Follow the Money: the Cost of Building a Single-Family Home

The typical new home costs about $237,760 to build, and about $427,892 overall for the buyer, according to recent National Association of Home Builders survey data.

Breaking down the costs, $190,132 goes toward the cost of the average 0.4 acre lot and contractors’ overhead and profits, per the residential construction companies surveyed. Inside the average 2,776 square foot home, 29 percent of the cost covers interior finishes like fixtures, fireplaces, cabinets, countertops, insulation, drywall, doors, painting, and more. Framing accounts for 17 percent, and the third highest cost inside the home is a tie between exterior finishes like roofing and windows (14 percent) and systems rough-in like electrical and HVAC (14 percent), reports The New York Times.

Finding a house that perfectly fits your needs can be challenging, to say the least. Chances are, you’ll have to compromise. A custom-built home, however, eliminates compromise: Not only will you get exactly what you want, the thinking goes, but you’ll have brand-new materials and systems that won’t need repair in the near future. But how much will it cost — and what will you really be paying for?

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