It costs anywhere from $220,000 to $550,000 to build a custom home in Arizona. And that’s just for construction! Land costs can add a hefty $4,000 to $200,000. Let’s not forget about the rising costs of permits, materials, and labor fees.
In contrast, buying a new construction home in the Copper State is a faster and more cost-effective option. With a 7.7% increase in new listings and 29.9% of homes with price drops, now is the perfect time to find your dream home!
Cost Breakdown of Building a Home in Arizona
The average house size in Arizona is around 1,800 square feet. Here is a cost breakdown:
| Cost Head | Average Costs |
| Land Cost | $4,000 – $200,000 |
| Water and Sewer Inspections | $100 – $3,000 |
| Building Permits | $1,000 – $2,500 |
| Foundation | $10,000 – $25,000 |
| Framing | $20,000 – $40,000 |
| Exterior Siding | $8,000 – $20,000 |
| Roofing | $7,000 – $15,000 |
| HVAC | $8,000 – $15,000 |
| Plumbing | $8,000 – $20,000 |
| Electrical | $7,000 – $15,000 |
| Drywall | $6,000 – $12,000 |
| Painting | $4,000 – $8,000 |
What Is the Cost Per Square Foot to Build a House in Arizona?
Arizona home construction costs depend on the square footage and number of bedrooms in your home:
Material Cost of Building a House in Arizona
You can expect to spend about $50 per square foot on material costs. Here are the material expenses you need to consider to build your home in Arizona:
- Framing Materials: Foundation, lumber, and steel beams will require about $12,000 to $20,000.
- Roof Installation: The roofing cost depends on the type of material you select, the roof’s slope, and the size of your home. Here are the Arizona home roofing prices per square foot for various materials:
*Source: Promatcher
- Exterior Finishes: Prices may vary based on your choice of exterior. On average, it ranges from $12,000 to $60,000.
- Insulation: Fiberglass, drywall, and foam insulation help regulate the temperature inside your home. It costs $2,000 to $12,000 for the installation.
- Windows & Doors: If you hire a professional to install windows and doors, it will cost from $10,000 to $30,000. If you go DIY, you could save $2,000 to $6,000.
- Flooring Materials: The cost of wood flooring installation in Arizona ranges between $7 and $17 per square foot.
- Cabinets & Countertops: Features like granite countertops and teak wood cabinets in kitchens may cost between $150 and $900 per square foot.
- Plumbing Fixtures: The cost to install sinks, faucets, showers, and PVC pipes throughout a home is between $1,000 and $15,000.
Labor Cost to Build a Home in Arizona
A contractor can help you hire laborers and professionals for the construction process. Their work and associated costs include:
| Professionals | Hourly Rate* |
| Flooring Installers | $22.28 |
| Roofers | $24.82 |
| Painters | $21.19 |
| Brick Masons | $26.25 |
| Landscapers | $19.20 |
| General Contractors | $21.94 |
| Plumbers | $28.41 |
| Carpenters | $24.57 |
| HVAC Technicians | $28.95 |
| Structural Engineers | $42.60 |
| Electricians | $29.24 |
What Are the Indirect Costs to Build a House in Arizona?
Indirect costs are incurred before the construction starts or after you move into the house. They include land costs, permit costs, interiors, etc.
1. Land Acquisition Costs: $9,200 Per Acre
Before you build your house in Arizona, you need to shop for land. The costs are:
- Purchase Cost: The average price per acre in Arizona is $4,200. This depends on the size and location of the land.
- Preparation Cost: You must clear and level the land before the construction. This can cost anywhere between $500 and $5,000.
2. Arizona Home Building Permit Costs: $5,000
The cost per square foot to build a home in Arizona includes permit fees. Construction or building permits are legal documents that authorize the construction process.
Permit costs and building codes are usually based on the construction type, occupancy type, home building area, and project scope. Some permits you may need, along with their average costs, are:
- Building Permit: $1,000 to $2,000
- HVAC Permit: $250 to $400
- Plumbing Permit: $50 to $500
- Electrical Permit: $10 to $500
3. Home Interiors: $20,000
Before you move into your new home, you’ll need furniture, electronics, kitchen appliances, and bathroom essentials.
The costs will depend upon your preferences and the quality of the finish. For a 2,000 sq ft home, you should budget at least $20,000 for interior furnishings.
How Can You Finance Your Home Construction in Arizona?
1. Home Construction Loans
You’re required to have a high credit score (above 480) and enough cash to make a 10% down payment of the project cost.
The two most prominent home construction loans are:
- Construction-to-Permanent Loan: This loan covers land purchases and home-building costs. It is converted to a conventional loan after the construction is complete, and you move into the house.
- Construction-only Loan: It only covers the cost of home building. Your entire loan amount will be due after your home is ready. You can pay back the loan in cash or take out a mortgage.
2. Home Equity Loan
If you have home equity, you can finance some or all of your new home’s construction with a home equity loan.
Your home equity is the difference between your property’s fair market value and the remaining loan amount.
Is It Cheaper to Build or Buy a House in Arizona?
It is usually cheaper to buy a home than to build a new one. However, by building your own home, you have the freedom to customize it to your needs.
The average price to build a house in Arizona is $295,580. This amount can go beyond $550,000 if you include land costs, excavations, permits, and other expenses. Moreover, new home construction can take up to 9 to 12 months.
On the other hand, you can buy a home in Arizona for $445,400. You can also easily find homes for sale in Arizona under 400k in 1.5 to 2 months. So, buying a turnkey home is not just cheaper but also faster in the current Arizona housing market.
Cost to Build vs. Cost to Buy in Arizona Cities
Let’s compare the cost to build a house and the cost to buy a house in Arizona’s most popular cities:
| City | Average Cost to Build (Including Land) | Average Cost to Buy |
| Phoenix ($130 per sq ft) | $590,000* | $451,000 |
| Tucson ($140per sq ft) | $523,872 | $325,000 |
| Arizona City ($120 per sq ft) | $560,000* | $260,000 |
*The average costs have been calculated for an average-sized home of 3,000 sq ft.
Clearly, the cost to build a house is higher than the cost to buy one. If you buy a home for sale in Arizona, you can move in quickly and renovate it as you wish.
Disclaimer: The content in this blog post is for informational purposes only. It should not be construed as advice or recommendation. Houzeo does not provide any legal or financial advice. The figures mentioned in this blog post are the estimated average costs for the state/city in question. They are applicable as of the date the blog was written. Actual costs may vary depending on various factors, including location, specific building plans, materials used, labor costs, permits, and other local factors.
Please consult with local builders, contractors, and architects to obtain accurate and up-to-date pricing information for your specific project.
Frequently Asked Questions
What does it cost to build a house in Arizona?
It costs $220,000 to $550,000 on average, excluding the land cost. This will vary depending on location, property type, labor expenses, material costs, etc.
How much does it cost to build a house per square foot in Arizona?
Building a house in Arizona costs about $110 to $200 per square foot. Home-building costs depend on property type, construction area, labor costs, etc.
How much does it cost to build a 3-bedroom house in Arizona?
The average cost to build a three bedroom house in Arizona is between $300,000 and $400,000.
How much is the cost per sq ft to build in Phoenix, Arizona?
The house construction costs in Phoenix can be anywhere between $120 to $250 per square foot. You can check the complete cost breakdown and plan your budget.
