Build your own house. For many people, this is a great idea. After all, home is where most of life’s fondest memories take place – who wouldn’t want to live in a brand new home built just for them?

Of course, newer things always come at a higher price, which means building isn’t for everyone. So how much does it cost to build a house these days? And can you afford it?

What is the average cost to build a house?

The average cost to build a house is just over $475,000. This estimate is based on a single-family home measuring nearly 240 square feet, and the data comes from a 2020 study by the National Association of Home Builders.

Now, the cost of building a home for you will depend on factors such as size, location, labor, materials, and current housing trends. It is therefore difficult to give a perfectly precise and unique answer. Let’s take a closer look at what the cost might look like for you based on some of these factors.

House building costs by size

The average cost to build a custom home is around $1570 per square foot. Here’s how it works for different house sizes:

Square meters Costs to build a house
92 €98,000 – €200,000
140 €147,100 – €300,000
185 €196,200 – €400,000
232 €245,200 – €500,000
278 €294,300 – €600,000

Now you can understand why tiny houses are so popular! But before jumping on that bandwagon, think realistically about how much space you need. You don’t want to cram your family into a house that’s too small, or waste money on space you don’t need. If you still want to live bigger, you can cost of building a villa find here.

Housing cost estimate

house-renovate-man-woman

At this point, you might be wondering: how much exactly does it cost to build a house? Don’t worry, we’ve got you covered in that area too.

In this section, we will discuss the main parts of building a house and see how much it costs on average to complete each job. All numbers come from the same 2020 NAHB data we looked at previously, and each category includes a $981 buffer, because let’s face it – not everything goes to plan when you’re building a house, and you want to have some more cash in hand.

Keep in mind that each of the following numbers is based on the average price for that stage of the process, so the numbers may look slightly different to you. Ultimately, your budget determines how much you spend in each of these areas (more on budgeting later). For a villa through Construction of villas in Lichtenberg you will of course end up with a slightly higher amount.

General construction costs: €96,132

The first set of expenses to think about are the more general expenses related to the business side of building a home. You’ll have to pay your builder various costs for their work, such as overhead, marketing costs, and profit (because they’re probably not doing this as a favor). These costs add up quickly and can easily add up to six figures.

Finished land: €88,284

A finished lot, unlike a vacant lot, includes both the land your home will sit on and all the utilities you need, such as water lines, power lines, and a sewage system. Buying a lot costs an average of €88,284.

You can buy vacant land for less money, but you’ll still feel a drain on your wallet if you have to install all those utilities later.

Activities: €17,657

Earthwork is a collective term that encompasses several elements of the construction process, the first of which is the completion of your construction plans. An architect or draftsman can create your plans, detailing every detail of your new home – from size and layout to electrical wiring and design.

After you’ve made your plans, you’ll need to pay for any permits and inspections required by law before your builder can start the actual construction. You’ll also have to pay exorbitant fees, including the cost of obtaining a building permit and $4,000 for water and sewer inspections.

Foundation: €34,333

Once the site is ready, your builder will lay the foundation for your home, which is usually wood and concrete. Homes with basements generally cost more than homes without a basement because they require more space. Your home may also need retaining walls to keep the surrounding soil from collapsing and falling onto your foundation.

Framework of the house: €51,000

brown wooden structure

Prepare yourselves. No, literally! The framing of your house is one of the largest costs in your budget for building a house – only the land itself and the costs of the interior are added. This is when your home begins to take shape. Building the frame of a house (including the roof) requires a ton of lumber, which can add up to $40,000 or more.

If trusses – the fanciful name for a series of triangular structures that support the roof – aren’t included in the cost of the frame, they can add an additional €6,000 to the budget.

Once the “bones” are there, you’ll have to pay around $3,000 for sheathing – a flat layer of planks that covers and protects the frame and rafters. Think of it as the skin covering the bones of your home. If you add metal or steel materials, the cost of the skeleton increases by an additional $2,000.

Exterior: €41,000

lit-evening-house

The exterior wall is an expensive item because it covers the entire perimeter of your home and it requires a lot of material – on average $18,000.

Exterior finishing also includes making openings in your home, such as doors, windows, and the garage. You can bet that these costs are around €12,000. Finishing the roof is an extra €10,000.

Interior: €73,500

tree trunk coffee table-living room-black-benches

Take out your wallet! Next to the cost of the finished land, the interior is usually the most expensive part of a home’s construction cost. There are a lot of expenses to cover, so let’s break them down on a chart.

Installation of large systems: €43,161

Installing major systems in your home costs about as much as exterior finishing. Major systems include plumbing, HVAC, and electrical. Unfortunately, downsizing isn’t really an option here (unless you don’t mind not having an indoor toilet).

Please note that these charges do not include actual appliances connected to plumbing and electrical systems, such as sinks, toilets, and light fixtures. This stuff is included in the cost of the interior finish.

Last steps: €19,619

You are almost there! The final stages of building a home bring you to exterior elements like landscaping and the driveway. They also include surrounding structures such as a porch, patio, or deck. And don’t forget the end-of-stay cleaning which can cost around €2,943.

Miscellaneous: €10,790

Finally, when building a house, the average person spends $10,790 on things that don’t fit into any of the other nine categories. So be sure to set aside this amount for anything you need, or in case something unexpected happens along the way.