What Factors Affect the Cost to Build a House? A Guide

With the housing market the way it is, it makes more sense to build a home than to buy an existing one.

Photo by Greg Rivers on Unsplash

You won’t have to compete with any other buyers or get into expensive bidding wars.

Furthermore, building a home allows you to customize your new house however you want. You can choose everything from the layout and size of the rooms to where individual lights and outlets are located.

But how much does it cost to build a new home? What factors affect your overall price?

Photo by vu anh on Unsplash

We’re here to lay it all out for you. Keep reading for everything you need to know about a new home construction cost.


First, and perhaps most obviously, your cost to build a home will be heavily influenced by the size of the house you want. The more square footage you have, the more materials it will take to build the home.

A larger home means more wood for structural framework, more foundational concrete, more flooring materials, more insulation, more windows, more drywall, etc. If you’re looking to cut costs, build a house that’s conservatively sized.


When it comes to buying homes, location is everything. Buying a home in a well-respected and sought-after neighborhood means paying inflated prices. However, these types of neighborhoods are often safer, cleaner, and located near better schools for your children.

The same principles apply to the cost to build a home. Building a home in a nice neighborhood will likely cost you more money than building one in a distressed part of town.

Photo by vu anh on Unsplash


Next, let’s talk about how the features you choose will affect your house construction costs. Home features include things like garages, finished basements, the number of bathrooms and bedrooms, and more

You might also opt for outdoor living spaces, such as patios, fire pits, pools, gazebos, and decks. Finally, think about the appliances you want in your kitchen, bathroom, and laundry room. Click here for more info on how to estimate the costs of your new home.


The cost to build your home will be affected by the types of materials you want. There are low-budget building materials that can help you save money. However, higher-priced insulation and windows will help you keep your energy costs low.

Photo by R ARCHITECTURE on Unsplash

There are also aesthetic materials to think about. These include things like flooring, countertops, cabinets, vanities, ceiling fans, trim, accents, light fixtures, and more. While seemingly small, all of these things together define your home.

The Building Company

Finally, if you want to build a home, you’ll need to hire a construction company to get the job done. Don’t make this decision lightly, as the contractors you choose will affect more than just the outcome of your home.

Different home building companies have different costs. Some are more expensive than others.

However, we don’t recommend hiring the cheapest builders you can find. They may lack expertise, experience, and reputation in the community. A more expensive builder might create higher-quality homes and offer better home warranties.

Photo by R ARCHITECTURE on Unsplash

How Much Will It Cost to Build Your New Home?

If you’re looking into building a new home, we hope our guide helps you determine your potential costs. If you’re working with a limited budget, be sure to save where you can and avoid paying too much for fancy materials or oversized layouts.

And if you want more homeowner advice or consumer insight, check out some of our other articles while you’re here. Our blog is full of helpful content created for readers like you.


More Reading

Post navigation

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *