$132.05 per square foot! Sounds tempting, right? But hold your horses. Building your Lone Star State dream home goes way beyond that small amount.
Building involves permits, fluctuating material costs, and surprise expenses – all adding up to thousands of dollars. Then there’s the architect (hello, fees!) and engineer (more fees!). You’re now out of pocket hundreds of thousands of dollars!
Here’s the good news: a move-in ready Texas home offers upfront costs. Plus, 28.3% of homes are selling below the asking price, and there’s an 14.1% increase in new listings. So, you have tons of options to score a fantastic deal on your dream home.
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💸 Home Building is Expensive
- Homeowners spend $414,100 in total to build a house in the Lone Star State, which is $62,600 more than the median sale price.
- Expensive labor, supply chain issues, and a rise in material costs can further increase your expenses.
- In most cases, it is more affordable to buy a home for sale in Texas and move in quickly.
Can I Build My Own House in Texas?
Yes, you can build your own house in Texas, if you have land in an area of your choice. You have to budget for the time and the cost of building your home though. You will also need permits to build your house.
Permit fees depend on the home value or the construction area. Home building permit laws vary across counties in Texas. Refer to your local county’s website or office for more information.
» Permit Costs: Read more about home building permits.
Cost Breakdown of Building a House in Texas
To paint a better picture, here is a house building cost distribution for a 2,500 sq. ft. house in Texas:
Hard Costs to Build a House in Texas
Hard costs comprise expenses directly involved in the home-building process.
1. Material Cost to Build a New Home: $147,500
Building materials make up approximately 50% of the overall construction prices. You can expect to spend about $50 per square foot on material costs.
The Chief Economist at Associated General Contractors of America, Ken Simonson, expects price hikes and shortages to ease for some products, and to remain volatile for others in 2023.
Here are the material expenses you need to take into consideration while you build your home in Texas:
- Flooring: $2 – $7 per sq. ft.
- Drywall: $1.44 – $1.54 per sheet
- Siding: $3 – $15 per sq. ft.
- Lumber: $650 – $110 per board ft.
2. Contractor(s) Charges: 10% – 20%
You need a contractor or a firm to manage the construction process. A general contractor hires several other professionals involved in the home-building process. They include:
- Electricians
- Architects
- Floor installers
- Plumbers
- HVAC installers
- Carpenters, etc.
A contractor charges around 10% to 20% of the total construction value. The fee depends on several factors, such as property type, detailing, materials, and workforce. Apart from a contractor fee, ensure to account for each professional’s hourly rates.
The average hourly rates of home building professionals in Texas are as follows:
| Professionals | Hourly Rate* |
| Flooring Installers | $17.79 |
| Roofers | $20.79 |
| Painters | $18.60 |
| Brick Masons | $22.74 |
| Landscapers | $16.16 |
| General Contractors | $25.61 |
| Plumbers | $27.28 |
| Carpenters | $21.20 |
| HVAC Technicians | $24.94 |
| Structural Engineers | $39.32 |
| Electricians | $24.93 |
3. Electrical Costs: $7,500 – $12,500
The electrical cost for new construction per square foot is $3 to $6. This amount includes both the rough-in as well as the finishing work.
The amount you spend on electrical work will differ depending on the property size, type of wiring, wire material, etc. Some electricians can charge up to $120 per hour.
4. Roof Installation Costs: $2,900 – $33,000
The cost of roofing depends on the type of material you select, the roof’s slope, and the size of your home.
The table below displays Texas home roofing prices per square foot for various materials:
| Roofing Material | Avg Cost per 100 Sq. Ft. |
| Asphalt Shingle Roof | $146.89 – $238.70 |
| Tile Roof | $688.55 – $1,101.69 |
| Wood Shake Roof | $481.99 – $633.47 |
| Slate Roof | $665.60 – $1,652.53 |
5. Plumbing Costs: $12,000
Plumbing costs include installing plumbing fixtures such as toilets, faucets, wash basins, bathtubs, etc. Homeowners spend around $4.50 per sq. ft. in plumbing in new construction or $4,080 on average.
You require a plumber to fix the pipes and lay the sewage lines. You also need to install washing machines, dryers, and geysers while custom building a home in Texas.
6. HVAC Installation Costs: $12,500
Homeowners pay $1,500 to $12,500 to install a new HVAC system. This cost can further vary as per the size of the cooling area, the type of system, the brand, etc. All these additional factors can increase the HVAC installation cost by $2,000 or more.
Soft Costs to Build a House in Texas
Soft costs in home construction contribute to the building process indirectly. They include costs like land costs, permit costs, design costs, etc.
1. Land Costs: $32,800 per Acre
Before you build your house in Texas, you need to shop for land. You will incur two costs related to land:
- Land Purchase Cost: The average price per acre in Texas is $29,800. The cost of land depends on the size of the house you wish to build as well as the location.
- Preparation Cost: You need to clear the land and level it before starting the construction process. Land preparation costs can be anywhere between $1,500 – $3,000.
🤔 Is it cheaper to build a house in Texas if you already own land?
Yes. In most cases, building a house in Texas is cheaper if you own the land. You will bear only the cost of building the home. Plus, you can customize your home to your requirements!
» Land For Sale By Owner in Texas: Buy land to build a house near you.
2. Texas Home Building Permit Costs: $5,000
In Texas, contractors need a building permit to construct a new house. Construction or building permits are legal documents that authorize the house-building process.
The permit costs and building codes vary per county. They 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 as follows:
- 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, utensils, silverware, and bathroom essentials.
The costs will depend upon your taste, quality of finishes, location, and the outlet you order from. For a 2,500 sq. ft. home, you should budget at least $20,000 on interior furnishings.
4. Home Interior Designer Costs: $5,400
If designing your own home interior isn’t your thing, you can hire an interior designer. A great interior designer will provide you with 3D views and renderings of your home.
An interior designer will also order the right furniture, wall prints, rugs, etc. based on your taste and requirements. They can also help you maximize space utilization.
The cost of an interior designer isn’t cheap. You can budget $5,400; it can be more or less depending on your requirements.
House Building Financing Options
Here are the typical home-building financing options available for you:
Home Construction Loans
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 mortgage after the construction is complete and you move into the house.
- Construction-only Loan: It only covers the cost of home building. After your home is ready, the entire loan amount is due. You can pay back the loan in cash or take out a mortgage.
Personal Loan
A personal loan will not cover your entire home-building cost. You can opt for a personal loan to finance a specific part of the construction. For example, you can finance landscaping through a personal loan.
Home Equity Loan
A home equity loan applies to homeowners who already have a property and want to finance new construction. Depending on how much equity you own in your existing home, you can finance the entire construction of your new home or a part of it.
» Property Value Estimator: Find your home’s value within a minute.
Is It Cheaper to Build or Buy a House in Texas?
It is usually cheaper to buy a home than build a new one. However, by building your own home you get a brand-new residence, customized to your needs.
It costs $264,100 on average to build a home in Texas. This figure can add up to $414,100 if you include land costs, excavations, permits, and other expenses. A new home construction can take up to 9 to 12 months.
On the other hand, homes in Texas cost a median of $351,500. You can also easily find homes for sale in Texas under 300K in 1.5 to 2 months. So, buying a turnkey home is not just cheaper but also faster.
Find Homes for Sale in TX Under Your Specific Budget
Frequently Asked Questions
How much does it cost to build a 2,000 square foot home in Texas?
It costs about $132 per square foot to build a house in Texas. So, you would have to spend $264,000 to build a 2,000-square-foot home in Texas. These costs will vary depending on the exact location, property type, labor costs, material costs, etc.
How much does it cost to build a house per square foot in Texas?
It costs $132 per square foot to build a house in Texas. However, home-building costs depend on several other factors. These include property type, construction area, labor costs, etc.
How much does a foundation cost in Texas?
A foundation costs $5 to $12 per square foot in Texas depending on the thickness of the reinforced slab.
Is it cheaper to build or buy a house in Texas?
Generally, it is cheaper to buy a house than building a new one. Constructing a new home will cost approximately $35,000 more than purchasing one.
