Basic costs of building a house in 2021

The process of constructing a house is really quite complex. It involves over 100 different trades that must be performed by highly specialized tradespeople, each with its own set of standards, protocols, and processes. This complexity makes it extremely difficult for the average person to imagine what it would take to construct a house.

The costs of building a home can be broken down into several various aspects. We’ll walk you through the steps of creating your own custom dream home and then we’ll break down the cost of building your new house by hand, brick-by-brick, as well as using the more advanced tools.

We start with a look at some national and regional averages so you can get an idea of what to expect. Then we’ll show you how to calculate each step of the way by hand or by machine so you can see exactly how much it will cost you to build your dream home.

What should you think about before building a house?


The first thing to understand about house construction is that your building materials are not the only things you’ll need. You’ll also need to consider all the costs associated with planning, design, permitting, and construction.

Building codes vary widely by city and state. If you’re building close to where you live now, it’s unlikely that you’ll need to hire a professional architect or engineer, but if you’re building somewhere else, that may not be true. You may have to pay for both.

In recent years, though, some new innovations have been allowing us to build better houses for less money. And those innovations will continue to make life easier for builders, even as they make it more expensive for homeowners.

The cost of building a new house


The cost of building a new house depends more on the local cost of construction than the size, type, or location. The price can also vary quite significantly by geographic region, but those variations are usually due to the requisite materials and the overall design of the home.

The total cost to build a house in 2021 is $298,432. That number is average, and not everyone will pay that amount. So if you’re thinking about building a new house, it’s significant to consider what factors can vary the final price.

When constructing your home, you should consider the materials and construction costs listed below:

The biggest single cost of building a house is lumber costs. In the past, as lumber fell in price, the cost of building a house climbed as well. Today, that’s not the case. Prices for lumber and other building materials have fallen significantly over the last few years and tend to make up about 30 percent of the total construction cost of a house.

Lumber: The average cost of a 2,600 square foot house is $125 apiece for a standard 2×6 wall construction with no insulation. The average cost for a 5,600 square foot home is $90 apiece.

Windows: Most windows are 32 inches by 72 inches with 3-inch frames and double-hung windows that have two leaves that slide up and down on rails. The average window price is about $250 each.

Attic Storage: In most homes, the attic storage is accessible via stairs from either the second or third floor. In some basements, the storage space is under the crawl space accessible from outside the basement floor through a trap door in the floor. The average cost of a storage area with a small access door in most homes with no insulation is relatively $20-$30 per square foot based on 8-foot ceilings and 7-inch insulation.

The largest single expense is land acquisition costs (roughly 28 percent) and then site preparation (roughly 20 percent). Other major expenses include foundation ($12 percent), plumbing ($11 percent), heating and cooling ($8 percent), electrical ($6 percent), interior finishes ($5 percent), doors and windows ($4 percent), paints and stains ($3 percent) and roofing ($3 percent), according to HomeAdvisor research.

When building, we need the help of professionals. If you need strategic advice on a project or need to build a construction contract, contact construction lawyers to help you resolve or avoid disputes.

Houses in accordance with the budget


If you do not have erough money, you can build a smaller house than the average. If you want to build your own tiny house, you’ll need to get creative. You can, for example, use an old set of cabinets and find creative ways to reuse them. But there are also kits available that will help you build your own.

Tiny houses can be made of many different materials, so they don’t have to look like a traditional home. For example, while some may be made of wood or metal, others can be made out of plastic, foam, or fiberglass. If you want a home that looks more like a bungalow, you can start your search at $125,000 and go up from there.

You’ll want to choose a site that’s already been cleared of trees, rocks, and other obstacles. In general, the farther from the nearest road, the cheaper, it will be to build on your land.

The average price for a new house in the U.S. is around $300,000 to $400,000. That means that the average American has about 1,000 square feet of living space. This is tiny compared to many other parts of the world where 500 square feet is considered a large house and 3,000 square feet are considered an apartment!


Share your impressions with us. How much money did you invest in building the house?