If you’ve ever dreamed of building your own home, looking into what it actually costs to build a new construction may turn your dreams into nightmares. According to the National Association of Home Builders (NAHB), to construct a house, it costs an average of $296,652. However this number doesn’t even account for the fact that you also have to buy and develop land to build on! You’ll also want to consider paying top dollar for reliable home builders because you want to trust someone to finish the job and do it right. Because there are so many ways that expenses can pile up when constructing a new home, we’ve compiled a list of tips to help you build on a budget.
4 Ways to Build a House on a Budget
1. Less Space = More Savings
When it comes to building expenses, the bigger the house means the bigger the bill at the end of construction. Opt for less square footage in your custom home to save money on labor and materials. If you find it hard to imagine sacrificing that extra guest room, think about how much you’ll actually use the additional space and whether it’s worth the investment. Measure the most used areas in your current home and use that square footage to guide how much space you build in your new house.
2. Pick a Basic Home Layout
The most affordable layout to build is a simple square or rectangle. Because these won’t involve complicated corners or extra additions, you’ll save money in the home planning and design stage. Additionally, if you choose to only have a one story home, you’ll be able to cut costs that would come with building a second story. With such a simple home design, you can embrace a minimalist lifestyle and save money at the same time.
3. DIY the “Nice-to-Haves”
When building a custom home, you may envision picking out unique fixtures and finishes that you won’t find in another house, but it’s good to keep in mind that this is where the costs can really rack up. If there are certain luxuries that you’d love to have in your home like a wooden deck in the backyard or luxurious landscaping, you can save a pretty penny by doing it yourself. Of course, only tackle a project you’re comfortable with and make sure to leave technical projects that involve electrical or plumbing to the professionals.
4. Go Green to Save Green
If you’re interested in building an eco-friendly home, know that it actually pays to go green. Certain tax breaks and rebates are available at the state and local levels for folks looking to invest in energy efficient designs for their homes like energy efficient windows. Not every state and local area participates, so make sure to check out whether a clean energy program exists near you. If a program doesn’t exist in your area, you can use the Energy Star site to see what home improvements can help you save energy and money at home.
When it comes to building your own home, costs can easily skyrocket throughout the construction process. It’s important to find ways to scrimp and save so that you can do your best to stay within your budget. Another way to save is to research and compare estimates for materials and services you’ll need to construct your house. For a better idea of all the different construction expenses that add up, check out the infographic below from The Zebra.