Average Cost To Build A House Breakdown Of Expenses

Kevin Brown

Average Cost To Build A House: Breakdown Of Expenses

If you want to know the average cost to build a house, you’ve come to the right place. There is a wide range in house prices both for buying and building houses in the United States, but there is always an average.

Average Cost To Build A House Breakdown Of Expenses

Let me clarify that the average and the most common prices are not the same. The average is calculated by adding all the house prices together and dividing them by the total number of houses, while the most common price is the one that occurs most frequently.

Today, we’ll focus on the average cost, which represents the middle number. It provides an estimate for what both upper and lower class individuals might pay. Now that this distinction has been made, let’s proceed.

Average Cost To Build A House

Average Cost To Build A House Breakdown Of Expenses

The average cost to build a 2,800 sqft home was $428,000 in 2017. However, this single number lacks practical value. What if you desire a larger or smaller home?

Where can you make cutbacks?

These inquiries will be addressed as we delve into the significance of this number. Let’s consider a 2,800 sq ft home, a size larger than most and yet quite common in America.

The average house size relies on numerous factors, particularly the state you reside in. Across all states, the average house size ranges from 1500 to 2500-sqft. However, the price you pay varies significantly.

In Massachusetts, the cost is nearly $300/sqft, whereas in Arkansas, it is around $100/sqft. These are statewide averages, as we will later discover that the city matters even more than the state does.

Construction Cost – $237,760 – 55.6%

Average Cost To Build A House Breakdown Of Expenses

This is the largest sum you’ll pay because it’s what matters most. It encompasses every aspect of your home, including plumbing, electrical, and landscaping.

Site Work – $15,903: This covers necessary permits, fees, and inspections before construction begins. It constitutes approximately 6.7% of the total construction cost.

Foundations – $25,671: This involves creating the foundation of the house, from excavation to laying the foundation for your home. It accounts for just over 10% of the construction cost.

Framing – $41,123: Work on the structure of the house, constituting a significant portion of the construction cost.

Framing is crucial, including the room and wall framing, as well as ensuring a level frame is in place. Trusses and sheathes are also included, comprising about 17% of the construction cost.

The exterior costs $33,066, depending on the doors, windows, roofing, and siding selected. The price largely depends on the chosen items’ quality, typically making up about 14% of the total construction cost.

Utilities, such as plumbing, electrical, heating, and cooling, are essential for any inhabited home. This averages to about $32,746, accounting for around 14% of the initial construction budget.

Interior finishes amount to $67,939.

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Interior walls, painting, appliances, flooring, cabinets, and more. Everything inside your home that isn’t furniture will be in this budget. It’s a significant part of your construction cost at almost 30%.

Outdoor – $16,591

This includes driveway paving, landscaping, and everything needed to make your lot look like a yard. It usually amounts to about 7% of the construction cost, varying depending on the desired work.

Unexpected Costs – $4,722

If something goes wrong, this is where the money comes from. You can always expect unexpected costs, as ironic as that sounds. It can be about 2% for these costs.

Lot Cost – $91,996 – 21.5%

Average Cost To Build A House Breakdown Of Expenses

The low cost refers to the amount spent on buying land or a lot for building a house. If you already have the land, you can consider that part completed, giving you a 20% discount, as that’s about the average cost of a lot.

Financing Cost – $7,637

This is the amount you’ll spend on getting a loan or financing. In order to obtain money, you’ll need to pay a fee. This may or may not include any interest paid over time.

General Expenses – $21,835

Predicting general expenses and overhead costs is never easy. For business, overhead costs can include labor. But when building a house, overhead costs usually go directly to the contractor’s own costs.

Marketing Cost – $5,314

You may need to pay marketing costs to the contractors and businesses you hire, as they have marketing teams. This team played a role in finding you or vice versa, so part of your budget goes to them.

Profit: $45,902

This is the additional profit that contractors make, which you pay them on top of their expenses. Usually, contractors receive around 10% of the total project cost.

Commission: $17,448

When buying or selling a house, you pay a commission fee to your realtor. Both the seller’s and buyer’s realtors receive a portion of this fee, typically ranging from 4-6% of the property’s cost.

Average Cost To Build a 1500 SQ FT House

Average Cost To Build A House Breakdown Of Expenses

A 1500 sqft home is considered normal, even though the average home size is over 2000 sq ft. Let’s explore the average cost to build a 1500 sq ft house. This is simple since we already know the cost to build a 2800 sq ft house is $428,000.

Thus, the cost of building a 1500 sq ft house would be around $230,000. This is a more manageable budget, and it’s a popular choice for homeowners.

To estimate the cost of specific projects and construction for a 1500 sq ft home, you can cut the prices in half. For instance, utility costs will be approximately $16,000.

In terms of the average cost per sq ft to build a house, there is no need to worry.

Average Cost To Build A House Breakdown Of Expenses

The average cost of building a house is approximately $150 per sq ft, varying depending on utilities, projects, and mishaps. Generally, expect to pay between $100 and $200 per sq ft for average quality materials.

To calculate your home’s cost, use a simple formula: divide the cost of the item by 2800 and multiply it by the square footage of your new home.

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For instance, the average interior finish cost for a 2800-sqft home is $67,939, making interior finishing around $24 per sqft. Multiply this by your square footage for a rough estimate.

How much does it cost to build a house from scratch?

Average Cost To Build A House Breakdown Of Expenses

Building a house involves creating a foundation, walls, roof, and interior components. However, individuals who opt for a modular or pre-built home are not starting from scratch.

Cost of Building a Barn

Building a house within an existing barn is one option, while constructing a barn from scratch is another. The cost varies for each, as they have different requirements and purposes.

The cost of building a barn typically ranges from $10,000 to $150,000, with an average of around $50,000. This estimate does not include the house portion. Adding partitions, insulation, and extra utilities for a house can almost double the cost.

Cost of Building a House (without land)

If you don’t have to buy land for your house, you can significantly reduce the cost. Typically, it’s around $50 to $200 per square foot, depending on the size of the house. Let’s say you’re spending an average of $130 per square foot.

Multiply that by the square footage, for example, 1500sqft would be $195,000 on average.

Now let’s consider the cost of building a house with a basement. The cost of the basement can range from $10 to over $100 per square foot, depending on its complexity.

The area you live in and the year you are building matters. Concrete costs can add up and this is the primary cost of building a basement with your home. It also needs to be done first before you begin building your home. Despite what logic may lead you to believe, a two-story house doesn’t exactly cost twice as much as a one-story house.

This is because you won’t be paying for the foundation twice among other things. But it is a good idea to double the price if you are figuring a budget because it’s better safe than sorry. In general, you’ll pay a little less for a two-story house per square foot, but it will be just about the same per square foot.

Average Cost To Build A House Breakdown Of Expenses

When it comes to building a house, people often think of wood as the primary material. However, there are actually many different materials that can be used for building houses.

Wood is indeed the most popular material and is used in almost every house around the world in some way. However, other materials such as concrete, stone, brick, and plaster/adobe are also commonly used. The choice of material depends on where you live, and even cob can be a popular option.

But overall, wood remains the most popular choice.

In terms of strength, the strongest material for building houses varies depending on the specific requirements.

Wood is a reliable material, but it’s not the strongest. It is not fire-resistant, and it can be easily cut, broken in half, and warped. While masonry work is good, steel and concrete are the two strongest materials to build with. Steel has a slight edge over concrete.

When it comes to the cheapest type of house to build, wood is one of the cheapest building materials. By building a simple box and insulating it with wood, you can save money. Add shingles to the roof for extra savings.

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As for the inside, vinyl is the cheapest flooring option and plywood and drywall are the cheapest wall coverings. Pair these together to maximize your budget. Add inexpensive touches.

The Most Eco-Friendly Material To Build A House

One of the most eco-friendly building materials is rammed earth, which is similar to cob. However, it’s not an easy DIY project and requires time and attention to ensure safety. There are other eco-friendly options available.

Recycled materials are great for building and if you’re looking for something easy to use, biodegradable, and sustainable, consider bamboo and other sustainable woods. Oak, mahogany, and teak are also good choices.

Average Cost to Build a House in Other Countries

Average Cost To Build A House Breakdown Of Expenses

An interesting Singaporean calculated the cost of building apartments in various countries and cities. The chosen countries were different from what most Americans would choose. Here’s what they found:

– USA: $150/sqft

– Vietnam: $55-70/sqft

– Singapore: $120-140/sqft

– Shanghai: $60-65/sqft

– Seoul: $120-150/sqft

– Manila, Philippines: $80-90/sqft

– Macau: $200-240/sqft

– London: $300/sqft

– Kuala Lumpur, Malaysia: $30-40/sqft

– Jakarta, Indonesia: $65-70/sqft

– Hong Kong: $300-350/sqft

Brunei: $75-100/sqft Beijing: $55-60/sqft Bangkok, Thailand: $55-70/sqft

It’s safe to assume that the provided prices are accurate for other cities as well, based on their accuracy for the USA and London. Notably, the prices varied significantly across different cities within the same country, indicating that the cost of constructing a house or apartment depends more on the specific area within the country rather than just the country itself.

Average Cost of Buying a House

Average Cost To Build A House Breakdown Of Expenses

People often consider building a house because they believe it’s cheaper than buying. However, recent studies show that buying a house costs about $123 per square foot. While building a house is around $150 a square foot, it isn’t always more expensive. When buying, the price is set, but when building, you have the flexibility to cut costs where needed. The price range for buying a house varies greatly, from $24/sqft in Detroit to $800/sqft in San Fran.

In more desirable areas, houses are more expensive. If you prioritize a nice house over the neighborhood, building can provide a considerably better option for less money.

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