Cost to Build a House in Austin, TX [2025 Data]

The cost to build a house in Austin, Texas, costs about $357,000 on average, but it can range from $253,857 to $537,500. Building in Austin is more expensive than in more rural parts of the state, given the desirable urban environment the city offers, as well as the high cost of land. The final cost of your new home will depend on several factors, including the size of your home, the materials you choose, labor fees, and other expenses.

Home Building Cost Factors

There are many variables that affect the final cost of new home construction, including the size of your desired home, the desired finishes, utility connections, labor prices, and more. Building in Austin is more expensive than the Texas state average, given the higher cost of living, land availability, and labor fees.

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. The average home size in Austin, Texas is about 2,000 square feet, so if you choose to build a home that falls within the median size, you should expect to spend about $300,000.

Cost of Land

The price of the plot for your home will be a major factor when calculating the cost to build a home. In Austin, expect to spend an average of $7,306 per acre of land, though prices vary significantly depending on location. In Davenport Ranch and West Lake Hills, for instance—both notable for their sweeping views of the city—the price for an acre of land can be as high as $1 million. 

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.

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.

Utility Set Up

If the land you purchased does not have utilities already connected, expect to spend an average of $3,000 to connect the plot to a sewer line in the street or between $3,600 and $12,400 to install a septic system. If you need to run an electrical line to your new home, you’ll spend an additional $12,250.

Home Building Pro Costs

Hiring a general contractor who specializes in new home construction is essential—a home building expert in Austin will know how to navigate complicated permits, hire the appropriate subcontractors, and have the appropriate licenses and insurance for this kind of work. The state of Texas does not require specific licenses, but the city of Austin does.

In addition, contractors in Austin must have liability insurance as well as workers’ compensation insurance. These insurance policies are not only mandatory, but they are very useful: they cover your property, you, and the workers performing the build in case any damage or an injury occurs. 

Permits

Building permits are required by Austin; the city has a chart you can review to better understand the cost. Your contractor should be able to help you understand the required permits and help you obtain them, but expect to spend about $1,200 if you are building an average-sized home of 2,000 square feet.

Building Designs

You’ll likely want to hire an architect to draft the building designs for your new home. Architects charge between $125 and $250 per hour, but typically request payment as a percentage of the total construction cost—normally between 5% and 15%. The average total cost for an architect runs between $16,000 and $48,000.

Site Cleanup

Many home builders include basic cleanup in their fee, and this typically covers the removal of leftover building materials. That said, there is likely to be some dust and material around that you may want to tidy up before you move into your new home. The cost to clean up a construction site ranges from $250 to $1,250 for a 2,500-square-foot home or between $0.10 and $0.50 per square foot.

Additional Pros to Consider Hiring

Building a new house is a major project, and you’ll likely need to hire a variety of professionals. Here are some common experts that get hired for new home construction and their average fees:

• Draftsperson costs: $75–$125 per hour

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

• 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

Is Building a New House Worth It?

Deciding whether to build vs. buy a house? Overall, Texas has seen a rise in home prices, with home values increasing by about 45% since 2020—this figure encompasses both new and existing homes. While building a new home typically costs more than buying an existing one, there are many long-term benefits to building a new house. With Austin’s extreme weather, you can opt to build a new home with energy efficiency and insulation in mind; in addition, when everything in your residence is new, your maintenance costs will likely be lower than if you had purchased an existing house. 

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. 

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