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New Home Construction Costs – How much will you pay?

House Market Solutions Home Buying New Home Construction Costs – How much will you pay?

new home construction costs

The cost to build a new house continues to rise, especially after the passing of the 2008 recession. Some of the factors that contribute to these rising costs include the cost of raw material, demand for new homes, and more.

In 2018, the average cost to build a new house was $291,161. If you were to build a 2,000 square foot home, this would cost you about $150 per foot. Taking into account other areas of the United States, the range for building a new home was between $147,124 and $436,576.

Houses in the Bay Area, California

Cities like San Jose and San Francisco are located in one of the most expensive parts of the country. In 2018, 1,000 square foot homes were selling for over $1 million.

While the market has cooled down since last summer, new home construction costs are still quite expensive. For a 2,000 square foot home, you can expect to pay between $250 and $300 per square foot. That comes out to more than $500,000 for a newly built home.

 

New Home Construction Costs in Florida

While not the cheapest state in the country, new home construction costs are nowhere near as expensive as they are in California.

In Florida, the average cost to build a new 2,000 square foot home is $222,000. This is based on a per square foot price of only $111.

While building a home in Florida can be an attractive endeavor, it’s important to remember that hurricane season begins in mid-May and ends in November. Do some research of your own about the safest building spots in the state before you break ground.

 

The Time of Year

Choosing the right time of year to build your house can make a difference in how much you pay.

If you live in an area that has mild winters, one of the best times to begin building your home would be at the January or mid-February. Construction companies aren’t typically busy during this time, and raw materials could be cheaper at the start of the year.

Starting construction in the fall is also optimal. Business slows down for home builders right around this time.

 

The Cost of Materials

The most significant determining factor for your new home construction costs is the cost of raw materials. You can speak with either a local contractor or local insurance agent to figure out the per square foot cost at a particular time.

Speaking with an insurance agent can come in handy because they’re familiar with reconstruction costs, a number used to calculate how much it would cost to rebuild a house if a natural disaster destroyed it. The amount they use for this calculation is usually very accurate for insurance purposes.

 

Point of Decision
Image by Gerd Altmann from Pixabay

Building versus Buying

If you’re still trying to decide whether or not you want to build your house or simply purchase one that’s already constructed, take into consideration the available inventory in your area. If you’re unable to find the home of your dreams, you may want to hire a builder to create one based on your exact specifications.  The National Association of Home Builders maintains a list of active members as well as a consumer section for more in-depth education.

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