How Much Does It Cost to Build a House?

How much building a house costs depends on factors such as the home’s size and location, as well as the costs of material and labor.

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

Written by

Lead Writer & Content Strategist

+ more

Edited by

Contributing Editor

+ more

Co-written by

Contributing Writer

+ more

Building your own house comes with clear advantages: you can choose the location, design the layout and tailor every finish to your taste. But that freedom comes at a price. Specifically, constructing a home from scratch often carries expenses you won’t have when buying an existing home or even a newly built one in a planned development.

Exactly how expensive it is to build your own house depends on a variety of factors, including the home’s size and where it’s built. Land costs and labor expenses will also move the needle.

Breaking down the costs can put your budget into perspective, and it may help determine whether building or buying is the right move for you.

Table of Contents

Mortgage loans from our partners

on NBKC

NBKC

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on NBKC

on New American Funding

New American Funding

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

N/A

Min. down payment

0%

on New American Funding

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on GO Mortgage

COMPARE MORE LENDERS

Mortgage loans from our partners

on NBKC

NBKC

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on NBKC

on New American Funding

New American Funding

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

N/A

Min. down payment

0%

on New American Funding

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on GO Mortgage

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

580

Min. down payment

3.5%

on Rocket Mortgage

on Veterans United

Veterans United

5.0

NerdWallet rating

5.0

NerdWallet rating

Min. credit score

620

Min. down payment

0%

on Veterans United

COMPARE MORE LENDERS

» MORE: See how much house you can afford

National average cost to build a house

The national average cost to build a typical single-family home in 2024 was about $428,000, according to the most recent Cost of Construction Survey conducted by the National Association of Home Builders (NAHB). Of course, depending on your specifications and whether or not you’ll need to purchase land, it could be much more expensive.

How location affects homebuilding costs

How much you'll pay to build your new home can vary significantly depending on your state. For instance, Alaska, California and Hawaii are among the most expensive states to build a home in, according to home construction technology company Home-Cost.

Some of the least expensive states to build in include Arkansas, Mississippi and Oklahoma.

» MORE: First-time home buyer programs by state

Cost by size

The size of your home will affect building construction costs. The median home size in the U.S. is 1,788 sq. ft. as of January 2026, according to Realtor.com data retrieved from the Federal Reserve Bank of St. Louis.

You can expect to spend about $180 to $280 per square foot on a basic home, according to data from HomeGuide, another digital platform that connects contractors with homeowners. For a median-sized home, this puts the estimated construction cost between $321,840 to $500,640.

Here are the average costs of homes broken down by square footage.

Cost by number of bedrooms

In addition to the home’s overall size, more bedrooms can lead to a higher price tag. According to HomeAdvisor, an online resource that connects contractors and homeowners, homebuilders spend an average of:

$93,000 to $155,000 for a two-bedroom house
$248,000 to $310,000 for a three-bedroom house
$388,000 and $465,000 for a four-bedroom

Three-bedroom homes made up the lion’s share of new houses started in 2024 at 47%, according to the NAHB, while only a little over 11% had one or two. Four-bedroom homes slipped to a little over 32%, marking a third straight year of declines.

Cost by project elements

Building a house involves many steps, from purchasing the land to installing plumbing. Here are average costs for various homebuilding project elements that add up to your final bill.

Labor costs

Hiring professionals to construct your home may account for the largest share of your homebuilding costs — about 30% to 50%, according to Angi, the largest online marketplace connecting homeowners with home services professionals.

The cost of labor varies across the country and depends on the size and complexity of your design. You may be charged by the hour or by the square foot. Here are some of the professionals you may need to hire, with corresponding cost estimates from Angi.

Structural engineer: $70 to $250 per hour
Draftspeople: $75 to $125 per hour
House framer: $7 to $16 per square foot
Roof framer: $8 to $9 per square foot
Roofer: $4,500 to $10,800 (depending on square footage, location, job complexity)
Plumber: $45 to $200 per hour
Electrician: $50 to $100 per hour

🤓Nerdy Tip

Contract and construction cost estimates may be lower than the final price, which can include additional expenses not related to building a house, like lot-finishing costs, financing costs, marketing costs and sales commissions.

» MORE: Buying a house this year: What to expect

Ways to finance your new home

Buying a new house from a builder means buying a newly constructed home in a planned development. If you need to get a mortgage, it may be available from a lender that has partnered with the builder, and the process may be very similar to financing an existing home.

On the other hand, building your own custom home from scratch means buying land, hiring an architect to design the house and then a builder to construct the home. If you can’t pay cash for the land and design of the house, you’ll need a construction loan.

Construction loan financing

When financing a custom-built home, a traditional mortgage is usually not an option. Construction loans are short-term loans that finance the building of a home. There are three main types of construction loans:

A construction-to-permanent loan pays for the construction of your home. While the home is being built, you’re only required to pay interest. After the home is completed, your payments will include both interest and principal.
A construction-only loan covers just the cost of construction. It has to be paid off entirely when the building is complete, usually by a traditional mortgage. They typically have a term of one year.

A renovation construction loan covers the cost of purchasing a home and any major renovations with a single loan. The options for a conventional renovation construction loan are the Fannie Mae HomeStyle loan or the Freddie Mac CHOICE Renovation loan.

It can be more challenging to get approved for a construction loan compared with a typical purchase mortgage. Lenders view them as riskier because you can’t use the home as collateral, as it hasn’t been built yet.

If you need a construction loan, NerdWallet’s list of the best construction mortgage lenders can be a great place to start your search.

» MORE: How to get a construction loan

Mortgage loans from our partners

on NBKC

NBKC

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on NBKC

on New American Funding

New American Funding

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

N/A

Min. down payment

0%

on New American Funding

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on GO Mortgage

COMPARE MORE LENDERS

Mortgage loans from our partners

on NBKC

NBKC

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on NBKC

on New American Funding

New American Funding

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

N/A

Min. down payment

0%

on New American Funding

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating

4.0

NerdWallet rating

Min. credit score

620

Min. down payment

3%

on GO Mortgage

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating

4.5

NerdWallet rating

Min. credit score

580

Min. down payment

3.5%

on Rocket Mortgage

on Veterans United

Veterans United

5.0

NerdWallet rating

5.0

NerdWallet rating

Min. credit score

620

Min. down payment

0%

on Veterans United

COMPARE MORE LENDERS

Should I build or buy?

The median price of an existing home hit $396,800 in January 2026, according to the National Association of Realtors — the highest January sales price on record.

Still, like construction costs, the price of an existing home varies by location. Whether you choose to buy or build may depend on which is the more economical choice in your area, and whether there are enough existing homes to choose from.

Budget considerations aside, there are other factors to consider when deciding whether to build or buy.

Time: Do you have the time and resources to devote to building a new home? If convenience is a priority, buying an existing home is likely the way to go.
Level of customization: If you have a highly specific vision, building a house will give you more flexibility than trying to find an existing home that meets your requirements.
Availability of choices: This applies to both buying and building. If available listings are few and far between in your chosen area, you may be inspired to build your own home. Alternatively, if you live in a dense area with few open lots, it might be more feasible to buy an existing home.

» MORE: Buy, build or fix: What's best for first-time home buyers?

» MORE FOR CANADIAN READERS: How much does it cost to build a house?

More like this

How to Move in 2026