Building your home is easy if you know the process thoroughly. From pouring the foundation to designing the interior, home building is an exciting journey for homeowners.
But the hassle of selecting a home builder, zeroing down on the materials, dealing with home building permits, etc. make the new home building process daunting. Here’s a breakdown of the steps of building a house in the US.
How to Build a House?
Here are the steps in building a house:
Step 1: Purchase a Land
Decide where you want to build your home. Do you want to live in the countryside or a growing development? Enquire about the already existing facilities like nearby school districts, health facilities, and more.
Research about zoning designation. Common Zoning Destinations include
- Residential areas
- Commercial areas
- Industrial belts
- Rural areas
- Environmental zones
Step 2: Finalize the Type of House You Want
Generally, there are three types of home built available for homeowners to choose from:
- Speculative homes: Spec homes are single-family homes with a limited scope of customization. This type of home is built with no particular buyer in mind. If you contact the builder early on, you might customize some home features like paint, kitchen appliances, etc.
- Tract homes: A builder purchases a large plot of land and divides it into smaller lots. They then implement specific architectural options for the particular community. You will have the option to choose between condos, single-family homes, or townhouses.
- Custom homes: A custom built is when you own the land and hire a builder to construct a house exactly the way you want. As the name suggests, you can customize everything as per your wish.
Step 3: Hire a Custom Home Builder or a General Contractor
On average it takes 22 subcontractors to build a house. First, you need to hire a custom home builder or a contractor who will supervise the homebuilding process.
A custom builder or a general contractor gets cost estimates, hires sub-contractors, assigns tasks, ensures the new home construction timeline is followed, etc.
Step 4: Get Home Building Permits
Before the house construction process kicks in the builder will acquire the building permit from the local municipal authorities. It is very likely that your contractor has relations with the local authorities and can speed up getting the home building permit.
Step 5: Know the Costs to Build Your House
As per the aforementioned study by NAHB, the cost to build a home is $449,000 including land costs. Builder grade constructions costs around $150 per square foot on average.
| National Average Cost | $248,000* |
| Minimum Cost | $155,000* |
| Maximum Cost | $1,000,000* |
| Average Range | $178,000 to $416,000* |
As this is an average figure, it can go up or down depending on several factors like type, size, labor demand, material costs, etc.
Cost to Build a House Near You
Click on your region to know home building costs in your area:
| Region | States/Cities | How Much Does it Cost Build a House Near You |
|---|---|---|
| Northeast | States | Connecticut | Maine | Massachusetts | New Hampshire | New Jersey | New York | Pennsylvania | Rhode Island | Vermont |
| Northeast | Key Cities | Philadelphia, PA |
| Midwest | States | Illinois | Indiana | Iowa | Kansas | Michigan | Minnesota | Missouri | Nebraska | North Dakota | Ohio | South Dakota | Wisconsin |
| Midwest | Key Cities | Chicago, IL |
| South | States | Alabama | Arkansas | Delaware | Florida | Georgia | Kentucky | Louisiana | Maryland | Mississippi | North Carolina | Oklahoma | South Carolina | Tennessee | Texas | Virginia | Washington D.C. | West Virginia |
| South | Key Cities | Dallas, TX | Houston, TX | Atlanta, GA | Miami, FL | Orlando, FL | Austin, TX |
| West | States | Alaska | Arizona | California | Colorado | Hawaii | Idaho | Montana | Nevada | New Mexico | Oregon | Utah | Washington | Wyoming |
| West | Key Cities | Seattle, WA | Sacramento, CA |
Final Verdict
The steps to build a house may seem overwhelming, but homebuying is also not an easy task either. An average home buyer looks at least 10 houses in 10 weeks before submitting an offer. Sometimes they choose to give up the home search and build a home for themselves either.
If you are one such buyer who is now pivoting towards building your own house, do your research. Estimate your budget, choose a style, and most importantly hire a reputed contractor.
Frequently Asked Questions
1. Is it cheaper to build a house?
As per a recent study by the National Association of Home Builders (NAHB) and the US, Census Bureau, it is cheaper to buy a home than to build your own home by $34,000 on average.
2. How much does it cost to build a house?
As per the aforementioned study by NAHB, the cost to build a home is $449,000 including land costs. Builder grade constructions costs around $150 per square foot on average. Read how much does it cost to build a house to know the exact estimates.
3. How long does it take to build a house?
The process of building a house can take anywhere between six to nine months,
4. How to get a loan to build a house?
You can opt for the following loans for building a home:
1. Construction-to-Permanent Loan
2. Construction-only Loan
3. Personal Loan
4. Home Equity Loan
5. Can you build a house with a VA loan?
Yes, you can use a VA loan to build a single-family home on land they already own or plan to purchase.
