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How Much Does It Cost to Build a House in Phoenix, AZ? [2025 Data]
Normal Range: $161,976 - $741,275
The average cost to build a house in Phoenix, AZ is $451,625, and most projects total between $161,976 and $741,275. A pro will factor in location, material quality, home size, and more.
How we get this data
Amy Walters / Adobe Stock Photography
Amy Walters / Adobe Stock Photography
Cost Insights
In keeping with a local cost of living that's slightly above the national average, the cost to build a new home in Phoenix is also higher than the national average.
One factor driving up the cost of materials to build a new home in Phoenix is the city's combined state and local sales tax, which is just above 9%.
While a new construction project in Phoenix requires hiring a contractor licensed through the city, owner-built homes are exempt from this requirement.
For buyers looking to break ground on a new construction, the average cost to build a house in Phoenix is around $451,625. With factors like home size and special finishes in the mix, homeowners can expect to pay anywhere between $161,976 and $741,275 to get a home built. When designing your new home, your builder will provide you with options that help you fit within a specific budget per square foot. Keep reading to learn more about the cost factors that go into getting a home built in Phoenix, AZ.
Home Building Cost Factors
When you work with your builder to talk about costs, your chosen home size and the quality of materials you pick for building and finishing your home will matter. While some details are negotiable with new builds, your builder will make recommendations regarding architectural choices and materials that are ideal for Phoenix's desert climate.
Square Footage
The cost to build a custom home can range anywhere from $100 to $500 per square foot, with the average sitting right around $150 per square foot. The higher end of this range accounts for building luxury homes or homes in large cities. The size and type of house you choose will also affect what you’ll pay.
| Square Footage | Price per Sq. Ft. | Average Cost |
|---|---|---|
| 1,000 | $200–$525 | $200,000–$525,000 |
| 1,500 | $200–$525 | $300,000–$787,500 |
| 2,000 | $200–$525 | $400,000–$1,050,000 |
| 2,500 | $200–$525 | $500,000–$1,312,500 |
| 3,000 | $200–$525 | $600,000–$1,575,000 |
| 3,500 | $200–$525 | $700,000–$1,837,500 |
Number of Bedrooms
It’s helpful to have an idea of the total construction cost based on the number of bedrooms, since that will likely be the first thing you decide. You can expect to pay $100,000 to $120,000 per bedroom. Note that the added cost comes from not only the additional square footage for the bedroom but also larger living spaces, additional bathrooms, and utilities to support additional occupants. The average home in the U.S. today is 2,200 to 2,500 square feet and has three bedrooms.
Here are the new construction home costs based on the number of bedrooms at the average price of $150 per square foot.
| # of Bedrooms | Average Cost |
|---|---|
| 2 | $130,000–$235,000 |
| 3 | $155,000–$260,000 |
| 4 | $275,000–$400,000 |
| 5 | $425,000–$500,000 |
Foundation Type
The cost of your foundation will come down to where you live, the soil conditions, and the type of foundation that’s best for your home.
Unless you’re well-versed in construction, you’ll probably want to lean on a structural engineer to help you determine the correct foundation type and inspect the foundation after its completion.
| Foundation Type | Cost per Sq. Ft. | Pros | Cons |
|---|---|---|---|
| Slab-on-grade | $7–$17 | Pest-resistant, moisture-resistant, affordable | Restricts access to piping for repairs |
| Pier-on-beam | $9–$15 | Provides access to pipes | Risks for settling and wood rot |
| Crawl space | $5–$11 | Creates buffer between home and ground | Can trap moisture and invite pests |
Exterior Finishes
Exterior finishes, from the siding to the shingles on your roof, will account for $25,000 to $60,000 of your overall home-building costs. You and your team will have a lot of decisions to make depending on the exterior style you’re going for and the best options for your local climate, among other factors. Things like high-end roofing materials and gutters will increase your cost but also provide a greater ROI.
| Exterior Finish | Average Cost per Sq. Ft. |
|---|---|
| Roofing | $7–$14 |
| Siding | $4–$33 |
| Stucco | $6–$12 |
| Gutters | $5–$41 |
| Exterior trim | $11–$25 |
Interior Finishes
Moving on to the interior work of your home is an exciting phase. This stage is the moment to determine the flooring, the paint colors, and all appliances and home systems that make your house a home. Assume you'll pay between $50,000 and $175,000 for all interior finishes.
The higher cost range accounts for more complex and sought-after materials. These include everything from insulation with higher R-values to beautiful marble countertops. Nearly every category, however, offers options for all budget preferences.
| Interior Finish | Average Cost per Sq. Ft. |
|---|---|
| Countertops | $8–$190 |
| Painting | $3–$7 |
| Flooring | $4–$222 |
| Interior doors | $71–$440 each |
| Interior trim | $1–$1.50 per linear foot |
Home Building Pro Costs
When you hire a qualified custom home builder in Phoenix, they'll work with you from the very first step to ensure compliance with all local environmental and zoning laws. While builders in Phoenix generally charge by square foot, costs don't just account for the materials and labor needed to build your home. Builders generally build costs for permits, taxes, licensing, and insurance into the rate per square foot. With builders acting as general contractors, they also work as the "middleman" for paying subcontractors like plumbers, electricians, foundational experts, and landscapers to complete different parts of the house throughout the project.
Permits
Failing to obtain all permits before beginning work is one of the big mistakes to avoid when building a new house. In Phoenix, builders are required to submit plan reviews in order to begin the permitting process for new residential construction. Your builder will work directly with the City of Phoenix Planning and Development Department to schedule an appointment for a plan review. In total, permits covering plan review, plumbing, electrical, septic, and inspections can cost between $1,700 and $3,636. If you're adding a pool with your new construction, expect the permit to cost between $70 and $200 for the application, permit, and inspection.
Taxes
Phoenix's higher-than-average combined local and state sales tax rate is a factor that drives up building costs for residents. Your builder will pass on the cost to cover sales tax for all materials needed to build your home to you. Purchases made for building materials in Phoenix are subject to an Arizona state sales tax of 5.6%,
Maricopa County's tax rate is 0.7%, and Phoenix's tax rate is 2.8%, for a combined rate of 9.1%.
Licensing, Certification, and Insurance
Aside from owner-built new construction, all residential new constructions must be performed by licensed contractors in Phoenix. All contractors must become certified and licensed through the Arizona Registrar of Contractors (ROC), a process that involves passing a licensing test and paying fees totaling between $200 and $700. Contractors must also carry insurance and bonding for a total cost that can range from $175 to $400 per month, based on the number of employees they have.
Is Building a New House Worth It?
Phoenix's housing shortage makes building your own home an attractive option, whether a homeowner intends to stay in a new build for the long term or sell in the future. In addition to the potential for resale, building your own custom home in Phoenix ensures that you can select the layout and finishes you want.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We survey real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
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