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How Much Does It Cost To Build A New House?

Allen Brown by Allen Brown
November 18, 2022
in You May Also Like
Reading Time: 3 mins read
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It’s no secret that building a house is expensive. But just how expensive, exactly? That depends on where you live. The cost of construction ranges from $60 to $240 per square foot, with the average coming in at around $115 per square foot. Materials account for about half of that price tag, while labor accounts for the other half. 

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Of course, those are just averages. Your house may end up costing more or less than that, depending on your location and the specific materials and labor involved. So what factors influence the cost of construction? Let’s take a look…

Consider The Location

The first, and perhaps most obvious, factor to consider is location. Construction costs vary widely from place to place. For example, the cost of construction in San Francisco is about 50% higher than the national average, while the cost in Omaha is about 20% below the average. When looking at what is the cost to build a home in Vancouver you’ll notice that the cost is slightly higher than the Canadian average. There are a number of reasons for this regional variation. Firstly, land costs vary widely from place to place. In highly sought-after areas like San Francisco, land can be extremely expensive, while in other parts of the country it may be relatively affordable. 

Consider The Cost Of Labor

The cost of labor also varies depending on location. In some areas, like the Northeast, unions are prevalent and labor costs are high as a result. In other parts of the country, like the South, non-union labor is more common and therefore cheaper. Finally, the cost of materials can also differ depending on location. For example, lumber is typically more expensive in the Northeast than it is in the South due to transportation costs. All of these factors must be considered when trying to determine the cost of building a house in a particular location.

Consider The Size Of The House

Another important factor to consider is the size of the house. The cost per square foot will decrease as the size of the house increases. This is because many of the costs associated with building a house, such as labor and materials, are fixed costs that don’t change much based on the size of the house. It’s important to note, however, that the cost per square foot is just an average and doesn’t necessarily reflect the actual cost of the house. The total cost of the house will also be influenced by the specific materials and labor involved, as well as the location.

Consider The Materials Used

The type of materials used can also influence the cost of construction. For example, a brick home will typically cost more to build than a wood frame home. This is because bricks are more expensive than lumber. Similarly, a home with a concrete foundation will typically cost more to build than a home with a crawl space foundation. This is because concrete is more expensive than wood.

There are many factors to consider when trying to determine the cost of building a house. The location, size, and materials used can all have an impact on the final price tag. It’s important to consult with a professional in your area to get an accurate estimate of what it will cost to build the home of your dreams.

Author

  • Allen Brown
    Allen Brown

    The information contained in this article is for informational purposes only and is not in any way intended to substitute professional advice, medical care or advice from your doctor.

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