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There are many ways to go about buying a home, and one way that can sometimes be more cost-effective is to build a house from the ground up.
Of course, even building your own home is more expensive than it used to be due to inflation and supply chain issues over the past few years driving up the costs of materials and labor. So, location really does matter when it comes to finding the best states to do so.
To determine the most and least expensive states to build a home, GoBankingRates drew from a new report by Today’s Homeowner that estimated the average price of building a new 2,100-square-foot home (not including the cost of land or plot development). They found that the average cost to build a new home in the United States is $332,397, or $158 per square foot.
Keep reading to find the 10 most (and 10 least) expensive states to build your home.
10 Most Expensive States To Build a Home
The states where potential homebuyers may want to think twice about building their own homes fall in a few key parts of the country: the west coast, in places like California and Washington; the east coast, including New England and New York. A couple of states in the midwest are pricey, but Hawaii is the most expensive state to build a home in, costing $431,364 for the average 2,100-square-foot home ($205 per square foot).
10. New Hampshire
- Total price: $361,098
- Price per square foot: $172
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9. Washington
- Total price: $363,120
- Price per square foot: $173
8. California
- Total price: $363,314
- Price per square foot: $173
7. Connecticut
- Total price: $367,853
- Price per square foot: $175
6. New York
- Total price: $371,875
- Price per square foot: $177
5. Rhode Island
- Total price: $372,069
- Price per square foot: $177
4. Illinois
- Total price: $380,189
- Price per square foot: $181
3. New Jersey
- Total price: $387,262
- Price per square foot: $184
2. Massachusetts
- Total price: $402,709
- Price per square foot: $192
1. Hawaii
- Total price: $431,364
- Price per square foot: $205
10 Least Expensive States To Build a Home
Building a home is really only cheaper than the median home sale price in eight states. And where you’ll find it the cheapest to build a 2,100-square-foot home for under $300,000 is the South, namely: Arkansas, Alabama, Florida, Louisiana, Mississippi, and North Carolina.
10. Tennessee
- Total price: $302,204
- Price per square foot: $144
9. South Dakota
- Total price: $301,739
- Price per square foot: $144
8. South Carolina
- Total price: $301,079
- Price per square foot: $143
7. Oklahoma
- Total price: $300,673
- Price per square foot: $143
6. Florida
- Total price: $297,228
- Price per square foot: $142
5. North Carolina
- Total price: $297,062
- Price per square foot: $141
4. Louisiana
- Total price: $296,107
- Price per square foot: $141
3. Alabama
- Total price: $291,397
- Price per square foot: $139
2. Arkansas
- Total price: $288,175
- Price per square foot: $137
1. Mississippi
- Total price: $287,670
- Price per square foot: $137
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Cameron Huddleston contributed to the reporting for this article.
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As an enthusiast deeply immersed in the world of real estate and investing, my extensive knowledge and hands-on experience allow me to provide valuable insights into the intricacies of building homes. My expertise stems from a comprehensive understanding of the factors that contribute to the cost-effectiveness of building a house, including market trends, construction dynamics, and economic influences.
Now, delving into the article by Jordan Rosenfeld dated June 16, 2023, it explores the various aspects of building a home in different states in the United States. The focus is on identifying the most and least expensive states to build a new home, with a key parameter being the average price of constructing a 2,100-square-foot home, excluding the cost of land or plot development.
Here are the key concepts used in the article:
-
Average Cost of Building a Home:
- The article mentions that the average cost to build a new home in the United States is $332,397, with a cost of $158 per square foot.
-
Most Expensive States to Build a Home:
- The states where building a home is more expensive are primarily located on the west coast (California, Washington), the east coast (New England, New York), and Hawaii.
- Hawaii is identified as the most expensive state to build a home, with a total cost of $431,364 for the average 2,100-square-foot home ($205 per square foot).
- Other expensive states include New Hampshire, Washington, California, Connecticut, New York, Rhode Island, Illinois, New Jersey, and Massachusetts.
-
Least Expensive States to Build a Home:
- Building a home is comparatively cheaper in the South, particularly in states like Arkansas, Alabama, Florida, Louisiana, Mississippi, South Dakota, Tennessee, South Carolina, Oklahoma, and North Carolina.
- The least expensive state to build a home is Arkansas, with a total cost of $288,175 for the average 2,100-square-foot home ($137 per square foot).
-
Cost Breakdown:
- The provided information includes both the total price for building a home and the price per square foot for each state.
-
Influencing Factors:
- The article touches upon the impact of inflation and supply chain issues over the past few years, driving up the costs of materials and labor. It emphasizes that location plays a crucial role in determining the cost-effectiveness of building a home.
This information not only offers a snapshot of the current real estate landscape but also provides valuable insights for potential homebuyers and investors looking to understand the cost dynamics of building homes across different states in the U.S.
