...of Good Money Management

Talk It Out:
The Cost of Building a House


"Could you please tell me the approximate cost to build a 1300-square-foot home in today’s market? Thanks." ~ Carol


Responses:

"So much of the cost of building a new home is specific to the market in which it is being built.  The varying costs of labor, as well as the availability of building materials will greatly impact the cost of construction, so any generalized estimate on the cost would probably not be very helpful, since costs will vary according to your location.  To get an accurate estimate that is specific to your area, contact several local builders and ask them to give you a per-square-foot construction estimate." ~ Anonymous


"In our part of the world (Colorado and the mountain states), the average low point for building a basic home without super-fancy finishes starts at about $100 per sq. ft. Both my father and brother are realtors and that is what they have estimated by speaking with builders, contractors and investors. That also does not take into consideration the cost of the land. That is separate. I'm curious to know what other parts of the country cost to build a home." ~ Cara in Colorado


"I’m guessing you’ll get many replies telling you that the cost of building a 1300 square foot house depends upon where you want to build, and they are absolutely right. Zoning laws, building codes, and material and labor costs can make a huge difference in what your dollars will buy. However, I have seen fairly recent figures suggesting that the average US home costs $80-$100 per square foot to build. You can bring costs down by planning intelligently, salvaging some materials, doing some of the work yourself, etc. However, if you are going to need commercial financing, you will probably need to proceed as quickly as possible to meet draw deadlines, so you will be able to do fewer things on your own. Building frugally is basically a process of trade-offs!" ~ Janice 


"The word out there is wait for a little while longer for the cost of building materials to come down, unless you HAVE TO BUILD because of an emergency. With all the hurricanes and natural disasters in Florida and the Gulf Coast and all the wild fires out west; the cost of building materials have skyrocketed as folks scramble (and for any price!) try to rebuild their shelters and their lives.

So if Carol can be patient, then perhaps her family can take their building plans to a local Home Depot or Lowes and start price-shopping for material costs and talk with local builders to what may be the situation in their locale." ~ Colleen in GA


"In our area (Mississippi), building costs are running around $100 - $125 per square foot for new space, but I also know that those costs could increase. With hurricane Katrina and the rising cost of gasoline, many building supplies are costing more." ~ Barb



Editor's Note: Thanks to everyone who took the time to respond.

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