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, an American family with three to four members can fit comfortably in a 2,000 square foot home. As shown below, the construction costs per square foot are around $150 on average. Effectively, construction costs for a home for a family of four should be $300,000. 

If aiming for builder-grade home construction, the lower cost range will be most relevant. Customized luxury construction will be in the range of $500 /SF. or more depending on the features of the home.

For builder-grade or mid-grade home construction, expect the following costs depending on the size of the 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

In the United States, the typical cost per square foot varies based on the region or state. Census Bureau data below indicates the differences between regions: 

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 equate to higher costs in land, materials and labor. Specific regions have union labor for construction which charges a premium compared to non-union. In the table below, explore the most affordable states to build a home and how much it costs to build an average 2000 SF. 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 - Based on Number of Bedrooms

For wood-framed homes, a 1-bedroom house can cost between $80,000 - $400,000 for 800-1000 SF.Building a larger home with higher-end materials will increase construction costs.

A 4-bedroom wood-framed home that is 2,000- 2,500 SF will range between $200,000 - $421,000. The price will vary depending on the materials selected and the features 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 pre-construction costs are the house plan, land condition, design, demolition costs, and building permits. Overall, 10%- 25% of construction costs may be spent on pre-construction. 

Below are some of the pre-construction costs to consider before starting a 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 when building a new home or completing an addition to an existing one. In general, the cost of a building permit franges from $1,200 to $2,000. 

Construction Project Management Fees

A construction manager ensures the project is executed according to plan. On average, a construction manager charges 5% to 15% of the project's total cost.

Demolition 

Expect to pay between $3,000 - $25,000 for demolition Several factors affect demolition cost including the house size, location, and presence of asbestos or lead paint.

Architectural Plans

Building a dream home begins with the creation of architectural plans. Plans can cost around $5,000 depending on the complexity of the house and the qualifications and experience of the architect. 

Impact Fee or Local Charges

Before beginning construction, impact fees, permits and local fees are imposed by the local government. The fees can cost around $3000 depending on the location of the property.

Land

A variety of different factors, including the lot's size and location, can influence the cost of a 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. Additionally, anticipate spending $1,500 - $3,000 on land preparation and site work before construction begins.

Water and Sewer Inspections

An inspection of the sewer line can cost between $227 - $797. Costs vary depending on location and the experience of the inspector. Before performing work, it is always recommended to get a price quote from multiple companies that may potentially perform the work. 

Estimators

General contractors that are hiring estimators can expect to pay the following in annual salary 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 is attributed to labor. These labor costs are often influenced by a general contractor's buying power, the size and complexity of the house, and the property’s 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

Cost To Build A House - Home Exterior Materials

The exterior finishes contribute to the overall look and feel of the home just as much as the exterior design. Finishes include exterior walls, roofing, windows, and doors. 

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

For more in-depth detail on the cost ofexterior 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

Cost To Build A House - Interior Materials

Interior finishes often cost between $50,000 - $175,000. Interior elements include HVAC systems, flooring, insulation, plumbing, paint, and fixtures. 

For more detail on the costs of 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 Pre-Construction costs

For general contractors trying to reduce costs, the pre-construction process is one of the highest sources of overhead. Manual and digital takeoffs are both costly and time-consuming and can cost around $66,816 in annual overhead. 

With Togal.AI, automate up to 80% of the takeoff process with machine learning models. Estimates can be finished faster while reducing extra overhead.  

Ensure Accuracy of the Estimate

Inaccurate estimates can lead to cost overruns. For a contractor, this can result in disputes and loss of profit. For homeowners, cost overruns can cause the project to go over budget and derail finances. 

Preventing cost-overruns can be done by eliminating manual, error-prone calculations. An AI estimating software such as Togal.AI can 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. With a small  budget, consider using cheaper, more available, alternate building materials that are similar in quality. Rcycled but otherwise structurally robust materials such as steel can be a cost-effective solution. 

Work with Qualified Specialists

When hiring estimators, architects, or interior designers, look for experienced and certified specialists. Having excellent qualifications and experience will provide better quality.

Maintain the Project Timeline

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

  1. Outline clear timeline expectations in the contracts. Document and communicate with everyone involved. 
  2. Document and communicate to keep everyone informed. 
  3. Review the schedule on a regular basis. It is important to be aware of potential delays and to strategize to mitigate risks. 

Final Words

Building a house offers many benefits. It's often cheaper and easier to customize an existing home compared to buying a newly built home. Before building, first determine the cost and budget. 

To reduce the cost to build a house, plan meticulously and work with professionals. Leverage the power of Togal.AI’s efficiency when conducting cost estimation. Refer to updated prices based on factors like location, building size, labor costs, and materials.

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

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