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Find Out How Much to Build a House in 2022 from a Fortress Home Expert

To get your own house you need to consider all the expenses that lay ahead of you. A home building process is super complex — and it is important to know what stages it consists of, and what is the average cost of each of them. This is why we have decided to create this little guide — and just send this link to our customers who ask us: "How much is it build a house?".

On this page will find all the information you need on the house building budget. Hopefully, it will help you save tens of thousands of dollars and get the exact dream home that you envision.

Here at Fortress Home, we have been in the residential construction business for more than 20 years. Give us a call at 773-770-8607 if you still have questions on how much is it to build a house.


We will carefully listen and provide you with our professional vision of your home's construction process.

Factors affecting the average cost to build a house

Location, location, location!

Cost of building a house depends on multiple factors. And it's pretty hard to get an estimate for a custom home without doing research into the average cost to build in your area and getting quotes from the contractors.

The cheapest state to build a house in the US is Oklahoma — an average price of an 1800 square feet home here is $145,000. In Florida, the price tag rises to $209,000. A brand new house in Illinois, where the headquarters of Fortress Home is situated, is $223,000. And the top of the housing market is Hawaii with an average cost to build of $288,000. (Data provided by GOBankingRates.)

Labor costs

Besides such a major factor as location, the final cost of building a house would depend on the labor costs. Generally speaking, the type of contractor you choose will most likely correspond to the type of project you are planning. They can be both modest and affordable or represent the high-end of the residential construction market. Choose home builders for your new house wisely: real pros know how to get the best deals, discounts, subcontractors, etc.

The usual price tag of labor costs in the US is 40% to 60% of the total cost to build a house. The more complicated the project, the higher the price. So, if you are building a residential estate with a sales price of $500,000, expect to pay 44% of it ($220,000) to the home builders.

Material costs

The range of the building materials chosen is another key factor that affects the average cost to build a home. Will you be building from cinder blocks or a rare kind of tone? From wood or brick? The choice is totally yours! A professional contractor will provide you with the best options for your construction budget.

On average, half of the construction cost goes to the purchase of building materials. Therefore, for the estate with a sales price of $500,000 expect to spend 50%, or $250,000.

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Size matters!

Of course, the size of your future home determines its final price. A simple home of 1000 sq. ft. can be relatively inexpensive to construct. Let's say that even with a budget of $100,000 you can get yourself a fully functional house. There is a whole big international trend on tiny homes out there — check it out if you feel like you are not too keen on square footage!

The prices to build a custom home can differ drastically — from $90 / sq. ft in affordable suburban areas to $400 / sq. ft and more in prestigious neighborhoods.

Design project

The construction project is determined by its architectural design blueprint that includes house plans. How much does it cost, will totally depend on how much the future homeowners spend and what level of professionals they hire.

A simple suburban custom home floor plans can cost around $2500 but for luxurious estates design project costs can be as high as $50,000 and more.


Please give us a call at Fortress Home at 773-770-8607 to get your floor plan estimate.

Type of the building

The average cost to build a house is also determined by the kind of home you are building — a modular, or a prefabricated house that is manufactured off-site and then put together on your land — or a custom home — a unique solution that has been created especially for your needs. Luxury estates are the ones that cost more than $1 million.

We can call them custom homes on steroids. Vast grounds, impressive landscape design, best materials, multiple stories, and architectural delights naturally cost a lot. Price ranges for these dwellings can vary from one million to hundreds of millions of dollars.

When we are talking of an estimate, we are mostly talking about the mid-range of the market. For the modular houses, the average price tag is around $50-$100 per sq. ft, for custom homes — $100-$200. And for the luxury estates expect to spend $400 and more.

Major systems

Major utilities installed affect the median price to build a house. HVAC systems and plumbing are essential parts of them. And the prices can vary drastically.

Expect to spend at least $15,000 for the basic set of major systems for your brand new house. But state-of-the-art HVAC system and plumbing, installed in the luxury housing developments, can cost up to $75,000 and more.

Other expenses

There are many other details that we have to consider during the home building process. Above we listed all the upfront costs, but you have to keep in mind that technologies used, major appliances and amenities installed, interior design, and finishing touches will affect the cost. Usually, the professionals of the construction market will advise you to keep at least 10% extra (from the final budget) for unexpected costs.

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Services to expect from your home builder during the new construction process

  • Providing you with a cost to build a custom home
  • Creation of the floor plans with the help of an in-house or invited architect
  • Obtaining required building permits
  • Compliance with the zoning and the building codes
  • Preparing the site for construction (leveling, demolition of the existing home, etc.)
  • Purchasing the building materials and delivering them to the site
  • Hiring subcontractors
  • Construction process from A to Z (performing and overseeing)
  • Installation of all the major systems (HVAC system, plumbing, electricity)
  • Providing energy efficiency of the building
  • Finishing touches (installation of the exterior and interior doors, windows, sidings, closets, etc.)
  • Interior design
  • Interior finishes.

How do I afford to build my own home?

The home construction loan is a good solution. It is a short-term loan used mainly to cover the construction of new buildings. Usually, your builder will recommend companies that can offer the best interest rates, as well as the mortgage offline and online providers. So, if it's time to change an existing home to something better, you can always use this option!

Remember, that real estate construction prices are constantly rising — and if you are asking yourself a question "To build or not to build?", the answer is definitely to build. For example, in the post-pandemic 2021, total construction costs in the US rose 4,51%.

Are you ready for the new construction?

For more than 20 years Fortress Home has been making dreams come true. Most homeowners that we worked with have become a part of our extended family and left warm customer reviews on our website (check them out!).

Our company is a family-owned business, and it is super important for us to provide the best services possible.


The Chicago, IL area is our home: we know the best suppliers, lot costs, materials — and are ready to assist you with a project of any scale, from home improvement to massive home building. Give us a call at 773-770-8607 for a free consultation and an estimate!

Frequently Asked Questions

Is it cheaper to buy or build a house?

The median cost of building a house in the US is slightly cheaper than one of buying an existing home. The average construction price per square foot is around $150. According to Realtor.com, the sales price of an already built house is $185. Of course, how much does it cost to get your own house will vary depending on many factors such as location, the choice of the materials, and the floor plans.

But if you have decided to get an existing home, find a trustworthy local real estate agent from your community. It has to be a professional who knows how to guide you to make a budget: brick by brick.

Is it better to buy or build a house?

Both solutions have their benefits. New constructions are typically larger, with a median size of 2.592 square feet (in comparison to the average 1800 square feet of the houses out there on the market). Plus, by constructing your own house you design it to your precise requirements. If you have clear ideas about how you want the look of your home, it can be worth every cent.

Give us a call at 773-770-8607 and let's discuss your project! Fortress Home has been on the market for more than 20 years — and no matter if you are planning a single family home, a luxurious residence, or a multigenerational house — we are sure to have ideas on how to make all of them a reality!

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