How Much Does It Cost to Build a House? [2025 Data]

Average Cost to Build a House

Building a house costs $323,026 on average, and most homeowners spend between $138,937 and $531,294. That said, a luxury home in a major metropolitan area might set you back as much as $950,000. 

The square footage of your home, including the number of bedrooms, will influence the final price. Other important cost factors include the type of house, your location, labor rates, material quality, and more.

Cost to Build a House by Size

The cost to build a custom home can range from $100 to $500 per square foot, with an average price of $150 per square foot. Naturally, larger homes require more labor and materials, and this will be reflected in higher prices. Here’s how your home size might affect building costs: 

Home Building Cost by Number of Bedrooms

When building a home, each additional bedroom adds $20,000 to $80,000 or more to the total construction cost. The price is determined by the additional square footage for the bedroom, as well as larger living spaces, extra bathrooms, and expanded utility systems to accommodate more occupants. 

Here are estimated new home construction costs based on the number of bedrooms, assuming a price of $150 per square foot:

How Much Does Labor Cost?

Labor will comprise between 30% and 50% of the total cost when building a custom home. You’ll need to hire multiple pros, including general contractors, construction managers, structural engineers, architects, and more. The exact breakdown depends on the scope and complexity of your project.

Here’s how much each pro will cost, on average, to build a new home:

• General contractor costs: $32,000–$64,000 (10% to 20% of the total construction cost)

• Construction manager costs: $16,000–$48,000 (5% to 15% of the total project cost)

• Architect costs: $16,000–$48,000 (5% to 15% of the total project cost)

• Structural engineer costs: $2,000–$8,500 

• Draftsperson costs: $75–$125 per hour

• Foundation contractor costs: $4,000–$14,800

• House framer costs: $1,400–$7,700

• Plumber costs: $45–$200 per hour

• Electrician costs: $50–$100 per hour

• HVAC technician costs: $5,000–$12,500

• Roofer costs: $5,900–$13,200

Home Building Cost by Location

Building a home is more expensive in areas with higher costs of living, such as New York ($395,000) and California ($458,000). It’s more affordable in lower-cost states like Georgia ($291,000), especially in rural or suburban areas. These regional differences are driven by land values, labor rates, and the cost of construction materials.

Here’s a breakdown of estimated home building costs by location, based on data compiled by Angi:

Additional Cost Factors

While the average cost to build a home is $323,026, it’s dependent on several additional factors. These include lot prices in your area, design fees, permits and inspections, interior and exterior finishes, and other associated costs. Some homeowners also need to connect their new home to utilities, which further increases their bill. 

On average, here’s what you might pay for additional costs when building a home: 

• Land: $3,000–$150,000 and beyond

• Installing a sewer line: $1,400–$5,800

• Running an electrical line to your new home: $4,000–$20,000

• Design fees: $500–$5,000 for stock design options, or $5,000–$20,000 for custom plans 

• Construction building permits: $500–$2,000

• New construction inspection: $300–$400

• Land excavation: $1,500–$10,000 

• Land grading: $1,000–$3,300 

• Land surveying: $1,800–$6,500 

• Land clearing: $1,400–$6,200 

• Building a foundation:  $4,000–$14,800

• Framing your house: $20,000–$50,000

• Interior finishes: $50,000–$175,000

• Exterior finishes: $25,000–$60,000

• Temporary off-site living expenses: $8,600–$11,900

• Site cleanup: $0.10–$0.50 per square foot

• Premium materials: 25%–100% more than standard or builder-grade options

DIY vs. Hiring a Pro to Build a House

Although building a house yourself can save 30% to 50% of your project costs by cutting labor expenses, hiring a custom homebuilder near you is often the best option. That’s because construction requires significant experience and training.

Here’s why DIY homebuilding might be difficult:

• Inspections and permits: Your home must pass inspection and comply with local safety and zoning codes.

• Licensed work required: Most municipalities require licensed professionals to handle critical systems, such as plumbing and electrical, before issuing a certificate of occupancy. 

• Safety concerns: Attempting major construction tasks can be extremely dangerous.

If you want to participate in the process and save money where you can, focus on smaller tasks instead, such as the following:

• Installing floor tiles: $400–$4,250

• Hanging drywall: $1,000–$3,200

• Painting walls and ceilings: $970–$3,100

• Installing appliances like a dishwasher: $123–$299 per appliance 

• Hanging light fixtures: $160–$1,000

• Caulking: $100–$300

• Driveway sealing: $280–$860

Home Renovation vs. New Home Build

Renovating a house is often more affordable than building a new house:

• Average cost of a full home renovation: $52,000 (up to $90,000+ depending on scope)

• Average new custom home cost: $323,026, not including demo

You might renovate a home if you desire the following: 

• New floors, kitchen, or bathrooms

• Small floor plan changes

• Lower initial cost compared to building new (though extensive renovations can sometimes approach new-build costs)

• Increased resale value without starting from scratch

• No relocation from your current location or lot

On the other hand, if you desire the following factors, building a new home might be the better option:

• Complete design freedom

• A new floor plan without limitations from your existing structural walls, foundation, and lot size 

• A basement, especially if your existing home has a slab foundation

• Relocation from a house that’s in poor condition (for example, it has major foundation issues or extensive mold)

• Maximum energy efficiency with modern systems and materials

• Fewer unexpected surprises, like asbestos or outdated wiring hidden behind walls

Home renovations often cost less than new builds, but they’re most effective when preserving a home’s existing structure. If you’re unsure, consult a general contractor to compare feasibility and costs.

How to Cut Home Building Costs

How do you keep homebuilding costs under control as you launch into this endeavor? Here are a few ways to save: 

1. Choose a plot of land attached to utilities and the local sewer system. This alone will save you between $6,500 and $30,000 on the cost of setting up utilities.

2. Know who to hire to build your home. Hiring a skilled local contractor might save you 5% to 20% of the total home construction cost. Those savings come from accessing trade discounts, avoiding costly mistakes and delays, and leveraging local knowledge about permits, materials, and trusted subcontractors.

3. Set a firm budget before meeting with your contractor, but leave a 5% to 10% buffer for unforeseen changes and potential delays.

4. Consider building up instead of out to lower costs. Adding a second story costs about 10% to 30% less per square foot compared to building a larger single-story home with a wider foundation. By building up, you can add more square footage at a fraction of the cost.

5. Opt for stock design plans over custom plans. Not only will your general contractor be more familiar with the cost of materials, but you will also significantly reduce costs—often by 10% to 25%.

Common Pitfalls to Avoid

The homebuilding process can be daunting. Hiring a general contractor is one of the most important ways to avoid the top mistakes when building a home. You can also steer clear of the following pitfalls:

• Don’t rush into decisions: Take your time when selecting the right location, contractor, and building team. Speak with at least three contractors who are highly rated and recommended.

• Don’t go overboard with DIY: A project leader should guide your ideas toward the most budget-friendly and stylish options, and they’ll also save you time and frustration. Feel free to DIY what you can, but don’t overdo it.

• Don’t be too hands-off: While you don’t want to do too much, ensure you’re involved throughout the process. Keep a consistent communication schedule with your contractor, and always read contracts before signing. 

• Don’t underestimate time and money: Plan for delays in the timeline to build a custom home. You’ll most likely encounter time-consuming, unexpected issues along the way. It’s essential to set aside some money for these expenses.