When you imagine your dream home, what do you see? Do you envision a quiet and simple cottage surrounded by gardens? How about a massive chateau that rivals Versailles?

Regardless of what forever house you have in mind, it’s no secret that it’s an expensive endeavor to build a home. But how much can you expect to spend, and what factors contribute to the price?

Luckily there are quantity surveyors available to us that are experts in construction cost estimates and can accurately estimate the cost of your dream home. Keep reading to learn about what you can expect the average cost to build a home to be.

What’s the Average Cost to Build a Home?

According to the National Association of Home Builders, the average home costs around $154 per square foot. As the average American home is around 2,776 square feet, this means that the average person pays around $427,893 for their new house.

real estate investment
A female hand operating a calculator in front of a Villa house model

As you might expect, in most cases, it’s more expensive to build your house than to buy an equivalent existing house. However, as building your own home allows you to customize everything, you won’t have to spend as much money later on getting things how you want them.

What Factors Affect the Price?

Although there is a general cost to build a home, there are many factors that affect that price. Here are three of the biggest ones.


Your home’s location has a big effect on the cost, with urban areas requiring you to dish out more money on construction costs. Although rural areas are cheaper, you may have to spend extra money on things such as a septic system and concrete to connect to the road.

The state you build in also affects the price. Hawaii and California are two of the most expensive states to build in, while states such as Alabama and Oklahoma are cheaper. Visit Hollandhomesllc.com to see a list of homes in Birmingham, Alabama.


Of course, a huge factor contributing to the price you pay is how big of a house you build. As mentioned, the average cost per square foot is $154. This means that a modest 1,000 square foot home will set you back around $154,000.

If you plan on building a five-bedroom, 4,000 square foot mansion, you can expect the price to hover around $616,000.


Aside from square footage, the number of amenities you get can cause the price to shoot up as well. Expensive roofs, foundations, and porches can all tack on thousands of dollars to the price you pay.

Inside your home, going with high-end light fixtures, appliances, and finishes will also increase the cost. Granite, marble, and stone are some of the biggest culprits.

Different Dreams, Different Costs

If you have a dream house in mind, understand that the cost to build a home depends on many different factors. However, as this guide explains, there is an average cost to build a home that can give you an idea of what to expect.

Young couple moving in new house, drinking coffee.

Do you now have a better understanding of what goes into the cost to build a home? Before you go and start designing your dream house, make sure to check out some of our other blog posts for more guides and tips.