BUILD RITE

How Much Does it Cost to Build a New Home?

The average cost to build a house in 2023 was $308,588. Keep in mind, you also need to buy and prep the land the home will go on. The total cost of building a custom home can also vary quite a bit depending on the building materials you use, the layout and number of rooms, labor costs and what region you're located in.

A very simple, small home can be relatively affordable to build. A more high-end, luxury home with multiple stories or extravagant architectural design will, naturally, be much more expensive. Take a look at some of our completed projects.

The Average Cost To Build A House

Let’s take a look at the different steps that make up the home building process and break down how much each step typically costs. Keep in mind these costs can fluctuate with demand for land, materials and labor.

Buying And Prepping Land ($40K - $80K)

If you're buying a lot on your own and then building a custom home, you can expect to pay around $75,000. First, you’ll need to purchase a plot of land for your new construction home in Michigan.  The average cost of 1 acre of land in Michigan is around $5,850 per acre. Then, it’s $20,000 - $50,000 to clear the land, have land leveled, run utilities, and put in a driveway before breaking ground on construction.

Drawing Up Plans and Getting Permits ($7K)

Once you’ve got your land, your general contractor and subcontractors will start preparing to build the house. This stage includes having an architect draw up floor plans for the home and purchasing all the necessary permits. On average, house plans cost around $5,000 depending on the complexity of your house. Building permit requirements will differ between locations, but on average cost between $1,500 and $2,500 based on the types of building permits and inspections you may need.

Prepping And Building the Foundation ($10K)

After all the prep work is complete, a crew will come and break ground digging out a space for your home’s foundation. Then, they’ll pour concrete according to which type of foundation

you’ll have: slab, crawl space or basement. Typically, a concrete slab foundation is the cheapest, followed by the slightly more expensive crawl space and the most expensive basement foundation. Which foundation you choose will depend on your budget and preferences. Each type has its pros and cons, so be sure to do your research.

Framing ($35K)

Your home’s floors and walls will be framed and then covered with plywood.  Then, the trusses that will frame the roof are built and placed on top of the wall frames. All in all, this process will cost between $20,000 – $50,000, depending on size and floor plan, averaging around $35,000.

External Elements ($50K)

Once framing is built, all the necessary external elements of the walls, roofs and openings will be

installed. This means exterior finishes like siding, windows, doors, and roofing. In total, this will cost around $50,000.

Installing Plumbing and Electrical ($50K)

Now it’s time to install all the major systems that make your home hum with water, air and electricity. At this stage, plumbing and HVAC systems will be installed, and an electrician will wire your home and get you connected to the power grid. This step is about getting all the behind-the-scenes stuff like pipes and ducts set up.

Interior Finishes ($100K+)

This can easily be one of the most expensive parts of the home building process, and the exact cost will depend on your personal preferences. Interior finishes includes adding insulation, drywall, flooring, interior doors and all the basic components that will turn the newly constructed structure into a livable home. Cabinets and countertops will be installed, walls will be painted and appliances will be hooked up. Interior finishes can vary greatly depending on your taste.

Landscaping & Outdoor Space ($7,500)

The final step includes any other additions you want made to your property, including any outdoor spaces or other features. An outdoor living space typically ranges from $4,500 – $12,000. On average, a large outdoor deck will cost around $7,690. If you’re looking for a smaller deck, this cost could decrease depending on the materials and labor involved in the building process. Of course, special features can raise the cost of your outdoor space considerably. In-ground pools, for example, can cost anywhere from $36,000 to $100,000, while outdoor kitchens can cost around $13,840. Keep in mind that all these construction costs are averages. Construction costs can fluctuate greatly depending on the availability of materials. With more accurate quotes, you can figure out how much house you can afford and what the final square footage could reasonably be. It’s wise to leave yourself a little bit of wiggle room in your budget in case things end up costing more than you originally budgeted.

Want to learn more about the new home construction process? Call us at (269) 234-1957. Feel free to contact us about any questions.

Build Rite Construction offers custom home building and remodeling services. We have an entire, in-house, insured crew who can assist you from picking a building site and architectural design services to completing your dream home. We also offer years of experience and supply many finish selections to add ease of running around picking out your finishes. Feel free to give us a call; we would be glad to offer a consultation. You can visit us in our showroom and get a chance to get to know us. We understand pricing is always important but getting a feel for who you’re trusting with one of the big ticket decisions in life is essential. Let us help make your vision of a new home a reality.