How Much Does It Cost To Build A House In 2022? (Price Guide)

How much does it cost to build a house in 2022? If you’ve been asking yourself that question, well, you’ve come to the right place!

Here at Sustainable 9, we build custom homes all year round, 365 a year.

With the help of our team’s expertise, you’ll have everything you need to know before you build a house. 

Home Much Does It Cost to Build a House in 2022?

Editor’s Note: The following article was originally written in 2021, and has since been updated due to the ever-changing housing market.

There’s a lot that goes into building a custom home that you might not realize. Materials, labor costs, and the land itself are the key factors that will determine how much it will cost you to build your dream home. The prices of these factors will fluctuate depending on where you’re building, the time of year, and what the overall market looks like. Not to mention, the costs of architectural designs that are developed as well as any additional interior design fees.

To say the least, it’s hard getting a grasp of the overall cost to build a house in 2022 if you’re not taking all of these variables into consideration. No need to get overwhelmed, our team has done the hard work for you and provided a rough breakdown of what you can expect to pay as you build a house.

Reminder: This is an estimate of what it will cost to build a house in 2022. These numbers can fluctuate considerably from project to project, but consider it a good starting place.

• Land: 50k – 1m+
• Site work and land preparation: 30k – 70k
• Floorplan and design: 30k – 120k
• Foundation work: 40k – 90k
• Framing: 250k – 600k
• Exterior finishes: 100k – 500k
• Major systems (HVAC, Electrical, Plumbing): 90k – 200k
• Interior finishes: 350k – 1m+

Once you run the numbers, don’t be surprised if they come out around 900k to over 3.5 million. If you’re looking to build a larger custom-built home on an eccentric lot with luxurious designs and unique materials keep in mind that these prices will differ due to raw materials, labor, and design fees. Materials such as lumber, copper, and the products made from them will impact your overall budget the most.

Lumber Costs

Lumber has become extremely expensive over the past several years, especially during the COVID-19 pandemic. Despite the initial decrease in prices in the new year, lumber prices have surged throughout the past two years and in February 2022 they are currently sitting at $1,272 per thousand board feet. Although current lumber costs have not hit the peak that was reached in May 2021, they’re still roughly three times more expensive than the average price prior to the pandemic. 

With that being said, this significant increase in building material costs has led to delays and cancellations of projects nationwide. With this in mind, it’s important that you plan ahead financially and have realistic expectations of how long it will take to build your home.

Minnesota Home Building Costs vs. National Average

If you’re looking to build your dream home in the great state of Minnesota, then knowing how much it will cost here against the national average is important. Luckily you’ll be happy to find that Minnesota sits right near the national average cost to build.

On average, homeowners are spending $100 – $200 per square foot to build in certain parts of the country. However, in Minnesota, the numbers are considerably higher than the national average due to the need to weatherproof our homes to survive the extreme temperature fluctuations we experience. The typical starter or mid-range move-up home will range between $275 to $350 per square foot (not including the land). However, if you want to build a luxury or custom-built home in Minnesota, you can expect costs ranging from $450 to $700 or more per square foot. 

Pros and Cons of Building from Scratch

Before you build a new house, you’ll likely look into buying an existing home that’s already built. While there are pros and cons to each, the cost difference isn’t always very much. Sometimes the cost to build a new home is very competitive when compared to the cost to buy a home with similar square footage or when remodeling a home of a similar size.

The housing market in 2021, saw increases in real estate prices due to the increased demand across all price points. With the effects of the real estate market, lumber costs, and other increased construction costs, building a home, buying a new house, or buying an existing house are all falling in the same general ballpark.

Even with the increases in home values and construction costs, building a new home continues to be a great investment over the long run. Buyers are always on the lookout for the latest and greatest features when making their purchase decisions and building a new home or remodeling your existing home ensures that you will always maintain the highest possible value should you decide to sell that home in the future. Check out our blog to learn additional insight into the pros and cons of building a new house.

Buying a Home vs. Building From Scratch

Before you build a new house, you’ll likely look into buying an existing home that’s already built. While there are pros and cons to each, the cost difference isn’t always very much. Sometimes the cost to build a new home is very competitive when compared to the cost to buy a home with similar square footage or when remodeling a home of a similar size. The housing market in 2021, saw increases in real estate prices due to the increased demand across all price points. With the effects of the real estate market, lumber costs, and other increased construction costs, building a home, buying a new house, or buying an existing house are all falling in the same general ballpark.

Even with the increases in home values and construction costs, building a new home continues to be a great investment over the long run. Buyers are always on the lookout for the latest and greatest features when making their purchase decisions and building a new home or remodeling your existing home ensures that you will always maintain the highest possible value should you decide to sell that home in the future. Check out our custom home blog to learn additional insight into the pros and cons of building a new house.

Pros and Cons of Buying an Existing Home

Right off the bat, the biggest downside to buying a home and not building it yourself is that you don’t have the ability to customize the home to fit your unique style and needs. But, that doesn’t mean that you won’t be able to find a home that’s very close to what you’re wanting and looking for! Here are a few more things to consider:

Pros:

• Already built – no need to wait for contractors and construction.
• Cheaper rates on appliances – you won’t be buying new so everything will seem a bit cheaper.
• Investing and building equity – you might not be building it yourself but you’re still getting all the benefits of a long-term investment.
• Improving credit – buying a house is great for your credit and can help you build more credit as you work your way up to being able to build your own home.

Cons:

• Maintenance and repairs – older homes are going to need some maintenance and repairs from time to time.
• Unable to customize – unfortunately, you won’t be able to customize a home that’s already built. But you can undergo a remodel or renovate the home.
• Updates may be needed – updates to simple things like a roof, bathroom, or flooring in a home can be expensive. Make sure you know what you’re getting yourself into.
• Less efficient – older homes will almost always be considerably less efficient than new homes. Over time, materials and building practices get better and better, making older homes more costly to operate on a monthly basis.

Finding the Right Design-Build Company

If you’re looking for a design-build company that will take care of your every need and helps make the process as easy and simple as possible, Sustainable 9 is ready to help. We’ve been designing modern custom homes for 19 years, emphasizing energy efficiency while keeping costs down by utilizing an in-house team.

The homes we build achieve multiple green certifications from the Environmental Protection Agency (EPA), the Department of Energy, the US Passive House standard, as well as multiple other local Minnesota/regional certifications. They also pass extensive testing to ensure that you’re experiencing the best-performing home possible. 

If you’re interested in building your dream home with us, give us a call! We’re happy to answer any questions you may have about the process and what it entails. Need a bit more convincing? – Check out our completed projects to get a better idea of what we do!