Construction

The Average Cost To Build A House in 2022

These are the factors to consider when determining the estimate for your next construction project.
Togal AI
10 minutes

The Average Cost To Build A House in 2022

How much does it cost to build a house in 2022? What are the factors to consider when determining the estimate for your next construction project? 

Estimating home construction costs doesn’t need to be complicated or time consuming, especially if you have the right information and tools to guide you. 

So if you’re a general contractor, estimator, or homeowner looking to budget for your next home construction project, here’s what you’ll learn by the end of this page.

  • The average cost to build a house
  • Factors to consider when building a home
  • How to ensure accuracy of your construction  budget

Average Cost To Build a House

During the course of the COVID-19 pandemic, labor and supply shortages have led to an increase in building costs. The shortage was driven by more people spending time at home and doing DIY home projects.

Other factors that can contribute to pricing are your location, design, and size of the building. On average, you could spend between $201,000 and $310,000 to build a 2,000-square-foot new home.  

In the table below, you can compare the average costs of building a house. 

Average Range $119,767 – $451,058
Average Costs of Low-End Homes $178,000
Average Costs of Mid-End Homes $248,000
Average Costs of High-End Homes $416,000
Minimum Average Costs $80,000
Maximum Average Costs $1,000,000
National Average To Build A Home $284,001

Cost To Build a House -  Per Square Foot

On average, a typical American family of 3-4 members can fit comfortably in a 2,000 square feet home. As shown below, the construction cost per square foot is around $100 - $500. Therefore, it should cost around $200,000 - $1,000,000 to build for a family of 4. 

If you’re aiming for builder-grade home construction, your bracket should fit the lower cost range. But if you’re aiming for customized luxury costs, you can spend around $500/sq. ft. or more to build your home.

If you’re aiming for a builder-grade or mid-grade home construction, you can expect the following costs depending on the size of your home.   

Size (In Square Foot) Range
800 $80,000 to $160,000
1000 $100,000 to $200,000
1500 $150,000 to $300,000
2000 $200,000 to $400,000
2500 $250,000 to $500,000
3000 $300,000 to $600,000
4000 $500,000 to $1,000,000

If you live in the USA, here’s the typical cost per square foot per different region based on the Census Bureu data.

Region Average Cost per sq.ft
(Labor Included)
Northeast $186
South $122
Midwest $140
West $142

Cost to Build a House - by State

Location is one of the largest factors in home construction costs. Areas with higher cost of living means higher costs in land, materials and labor. In the table below, explore the most affordable states to build a home, and how much it costs to build an average 2000 sq. ft. home. 

State Cost per sq.ft. Cost per 2000sq. ft home
South Dakota $102 $204,000
Kansas $104 $207,000
Nebraska $106 $211,000
North Dakota $107 $213,000
Iowa $107 $214,000
Michigan $109 $217,000
Indiana $110 $219,000
Ohio $111 $222,000
Missouri $114 $227,000
Minnesota $119 $237,000
Wisconsin $120 $239,000
Arkansas $126 $252,000
Mississippi $128 $255,000
Oklahoma $131 $261,000
Tennessee $131 $262,000
Florida $132 $264,000
Texas $132 $264,000
Illinois $133 $265,000
Alabama $134 $268,000
Louisiana $135 $270,000
Georgia $137 $274,000
Kentucky $141 $281,000

State Cost per sq.ft. Cost per 2000sq.ft. home
Maine $141 $282,000
Utah $145 $289,000
Wyoming $145 $290,000
New Mexico $146 $291,000
Maryland $147 $294,000
Arizona $148 $296,000
Colorado $150 $299,000
Montana $150 $299,000
New Hampshire $150 $300,000
West Virginia $151 $301,000
North Carolina $151 $302,000
Pennsylvania $151 $302,000
South Carolina $151 $302,000
Vermont $154 $308,000
Virginia $155 $310,000
Idaho $158 $316,000
Delaware $164 $327,000
Nevada $167 $334,000
Rhode Island $169 $338,000
Oregon $171 $341,000
Washington $172 $343,000
Connecticut $173 $345,000
Massachusetts $176 $351,000
New York $180 $360,000
New Jersey $189 $377,000
California $203 $405,000
Hawaii $207 $413,000
Alaska $211 $421,000

Costs to Build a House - Per Number of Bedrooms

For stick-built homes, a 1-bedroom house will typically cost around $80,000 - $400,000. Its size ranges between 800 and 1000 sq. ft which is smaller than a typical home. However, it’s possible to build a larger home with higher-end materials, which can increase costs. 

On the other end, a 4-bedroom stick-built home should be around 2,000 t0 2,500 sq. ft in size. The range in costs is between $200,000 and $1,000,000. However, the price will vary depending on the materials and size of the home. For example, using builder-grade materials or building a smaller home should lower the costs. 

Number of Bedrooms Average Size Range
1 Bedroom 800 to 1,000 sq.ft. $80,000 – $400,000
2 Bedrooms 1,000 and 1,200 sq.ft. $100,000 – $480,000
3 Bedrooms 1,500 and 2,000 sq.ft. $150,000 – $800,000
4 Bedrooms 2,000 to 2,500 sq.ft. $200,000 – $1,000,000

The Pre-Construction Cost to Build a House

Some of the factors that impact your pre-construction costs are your house plan, land condition, design, demolition costs, and building permits. Overall, you may spend 10% to 25% of all your construction costs on pre-construction. 

Below are some of the pre-construction costs you’ll need to consider before starting your home building project.

Pre-Construction Costs
Building permits $3,000
Construction project management fees $3,000 - $52,000
Demolition and Deconstruction $6,000 to $20,000.
House plans $500 - $3,500
Impact Fee or Local Charges $3,000
Land $90,000
Off-site living accommodations (7 months) $8,600 - 11,900
Water and sewer inspections $4,500
Contingencies $45,000

Local Fees and Building Permits

A building permit is required if you're building a new home or adding to an existing one. In general, the cost of a building permit for home ranges from $1,200 to $2,000. 

Construction project management fees

A  construction manager ensures the project is executed according to plan. On average,  they charge 5% to 15% of the project's total cost which could be as much as $49,000.

Demolition and Deconstruction

While you can expect to pay between $3,001 and $25,000 for house demolitions, there are several factors that can affect the cost. Some of these factors are the size of the house, the site location, and the presence of asbestos.

House plans

Building your dream home begins with the creation of a house plan or blueprint. A house plan can cost around $5,000 depending on the complexity of your house. 

Impact Fee or Local Charges

Before you can begin construction, you need to pay the impact fees, permits and local fees imposed by the local government. The fees can cost around $3000 depending on the location of your property.

Land

A variety of different factors, including the lot's size and location, can influence the cost of an empty lot. According to Home Advisor's data, the average cost of land is $76,500, but some undeveloped rural lots are priced as low as $3,000. In addition, you can anticipate spending $1,500 - $3,000 on land preparation before breaking ground.

Water and sewer inspections

An inspection of your sewer line can cost between $227 and $797. But, the figure can go up to $1200 at the high end. Costs vary depending on where you live and who you call. It also depends on the equipment the plumber uses and how long it takes to complete the inspection.

Estimators

If you’re a general contractor looking to hire estimators for your new house building project, here’s how much you’ll spend annually according to Zippia and ZipRecruiter. 

Level of Experience Hourly Range Annual Salary Range
90th Percentile (15+years) $43 - $49 $90,000 - $102,000
75th Percentile (8+ years) $37 - $41 $77,000 - $86,000
Average (4 years) $32 - $36 $65,542 - $75,186
25th Percentile (Fresh Graduate) $26 - $29 $55,000 - $60,000
10th Percentile $23 - $25 $47,000 - $50,000

Labor Cost To Build A House

Around 40% of the total cost to build a house goes to labor. These labor costs are often influenced by your general contractor's buying power, the size and complexity of the house, and the location.

Labor Costs
Architect Fee $125 - $250/ hr
Bricklayers' Fee $38 / hr
Framer Rates $7-$16 per square foot
General Contractor 10%-20% of the construction's total cost or
$50 - $150/hr
Master electricians’ fees $35 - $55 / hr
Plumber Costs $45-$200 per hour
Roofing Costs $5,000-$10,000, on average

Costs of Home Exterior Materials

The exterior finish contributes to the overall look and feel of your home just as much as the exterior design. It includes exterior walls, roofing, windows, and doors. 

Exterior finishing costs  between $40,000 to $60,000. However, the number of building openings and the types of exterior finishes will affect the final price.

For more in-depth detail on the costs of home exterior materials, refer to the table below.

House Exterior Material Costs
Driveway $4,400
Excavation $2,300
Exterior Siding $11,500
Exterior Windows and Doors $7,750
Foundation $9,000
Framing $33,000
Landscaping $5,860
Roofing $9,200
Solar Panels $17,000 – $20,000

Costs of House Interior Materials

Interior finishes often cost between $50,000 - $175,000, but personal preferences can impact it. This covers HVAC systems, flooring, insulation, plumbing, paint, and fixtures. 

For more in- detail on the costs of house interior materials, refer to the table below.

Home Interior Material Costs
Appliances $3,500 – $15,000
Cabinets and Countertops $11,800
Cleanup $2,600
Doors $1,200 – $3,200
Drywall $15,550
Electrical $10,100
Fireplace $1,400 – $2,500
Flooring $10,250
Furniture $20,000 to $80,000.
HVAC $11,200
Insulation $5,250
Lighting Fixtures $3,100
Paint $7,000
Plumbing $11,000
Plumbing Fixtures $3,200
Septic Tank $3,000 – $5,000
Tile $800 – $5,000
Trim and interior doors $11,000
Water Heater $400 – $1,400
Windows $5,000 – $10,000

How to Reduce the Cost to Build a House

Reduce your precon costs

If you’re a GC trying to reduce costs, one of the areas you should focus on is the precon process. Manual and digital takeoffs are both costly and time-consuming - letting you spend $66,816 in overhead. 

With Togal.AI, you won’t thousands of dollars to complete the precon. By automating up to 80% of the takeoff process through its machine learning models, you can finish bids faster while reducing extra overhead.  

Ensure accuracy of the cost estimation 

Inaccurate estimates can lead to cost overruns. If you're a contractor, this can easily result in disputes and loss of profit. If you're a homeowner, it can force you to spend over the budget and derail your finances. 

To prevent cost-overruns, you need to eliminate manual, error-prone calculations and spreadsheets. It's recommended to use an AI-powered construction software such as Togal.AI to interpret plans with 97% accuracy in less than a minute.

Consider Alternative Materials

The materials used can heavily impact the cost to build a house. If you're low on budget, consider using cheaper, more available, alternate building materials that are at par in quality. You can even use recycled but otherwise structurally robust materials such as steel. 

Work with qualified specialists

If you're hiring architects, estimators, or interior designers, try to look for experienced and certified specialists. Having been exposed to the finest techniques in the market, they are more likely to help you build a great home at the lowest cost.

Maintain the project timeline

Delays in the home construction completion can lead to increased total project costs. To ensure the timeline is maintained, you need to: 

  1. Outline clear timeline expectations in your contracts. Document and communicate with everyone involved 
  2. Document and communicate to keep everyone informed. 
  3. Review the schedule on a regular basis. Doing so informs you of potential delays, and lets you strategize in order to mitigate it. 

Final Words

Building a house offers many benefits. It's often cheaper and easier to customize compared to buying a home. But, before you build one, the first thing you need to do is to determine the costs. 

To reduce the cost to build a house, you need to plan meticulously and work with a professional. Leverage the power of Togal.AI’s efficiency when doing your cost estimation. Lastly, refer to updated prices based on factors like your location, building size, labor costs, and material.

Need help estimating the costs of your home construction project? Book a demo today with Togal. AI.

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