The Cheapest Way to Build a House (2023)

FAQs

The Cheapest Way to Build a House? ›

The cheapest way to build a home is to design a simple box. Sticking to a square or rectangular floor plan makes the building and design simple. Generally speaking, building up is cheaper than building a sprawling one-story home, so you may want to consider planning for a multiple-story home if you need more space.

Prices will vary greatly based on the size and design of the tiny house you want to build, but you can estimate an average of $150 per square foot. If you want to go really tiny, like a 200-square-foot house, you might pay as little as $30,000, while a 600-square-foot tiny home could cost $90,000 or more.

As a rule of thumb, it's cheaper to buy a house than to build one. Building a new home costs $34,000 more, on average, than purchasing an existing home. The median cost of new construction was $449,000 in May 2022.

In general, building up tends to be less costly than building out. When you factor in things like digging and pouring a new foundation, building out typically carries a higher price tag (though this isn't always true, and certainly depends on the size of the room and its purpose).

Perhaps the most expensive part when it comes to building a home is the framing, which consists of wooden beams that make up the home's skeleton. Forbes states that high-quality lumber averages about $33,000 for a home in the United States. Metal stud framing systems begin around $20,000.

West Virginia is the cheapest state to buy a house in as it has the lowest median list prices for homes as well as the cheapest sales price per square foot. Property taxes in the state are also some of the lowest in America.

Are Concrete Floors Less Expensive Than Wood? Because material costs for polished concrete floors are six to eight times lower than that of high-quality hardwood floors, polished concrete is significantly less expensive than wood in new residential construction.

In most homes the yard is the extension of a house.

The minimum plot size is regulated to be at least 320 square feet. Since the house needs to have a square footage of 120, this means you have 200 square feet left to build your outdoor space.

Keep the Walls and Roof Simple

The simplest design — and also the cheapest — to build is a box with a straight roof. That means to avoid any protrusions or nooks and crannies in the walls of the house as those add design and construction costs.

While the average cost to build a house was $285,956 in 2022, most homeowners spend $111,892 – $460,414 to build their homes. Even though you can get a general idea of what you may pay, it's important to keep in mind that there are numerous factors that will impact the cost to build.

What are the disadvantages of building a house? ›

On average it can take approximately 6 months to complete the build of a house. However, it can be as little as 4 months or potentially more than 12 months. For a pre-designed house, you are looking at roughly 4-6 months, while custom designs can take longer at an expected 10-16 months.

Are Barndominiums Cheaper to Build Than Houses. “While barndominiums are less expensive to build than traditional homes, they still need the same features if you're going to live there,” Carson says, stressing that there's no cheapest way to build a barndominium.

A single-story home is more cost-effective to design, but it will cost more to build than a two-story home. To make things more complicated, they'll likely cost less to heat and cool over the years. Crunch the numbers and choose the home design that fits your budget.

More Cost Effective to Build

Did you know? It is more cost-effective to build a two story home than a one story home. Typically, it costs less per square foot to construct because two story home plans offer smaller blueprints.

Ranch Homes

Ranch homes are the most popular home style in the U.S. They're another rectangular-shaped house, though they come in “T” or “L” shapes, too. A home with a simple and concise layout is the cheapest type of house to build. Ranch homes are typically single-story structures with attached garages.

Building a house adds costs for land purchase, the permitting process, and multiple inspections. The farther your plan strays from a standard model, the more costly it will be. Buildable lots in urban areas can be prohibitively expensive.

What is the least affordable state to live in? ›

Hawaii and California are the LEAST affordable places to live in the U.S as incomes fail to keep up with soaring property prices.

Concrete homes are also a good investment. While Concrete houses can cost more to build than wood-frame houses; once constructed, a concrete house quickly recoups the initial costs with lower utility and upkeep costs.

It's cheaper to build a concrete patio in terms of both the initial cost to lay a concrete patio, as well as its cost of maintenance over time. A concrete patio costs only $4 per square foot, while a deck costs roughly $6 per square foot for lower-cost pressure treated lumber.

Although installing concrete pavers technically costs more money than pouring concrete slabs, the truth is that poured concrete slabs come with higher costs overall when you take into account the repairs they require over their lifespan.

The style of your home will also influence construction time. Custom-built homes average around nine months, while personalized production plans average near seven months. Because the floor plans used by production builders have been built many times before, there are generally fewer delays.

An FAR of 3:1 means that for every square foot of Buildable Area, an owner may build up to three square feet of Floor Area. What is the Floor Area Ratio (FAR)? In an R1 zoned lot with a Lot Size of 5,000 square feet, the Total Development Potential for a one-story Single Family Dwelling is 2,600 square feet.

Most states have adopted building and zoning codes from the International Residential Code (IRC). The IRC codes require that all homes must be built on a minimum of 320 square feet. The minimum square footage for a house is 120 square feet, and at least one room must be habitable.

California. Unsurprisingly, California is considered the most-friendly tiny home state. California's state legislation focuses heavily on climate change and minimizing their carbon footprint, this means tiny homes fit right in.

For some people, 2500 square feet (232 square meters) is the perfect amount, and for others, they just need 200 square feet (19 square meters) to be happy. Although there are different sizes of small homes, a tiny house is considered one of the most popular alternatives for an individual or a small family of two.

Is $300 000 enough to build a house? ›

If your budget is under $300,000

You can get up to 3,000 square feet of construction with this budget. You could choose to build a three-bedroom house, or you could bump up the high-end appliances and finishes on a two-bedroom home. Another option is a modular home, a type of living space that comes pre-assembled.

Most notable is their forecast for Material Cost Index (MCI). In 2022, the MCI showed an 18.6% increase, this index is forecasted at 1.3% for 2023. The overall Building Cost Index is forecasted at 3.8% in 2023.

In general, you'll likely find it cheaper overall to buy an existing home, but that also depends on the market. A home loan is less risky than a land loan, and typically comes with a lower down payment and better interest rate.

Pros of barndominiums include a cheaper cost, fully customizable space, and lower maintenance. They're also highly durable with lots of extra room and are a more eco-friendly housing option. Meanwhile, cons include higher upfront costs, difficulties finding financing, and not all cities allow them.

Depending on the circumstances, the average build time to frame a house is anywhere from one week to several months to complete the job. By understanding how long it typically takes to frame a house, you can better plan for your project and avoid unnecessary delays.

What to know before you break ground. In a perfect world, depending on the site and zoning classification, it typically takes from three to six months to build a house.

Modern barndominiums have fewer labor costs due to the design of their structures. They usually feature exterior panels with custom designs that lock easily. The costs are cheaper when you compare it to brick and mortar.

40×60 BARNDOMINIUM METAL BUILDING – 2,400 SQUARE FOOT OF CUSTOMIZABLE SPACE. Our 40×60 barndominium steel buildings provide 2,400 square feet of interior space that can be customized to your specifications.

A barndominium typical costs between $112,800 and $540,000 to build, with homeowners across the country paying a national average cost of $265,000.

What is most expensive part of building a house? ›

Perhaps the most expensive part when it comes to building a home is the framing, which consists of wooden beams that make up the home's skeleton. Forbes states that high-quality lumber averages about $33,000 for a home in the United States. Metal stud framing systems begin around $20,000.

As a rule of thumb, it's cheaper to buy a house than to build one. Building a new home costs $34,000 more, on average, than purchasing an existing home. The median cost of new construction was $449,000 in May 2022.

Building outwards increases the footprint of the home and will require more excavation to dig up the yard. Maneuvering around power lines and sewer lines could add to your costs as well.

Drawbacks of a one-story house:

The big drawback of a one-story home is the same as its advantage in some ways: Everything is on the same floor, including your kitchen and bedrooms. That can mean less privacy and fewer opportunities to separate a cozy sleeping environment from, say, a bustling kitchen or family room.

Disadvantages of Two Story Homes

A stairway can eat up 100 square feet of living space and add to the cost. Lack of variety in ceiling height. Ceiling (and attic) heights are typically lower than single-floor homes of equal square footage and can lack varied heights room-to-room.

PRO – Less expensive per square foot – 2 Stories with owner's suites up are usually less expensive than ranches and 2 stories with owner's suites on the main. This is because those plans both need a larger foundation, so they require more concrete, more roofing and larger homesites.

North Carolina can be an affordable place to build a house, largely due to the state's low labor costs. Depending on the market, the average costs can range between $118 and $150 per square foot. In contrast, California averages about $203 per square foot, and New Jersey averages $188 per square foot.

The study shows the total building costs of a new property would cost about $461,000, while the median single-family home list price was $295,000. With a median land price per acre of $91,000 and a median lot size of 0.25 acres, it would cost around $23,000 for land and $396,000 for construction in Illinois.

Overall, the average cost of homes for sale in Florida is $406,988, with an average price per square foot of around $207. Therefore, it's currently more expensive on average to buy an existing home in Florida than it is to build a house.

It costs about $200 to $315 per square foot to build a house in North Carolina. So, you would have to spend $400,000 to $630,000 to build a 2,000-square-foot home in North Carolina. These costs will vary depending on the exact location, property types, labor costs, material costs, etc.

How much does it cost to build a 2000 sq ft house in NC? ›

Carolina Post Frame Barndominiums is the nation's leading provider of barndominium construction plans and blueprints. We provide you the ability to have everything you need to hire a local contractor and build one of our 'viral' barndominiums anywhere across the country.

It's the opposite, in fact: In general, building a new home tends to cost more than buying an existing one. According to a 2022 report from HomeAdvisor, builders can expect to spend about 5 percent to 10 percent more per square foot than buyers.

How big is 1,500 square feet, really? It's about the size of three two-car garages. You usually get three bedrooms, enough to stretch out for an office and a guest room or to care for your small family.

How much does it cost to build a 4 bedroom house? The average price to build a house in Florida with four bedrooms is between $388,000 and $465,000. This range is higher than the average Florida construction costs due the fact that four-bedroom houses are typically newer than those with three or fewer bedrooms.