How Much Does It Cost to Build a House in Chicago, IL? [2025 Data]

The cost to build a house in Chicago averages around $410,285, with most projects falling between $206,000 and $635,000. The final price depends on factors like square footage, interior and exterior finishes, and local requirements such as city permits and inspections. Chicago’s climate also plays a role since foundations must be built to handle deep frost lines, and roofing and siding materials need to withstand freeze-thaw cycles. This guide covers these and other factors so you can create an informed budget for your new home.  

Home Building Cost Factors

What you’ll pay to build a house in Chicago, IL, is based on factors like the home’s square footage, number of bedrooms, and foundation type. Exterior and interior finishes also make a big difference, since things like siding, roofing, flooring, and countertops can push costs higher depending on the materials you pick and how they hold up to Chicago’s 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.

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.

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.

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.

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.

Home Building Pro Costs

Hiring a pro to build a home in Chicago means paying more than labor rates alone. When budgeting for this project, you’ll also want to factor in costs for things like permits, taxes, and tipping. 

Labor

General contractors usually charge 15% to 20% of the total construction cost for overseeing the project and coordinating tradespeople. Individual pros like plumbers, electricians, and HVAC installers often bill $100 to $175 per hour, which is somewhat higher than national averages due in part to Chicago’s union rates and the city’s higher cost of living. And labor can get even more expensive when the build involves navigating tight city lots, tearing down older structures, or scheduling around harsh winter conditions.

Permits

The Department of Buildings issues permits for all new residential construction in Chicago. Fees are based on the project’s estimated cost and square footage, with a minimum of $302. A single-family home permit can range anywhere from $500 to $5,000. Extra costs can come up if the project needs a zoning variance, an expedited review, or environmental approval. Because Chicago enforces strict building and energy codes, make sure to plan for added time and expense during plan reviews and inspections.

Licensing and Insurance

Chicago requires general contractors to register with the city and obtain a contractor license, which is issued in different classes depending on the size and type of projects they’re allowed to take on. Trade professionals in the city, like electricians and plumbers, also need their own credentials.

All licensed contractors in Chicago are also required to carry general liability insurance and workers’ compensation coverage. The costs to maintain these credentials are typically built into labor rates, but they help protect homeowners from liability if an accident happens on the job site or if property damage occurs during construction, so make sure to verify all credentials are current before starting work.

Taxes

Chicago has one of the highest sales tax rates in the country at about 10.25%. Contractors need to pay that when they buy building materials, so it’s factored into the price you’re quoted. However, bigger costs can come after the house is done being built because Cook County sets property taxes based on what your home is worth. So when you finish new construction, the county updates its records to show the house is new, and your property tax bill increases to match the higher value. This means that even if your lot was taxed at a low amount before, you’ll start paying property taxes at the full value of the completed home going forward.

Additional Pros to Consider Hiring

When building a new house, a general contractor usually manages the project, but certain parts often require licensed pros with their own specialties, such as plumbing, wiring, HVAC, and structural work. Each comes with its own price tag, and those costs add up alongside the main contract.

• Draftsperson costs: $75–$150 per hour

• Foundation contractor costs: $4,000–$14,700

• House framer costs: $1,400–$7,700

• Plumber costs: $100–$175 per hour

• Electrician costs: $100–$150 per hour

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

• Roofer costs: $5,900–$13,200

Is Building a New House Worth It?

Property values in Chicago tend to rise steadily rather than explosively, so you can generally expect a modest appreciation each year rather than a quick flip. But for many homebuilders, the real return comes from living in a modern, low-maintenance house that’s built to current safety codes and designed around how you actually want to use the space. 

Features like better insulation, updated HVAC, and layouts that support aging in place or multi-generational living add comfort now and appeal to future buyers. So while Chicago isn’t the hottest housing market in the country, a new build here combines steady financial growth with benefits in terms of efficiency, safety, and functionality.

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 extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on 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. 

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