It costs anywhere from $250,000 to $650,000 to build a custom home in Texas. And that’s just for construction! Land costs can add a hefty $29,800 per acre. Let’s not forget about the rising costs of permits, materials, and labor fees.
In contrast, buying an existing home in the Lone Star State is a faster and more cost-effective option. With a 9% increase in new listings and 32% of homes with price drops, now is the perfect time to find your dream home.
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Cost Breakdown of Building a Home in Texas
For an average house size of 3,000 sq ft in Texas, here is a cost breakdown:
| Cost Head | Average Costs |
| Land Cost | $29,800 per acre |
| Water and Sewer Inspections | $270 – $1,737 |
| Building Permits | $0.08 per sq ft |
| Foundation | $7.00 – $12.50 per sq ft |
| Framing | $20,000 – $50,000 |
| Exterior Siding | $2.78 – $5.35 per sq ft |
| Roofing | $146 – $1,652 per 100 sq ft |
| AC Installation | $3,277 – $4,313 |
| Plumbing | $63 – $71 per hour plus materials |
| Electrical | $119.35 – $135.87 |
| Drywall | $1.44 – $1.54 per sq ft |
| Painting | $1.46 – $3.79 per sq ft |
*Source for other costs: Promatcher
What Is the Cost Per Square Foot to Build a House in Texas?
Texas home construction costs depend on the square footage and number of bedrooms in your home:
*The average cost range has been calculated at an average of $200 per sq ft.
Material Cost of Building a House in Texas
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 Texas:
- Framing Materials: Foundation, lumber, and steel beams will require about $20,000 to $50,000.
- 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 Texas home roofing prices per square foot for various materials:
- Exterior Painting: Prices may vary based on your choice of exterior. On average, it ranges from $1.57 – $3.40 per sq ft.
- Insulation: Fiberglass, drywall, and foam insulation help regulate the temperature inside your home. It costs from $0.92 to $2.30 for the installation.
- Windows & Doors: If you hire a professional to install windows and doors, it will cost from $146 to $803, depending on the material and its uses.
- Flooring Materials: The cost of wood flooring installation in Texas ranges between $2.89 and $4.77 per square foot.
- Cabinets & Countertops: Features like granite countertops and teak cabinets in kitchens may cost between $235 and $612 per box.
- Plumbing Fixtures: The cost to install sinks, faucets, showers, and PVC pipes throughout a home is between $154 – $202 per hour plus materials.
Labor Cost to Build a Home in Texas
A contractor can help you hire laborers and professionals for the construction process. Their work and associated costs include:
| Professionals | Hourly Rate |
| Flooring Installers | $19.24 |
| Roofers | $20.83 |
| Painters | $19.43 |
| Brick Masons | $24.35 |
| Landscapers | $16.35 |
| General Contractors | $25.24 |
| Plumbers | $28.79 |
| Carpenters | $22.03 |
| HVAC Technicians | $27.55 |
| Structural Engineers | $44.25 |
| Electricians | $27.33 |
*Source: Indeed
What Are the Indirect Costs to Build a House in Texas?
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: $32,000 Per Acre
Before you build your house in Texas, you need to shop for land. The costs are:
- Purchase Cost: The average price per acre in Texas is $29,800. 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 $1,500 and $3,000.
2. Texas Home Building Permit Costs: $5,000
The cost per square foot to build a home in Texas 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: $81 – $92 Per Hour
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 including labor.
How Can You Finance Your Home Construction in Texas?
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 Texas?
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 Texas is $447,500. 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, homes in Texas cost a median of $345,200. 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 in the current Texas housing market.
Cost to Build vs. Cost to Buy in Texas Cities
Let’s compare the cost to build a house and the cost to buy a house in Texas’s most popular cities:
| City | Average Cost to Build (Including Land) | Average Cost to Buy |
| Houston ($250 per sq ft) | $780,000* | $347,250 |
| Dallas ($170 per sq ft) | $550,000* | $440,000 |
*The average cost for cities has 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 Texas, 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 Texas?
It costs $250,000 to $650,000 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 Texas?
Building a house in Texas costs about $100 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 Texas?
The average cost to build a three bedroom house in Texas is between $300,000 – $400,000.
How much is the cost per sq ft to build in Houston, Texas?
The house construction costs in Houston can be around $250 per square foot. You can check the complete cost breakdown and plan your budget.
