Home building costs depend on your project and location. Check with a local pro for your specific job.
In Minneapolis, a total sales tax rate above 9% makes sourcing building materials and finishes more expensive compared to most other cities around the country.
The standard of building a basement foundation in Minneapolis also makes home construction more expensive here compared to areas of the country where slab foundations are more common.
Depending on the value of your new home, Minneapolis permits for new construction can total between $900 and $8,000 on average.
The average cost to build a house in Minneapolis is below the national average at just around $460,727. Depending on the size and layout of the home, you might end up paying between $315,833 and $634,600 for the finished project. Everything from high-end finishes to the type of foundation you select will ultimately determine the final price per square foot for a new build. Read on to learn more about individual cost factors when building your own custom home in Minneapolis, MN.
Your custom builder in Minneapolis will set a price per square foot based on factors that include home size, the grade of materials and finishes you choose, and other factors. In Minneapolis, it's important to choose a foundation option that accommodates Minnesota's deep frost line. This is why builders generally go with basement foundations instead of shallow slab foundations that are more popular in warmer climates or areas with high water tables.
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.
| House Size (Sq. Ft.) | Price per Sq. Ft. | Average Cost |
|---|---|---|
| 1,000 | $115–$490 | $115,000–$490,000 |
| 1,500 | $115–$490 | $172,500–$735,000 |
| 2,000 | $115–$490 | $230,000–$980,000 |
| 2,500 | $115–$490 | $287,500–$1,225,000 |
| 3,000 | $115–$490 | $345,000–$1,470,000 |
| 3,500 | $115–$490 | $402,500–$1,715,000 |
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.
| Number of Bedrooms | Average Cost |
|---|---|
| 2 | $135,000–$245,000 |
| 3 | $155,000–$265,000 |
| 4 | $280,000–$410,000 |
| 5 | $425,000–$550,000 |
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–$16 | Fast, cost-effective, moisture-resistant, and pest-resistant | Pipe/utility repairs are more difficult |
| Pier-on-beam | $9–$14 | Flood resistance and easy access to pipes/utilities | Risks for wood rot and pest damage |
| Crawl space | $6–$11 | Decent access for home repairs, minor flooding protection | Moisture is close to home's structure |
| Basement | $21–$39 | Increased living space, potential storm shelter, easy access to mechanicals | Higher cost and longer construction time |
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–$13 |
| Siding | $5–$30 |
| Gutters | $4–$42 per linear foot |
| Exterior trim | $11–$25 per linear foot |
| Stucco | $5–$13 |
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 | $10–$200 |
| Painting | $2–$9 |
| Flooring | $7–$25 |
| Interior trim | $1.50–$2.75 per linear foot |
| Interior doors | $79–$455 each |
When you hire a custom home builder in Minneapolis, they'll work by your side to get your project approved. Generally, builders and general contractors charge by the square foot. One of the questions to ask when building a custom home before signing a contract is whether your builder will be managing all scheduling and payment of subcontractors. Generally, this falls under the duties of a general contractor.
Your builder will work with the city's permitting department through the ProjectDox portal to submit all initial paperwork for approval. This includes building permit applications and land use applications. The initial turnaround time for approval after permit plans are submitted in Minneapolis is 15 days. Each revision has a turnaround time of five days. With the city's pricing for permits totaling a percentage of the total project value, expect total permit costs for a new build in Minneapolis to land between $950 and $8,000, based on the cost to build your home. Houses priced above $1 million are capped at $8,290.50 in permit fees, with an additional $5.60 added on for each additional $1,000 in value.
In Minneapolis, the combined state, county, and city taxes result in a minimum combined sales tax rate of 9.03%. While sales tax won't apply to the labor to build your home, it will be applied to all building materials and finishes purchased for your new home.
In order to act as a licensed contractor in Minneapolis, a builder you hire must obtain a Minnesota Residential Contractor License from the Minnesota Department of Labor and Industry (DLI). Costing several hundred dollars, the process includes a trade exam, business exam, and background check. Contractors also pay between $110 and $345 on average monthly for insurance and bonding.
In general, building a new home in Minneapolis can buffer you against the shortage of available homes for sale. With the average home in Minneapolis being built between 45 and 50 years ago, new construction is also one of the only ways to get the space, layout, and features you want without the need to pay to remodel an existing home.
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’ve surveyed thousands of 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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Mycke Custom Homes, LLCWonderful job. Punctual, courteous, respectful of property and neighbors. Will be contacting them again for future home improvements.
Blue Line ProjectsThis company is amazing. I would highly recommend them for anyone seeking to evaluate their own home or to look into future home purchases. I have a 100 year old home with several challenging drainage areas, that are hard to address. I really appreciate the way they thought through the...
We started our relationship with Craftwerk 15 years ago when they were doing landscape transformations. We have an old home in the city that has "unique challenges." We've been re-hiring Craftwork for all these years because of Jamie's creative vision and solutions, that are executed to high...
CraftwerkHolliday Construction did a great job on our home project. Troy is hard working, very skilled and extremely professional. We recommend this company.
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The Neat Freak LAI am a Minneapolis, Minnesota and Mesa, Arizona-based designer specializing in Kitchen and Bath design. I recently worked with Dan on a complex double bathroom remodel for a Minneapolis client. Dan did spectacular work, was incredibly easy to communicate with, and took care of my client. He...
I had a complete bathroom remodel done by Viking building solutions. They did a fabulous job my bathroom looks amazing they did not disappoint! I will definitely be hiring them again for future remodels.
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