How Much Does It Cost to Build a House?
Exploring Costs and Considerations
The housing market is tight with limited available inventory that gets purchased quickly and often for more than the asking price. It is a competitive market and may lead you to consider the cost of a new build. After all, given purchase prices, it might be worth considering a new build so you get exactly what you want – no compromises!
If you’re exploring the possibility of building your own home, the first question on your mind is likely: “How much does it cost to build a house?”
It’s a smart and necessary starting point.
While the cost of building a house varies widely, understanding key cost drivers can help you make informed decisions and weigh your options.
What’s the Average Cost to Build a House?
So, how much does it really cost to build a house?
The national average ranges between $400 and $1000 per square foot for traditional custom builds (a wide range!), but it is essential to note that these building costs differ by state. That means a 1,400-square-foot home could cost between $560,000 and $1.4 million, depending on where you build, what finishes you select, and how long the process takes.
In high-demand areas or with luxury materials, prices can exceed $1,000 per square foot.
5 Key Factors That Affect the Cost of Your Home Build
If you’re wondering how much it costs to build a house, the answer depends on more than just your total square footage or average material prices. A wide range of factors, from the complexity of your design to the location of your lot, can significantly influence your final budget. Understanding these cost drivers will help you plan more accurately and avoid surprise expenses down the line.
Let’s break down five of the most important elements that shape the total cost of building a home.
1. Location and Land Prep
Your region, local permitting requirements, and the condition of your building site can significantly affect pricing. Raw land might look inexpensive, but grading, excavation, utility hookups, and permitting can add tens or even hundreds of thousands of dollars to your budget.
2. Size and Layout of Your Home
Due to the increase in total square footage, larger homes cost more to build; however, the layout also plays a significant role in determining the overall cost. Complex floor plans, an increase in the total number of “expensive areas” such as bathrooms, kitchens, and highly specialized spaces (think libraries, spa rooms, etc.), and multiple wings or intricate levels are more expensive than compact, efficient designs.
3. Materials and Finishes
From siding to countertops, your material selections will affect the total cost. Custom cabinetry, high-end appliances, and luxury finishes can also add to your budget.
4. Labor and Timeline
Construction labor shortages mean on-site labor costs are higher than ever. Companies that pay employees a living wage and offer appropriate benefits will typically employ more highly skilled and loyal crews. The advantage is a more stable workforce for the duration of your build, but it does translate into higher costs passed on to you. Long build timelines can also lead to unexpected expenses due to material price fluctuations or weather delays.
5. Architectural and Engineering Fees
Hiring an architect and structural engineer is a must for custom homes, but these services come at a price, often totaling 15-20% of your construction budget.
7 Hidden Costs to Consider When Building a New Home
When calculating how much it costs to build a house, many homeowners focus on the square footage or the cost of construction materials. But some of the most significant budgetary surprises can come from costs that aren’t always visible upfront. These hidden and ongoing expenses can have a real impact on your final budget—and your long-term investment in the home.
1. Utility Connections and Trenching
Unless your lot is already fully serviced, connecting water, sewer, electric, gas, and internet lines to your new home can be surprisingly expensive. This includes trenching (digging and laying pipes or cables), hiring contractors, and coordinating with local utility companies—particularly costly if your home is in a rural or undeveloped area.
2. Site Work, Grading, and Soil Prep
Before building can begin, the land might need to be cleared, graded, or even re-engineered if the soil isn’t stable. This site prep work can add tens of thousands of dollars to your budget, depending on the lot conditions and how much grading or excavation is required. If your build site is not close to a main road, the cost of installing a properly sloped, drained, and engineered driveway can also add a significant expense.
3. Permit Fees, Inspections, and Code Compliance
Each municipality has its own set of building permit fees and inspection requirements. You’ll need to budget for structural, electrical, plumbing, and energy code compliance, often at multiple stages of the build. In some areas, design review boards or environmental impact reports may also be required.
4. Landscaping and Exterior Hardscaping
A finished home is just part of the full picture. Walkways, decks, patios, fencing, irrigation, and landscaping can add significant costs—especially if you’re aiming for curb appeal or outdoor entertaining spaces. Many homeowners defer these expenses only to find them unavoidable soon after moving in.
5. Interior Fixtures and Finish Upgrades
Standard construction square foot costs may not include the upgraded fixtures, lighting, appliances, and finishes many homeowners expect. It’s important to clarify what’s included and budget for any upgrades—custom cabinetry, high-end countertops, and specialty flooring can dramatically increase costs.
6. Temporary Housing and Storage
If construction delays occur or you’re selling a home before your new one is ready, you may need to pay for temporary housing or storage for your belongings. While not technically part of the construction cost, these costs can be frustrating add-ons if the timeline slips.
7. Contingency for Overruns and Surprises
No matter how well you plan, unexpected expenses are common. Weather, labor shortages, or permit delays can push your project off-schedule and off-budget. Most experts recommend setting aside at least 10–15% of your total construction cost as a contingency buffer.
Is There a Way to Build a House More Affordably?
Many homeowners are seeking alternatives to traditional custom builds, which, as we’ve just seen, can run well into the seven figures even for modest square footage. Some construction companies are redefining what it means to build a quality home by deploying a panelization approach that can dramatically reduce cost without compromising design, craftsmanship, or sustainability.
For homeowners seeking to build without the unpredictability and lengthy timelines associated with traditional construction, panelized homes provide a compelling alternative. This method utilizes pre-manufactured wall, floor, and roof panels, which are built in a climate-controlled facility and assembled on-site, to streamline the construction process, reduce material waste, and enhance quality control.
Because the components are precision-built off-site, panelized home construction is far less susceptible to weather delays, labor shortages, and on-site errors. The result is a building process that is more efficient, consistent, and cost-conscious than conventional stick-built construction.
Why Panelized Construction Helps Control Costs
Panelized construction introduces a range of efficiencies that help manage the bottom line:
- Reduced on-site labor leads to fewer in-the-field delays
- Precision engineering minimizes material waste
- Faster timelines lower carrying costs, such as loan interest or rent during construction
- Weather resistance keeps your project on schedule regardless of the climate
Want to explore panelized homes further? We have a guide dedicated to this unique type of home construction.
Silver Maple’s Solution: Achievables
At Silver Maple, we’ve taken these benefits a step further with Achievables—our panelized home line designed for those who want sustainability, beauty, and smart construction all in one package.
An Achievable home typically starts around $600,000—a figure that may seem high until you consider that a comparably sized custom home (around 1,400 sq ft) could cost over $1.4 million. Achievables offer the same craftsmanship and architectural quality you’d expect from a Silver Maple custom build, delivered in a more efficient, streamlined way.
With panelized construction at the core of every Achievable home, you get predictable pricing, reduced build times, and a lower environmental footprint, without compromising on aesthetics or livability.
Is Building a House Right for You?
Whether you’re exploring how much to build a house traditionally or researching modern approaches like panelized homes, it’s important to weigh your options through the lens of budget, timeline, and design flexibility. While traditional custom homes offer unlimited options, they also typically come with higher costs, longer timelines, and more stress.
Panelized homes offer a compelling alternative: speed, value, and sustainable living without compromise.
Ready to Explore Your Options for Building a New Home?
If you’re ready to build a home that balances cost, sustainability, and design excellence, Silver Maple’s panelized home approach could be the perfect fit. Our Achievables division is changing the game in residential construction—and making dream homes more accessible.
Contact Silver Maple today to learn more about how much it costs to build a house with us, and how a panelized home could work for you.