How Much Money Is Needed To Build A House? Gauging How Much To Save


Building a home is one of the most significant investments people make in their lives. The main question to ask yourself before the building is, how much money is needed to build a house? You can’t afford to spend beyond your budget, so it’s essential to ensure your home is as cost-effective as possible.

What Goes Into The Cost Of Building A Home?

The average figure quoted for constructing a house is usually based on a rate per square foot. Generally, between $125 to $150 per square foot. But there’s never a one-size-fits-all figure because homes are different, and so are the costs. The total cost of building your house, therefore, will vary depending on factors such as:

  • Site work
  • Foundation
  • Exterior finishes
  • Framing
  • Clean up
  • Interior finishes
  • Heating and cooling
  • Plumbing and electrical

Moreover, there are also specifics of your home. That includes the specific layout of the house, the materials you’re going to use and whether or not you want to add a pool, deck o porch. All these factors make it difficult to quote an accurate figure.

Ultimately, the cost of building a house depends on a broad range of factors. Be sure to research all your options thoroughly and get an accurate estimate of the costs involved before construction begins. Doing your due diligence will ensure your home is built on time and within your budget.

Additional Factors That Affect The Cost Of Building

Building A House


Prepping the land for construction is a critical first step, and can vary in price depending on whether the property is already prepared for building or you’ll need to hire a pro to clear and excavate.


Costs vary greatly depending on where you want to live, cities, for example, are more expensive than the rural areas or suburbs as they’re more desirable and have higher demand.

Fees, Permits and Inspection

Construction Plan

The construction industry has plenty of regulations that are continually being updated and reviewed. You’ll have to spend some money to get the right licensed and get your building up to code.

Number of Stories

Additional stories require additional design work and construction, which will cost more.


The materials used in constructing your house will have a significant impact on the cost. Everything from the interior fixtures/finishes to the roof will affect the total cost of the building.


You’ll have to hire different professionals in each disciple – roofers, electricians, plumbers and so on- all these experts have separate charges that will impact your total building costs.

Unforeseen Expenses

Like most construction projects, building a home will always have unforeseen expenses. As such, make sure you have some extra cash on hand and try to budget about 5% of the total costs for unexpected costs.

Bottom Line

There are plenty of other factors that affect how much you’ll end up paying to build your house. However, it all boils down to doing your due diligence. Whether you’re shopping for a mortgage or looking for building materials, be sure to do some research and get the best deal available. By hiring highly skilled, competent professionals, for example, you’ll make the process as seamless as possible.

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Preeti Shah is a person who loves checking out different styles and designs of houses. She took interior designing in college and is practicing in the field of home improvement for five years now. In her spare time, she is usually searching the web for interesting and fascinating home designs.


  1. The average cost to build a home in Arizona ranges from $170,000 to $480,000 for a 2,000 square foot home. Depending on the location, square feet, and customization of the house, that price can increase significantly, but the general rule is to calculate the price per square foot. In Arizona, the average cost per square foot is $170. Learn more


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