How Much Does it Cost to Build a New Home?

Looking to buy a new home but not finding what you want in the available inventory? Whether you’re looking to build a home because you have specific preferences or just because it’s always been a dream of yours, new construction is a great way to check off all of the boxes that you’re looking for in a home and design a space that perfectly meets your needs. And just as you would budget for a home purchase, you’ll have to determine what you can afford—which is why it helps to figure out just how much it will cost to build a new home.

There are a lot of factors that affect the cost to build a new home. Even before you get to things like quartz counter tops and heated bathroom floors you have to consider the costs associated with things like location, lot, construction materials, labor, and closing fees. And while it’s certainly not cheap, it is possible to build a new construction home while staying in the same budget you would set for a pre-built home. You just have to make smart decisions along the way.

Below, we’ll go over all of the costs that you need to consider, with tips for saving money along the way on your new home project.

Developer or No Developer?

Permits and Inspections

Engineering and Architecture

Foundation

Framing

Exterior Features

Interior Features

Major Systems

Landscaping and Other Outdoor Features

Total Cost to Build a New Home

Knowing all of the separate costs to build a new home is helpful, but how does it all add up? The average cost to build a new home ranges from $150,228 to $443,249. The large variance is due to factors like location, size, and interior and exterior feature choices. Always leave room in your budget for unexpected fees like permit delays, overhead expenses, and closing costs (since there’s no official seller, it’s the buyer—i.e. you—who is responsible for these).

As for whether you can afford to build new construction, work with a financial advisor and architect to figure out what you can budget and how far you can stretch it. If you’re determined to make a new home happen, you can hopefully find a way to do so.

Note: Unless otherwise noted, new home build costs are taken from data provided by the National Association of Home Builders.