Building a new house is an expensive undertaking. Gathering as much information as possible before committing to a contract is an essential part of home building.
New home construction in the USA averages between $138,937.00 and $531,394.00. The median average is $323,026.00 or around $150.00 per square foot of finished area–not including land costs. A new home is the biggest investment most people make during their lifetime. Here are details of where most of that money goes and suggestions about reducing some costs.
Location
One of the biggest housing cost variables is location. The national average cost of a building lot is $6.70 per square foot but it varies greatly depending on what state you live in. At the low end are states like Mississippi and West Virginia where prices are $2.00 or $3.00 per square foot. Wyoming and Michigan land costs about $10.00 per square foot. Rhode Island land costs $16.00 per square foot.
So, buying a 10,000 square foot lot varies considerably.
- Mississippi. $20,000.00
- Michigan. $100,000.00
- Rhode Island. $160,000.00
For reference, a 10,000 square foot lot is approximately 67 feet wide x 150 feet deep.
House Cost Breakdown
Building costs can be split into eight broad categories. All of the costs below are national averages. Building costs vary from state to state–just like land costs.
Land Costs
The average cost of a building lot is $6.70 per square foot. According to the National Association of Home Builders (NAHB), the average lot size is just over 15,000 square feet–making land costs around $100,500.00 for an unserviced lot. Additional costs include:
- Clearing and Grading. $1000.00 – $5000.00 to prepare the lot for building.
- Services. Hooking up to municipal water, sewer, and power can cost up to $20,000.00. Water wells and septic tanks can double the cost.
- Surveying. Surveys that define…