden flooring piers and a floor joist framing system. 

• Sheathing: This holds your exterior walls and roof in place. 

• Protective barriers: Your contractor will wrap your sheathing in a plastic barrier that protects your home from mold, moisture, and wood rot. They may also install roofing felt for the same purpose.

After installation, a framing inspection will ensure your home’s frame complies with building codes.

Install Your Exterior Siding and Roofing

Once your frame is built, you’ll finish your home from the outside in. Install your exterior siding (aluminum, wood, vinyl, or another material) and roof (metal panels, shingles, or tiles). At this phase, you can also install your windows and doors.

Install Plumbing, Electrical, and HVAC

Before you can finish your floors, ceilings, and walls, you’ll need to install plumbing and electricity. Plumbing typically comes first. At this phase, your plumbing and electrical contractors will install:

• Pipes for plumbing

• Water supply lines

• Bathtubs and showers

• Breaker panels

• Ductwork and HVAC vents

• Electrical wiring

• Receptacles for outlets, switches, and lights

After installation, you’ll need to have these elements inspected to make sure they comply with building codes.

Install Insulation

Insulation can account for around 30% of a home's heating and cooling costs—so it’s an important next step. Your contractor will likely install one or more of a commonly used insulation material in your walls, floors, and ceiling:

• Cellulose: Made of recycled newsprint or denim mixed with a bonding agent, cellulose can be installed as a loose-fill on the attic floor or as a blown-in material.

• Fiberglass: You can install fiberglass insulation in your wall cavities or between joists, beams, and studs. 

• Spray foam: Spray foam insulation seals gaps and cavities inside existing walls.

• Foam boards: Foam board insulation (rigid panels) is great for insulating almost any part of your home, from the roof, floors, or foundation.

• Mineral wool: Mineral wool insulation is similar to fiberglass material but more expensive. It can tolerate higher temperatures and has soundproof properties as well. 

• Reflective barrier: While standard insulation materials reduce heat flow in a home, reflective insulation reflects the heat away from the house and prevents heat gain. 

Install Drywall, Interior Fixtures, and Finishes

Once the insulation is installed, you can finish your home’s interior. This includes:

Walls:

Complete your walls by hanging drywall, sealing around interior doors and window frames, hanging interior doors, adding interior trim, finishing ceilings, and painting or applying wallpaper.

Floors

Since you won’t want to walk on floor joists or a slab, finish your floors by installing the necessary subflooring and flooring, including hardwoods, vinyl, tile, and carpeting.

Storage and Workspace

Next, install bathroom vanities, cabinets, kitchen cabinets, countertops, and appliances.

Fixtures

Now’s the time to install light fixtures, switches, and bathroom fixtures like faucets, showerheads, mirrors, and toilets.

Complete Exterior Finishes

Your contractor will complete your home by adding final exterior finishes. This could include stucco, masonry, bricks, or paint. You’ll also want to add the last of your exterior accessories, like gutters, light fixtures, and shutters.

Add Hardscaping and Landscaping

Many first-time home builders overlook the need for landscaping and hardscaping—but there’s a massive value in adding a little more than just grass. Great landscaping creates curb appeal, while strategic hardscaping transforms your outdoor space into a secondary living space. You may want to hire a landscape designer near you to help plan your yard. At the very least, you should:

• Complete exterior grading (which prevents basement flooding)

• Install walkways and driveways

• Add grass, mulch, and shrubs

Add the Finishing Touches

Your home might look move-in ready—but don’t pack your bags just yet. Before your new home is considered complete, you must walk through some red tape.

Complete Your Final Inspection

It’s time for your fifth and final inspection. A building code official will inspect your home and issue a certificate of occupancy, meaning it’s legal to move in. If they find an issue, you’ll need to fix it and have a subsequent inspection before getting your certificate.

Complete a Final Walkthrough with Your Contractor

Before you move in, your contractor will give you a final walkthrough of your home. During this process, they’ll explain the different features, outline the required maintenance, and discuss any warranties. You should also inspect the quality of their work. It’s easier to have your contractor fix an issue before you give them the thumbs up than later down the line.

Tips for Building Your Own Home

While, ideally, everything will proceed according to plan, there are some ways to help ensure your project is successfully completed. Some tips for building your home include: 

• Understand your budget and what every line item entails.

• Make a plan for going over budget since it’s almost guaranteed.

• Plan not just for what you need in a home now but what you’ll need in the future.

• Be aware of local restrictions and HOA regulations. 

DIY vs. Hiring a Pro to Build a Home

Most homeowners don’t have the technical know-how or the heavy-duty equipment required to build their own home from scratch, so hiring a local custom home builder will be the best course of action for most people. A pro will also know your area’s codes, regulations, permit requirements, and more, ensuring your home meets all requirements.

It’s certainly possible to build your own home yourself, particularly if you have experience doing so and the tools and equipment to accomplish it, but make sure you’re fully aware of all the steps and necessities to ensure the final result is the home you’ve so carefully planned.