Prospective buyers face a major decision when they take their first steps towards homeownership: Buy an existing house or build a new custom home? It often depends on the buyer’s financial situation, budget, and what they want.
The median sale price of single-family homes in the United States in December 2021 was $358,000, an increase of 15.8 per cent from the previous year, according to the National Association of Realtors. The median sale price for single-family homes during the same time was $377,700 according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development.
The cost difference may initially seem like a major dealbreaker for some buyers. Others may find it worth the cost to build a new home according to their own specifications.
Let’s make it easier for you to decide if you want to build something new.
Cost per Square Foot for a Single-Family New Home
The average cost of building a new house is $284,158. The cost of a new home can vary depending on the location, type of home, size, and desired features or luxuries. While new construction is typically priced between $100-200 per square foot (but customizations can quickly increase the cost to $500 per square foot), it’s not uncommon for costs to go up to $200 or $300 per square foot.