How Much Does It Cost To Build A House In 2022? – Zing! Blog by Quicken Loans

How Much Does It Cost To Build A House In 2022? – Zing! Blog by Quicken Loans

Breaking Down The New Construction Work Costs

Before tackling any project, you should examine what it entails. That includes both the work involved and the prices. With that in mind, here are some of the most crucial steps when building a house and their average costs.

Plot Of Land

If you want to start your home on the right foot, you need to choose the land it stands on carefully. You can’t decide based on looks or good views alone, though. A plot of land may seem nice but could contain contaminants in the soil, come with high zoning costs or be prone to natural disasters.

As a result, it’s vital to do your due diligence and check all factors. Failing to do so can add thousands to your building expenses. In general, a plot of land may cost $3,000 – $150,000.

Lots tend to be finished in urban areas, meaning they hook into water lines, sewers and the electric grid. Comparatively, you’re more likely to find unfinished lots in rural areas, resulting in lower costs. The average per-acre cost of raw land in a rural area is only $3,380, according to the United States Department of Agriculture (USDA) Land Values summary.

Additionally, you will need to clear and prepare the land before building. The national average cost is around $2,680 per acre of lightly forested land, but heavily forested areas can cost twice as much or more.

Building Permits And Regulations

Once you purchase your plot of land, your contractors and subcontractors can start preparing. They’ll need to contact your local municipal office to receive the necessary permits. Sometimes a contractor already has a relationship with your municipality, speeding up the process.

Building permits are official documents that authorize you to begin constructing the property. The requirements, building codes and associated fees vary depending on where you want to build, though. So, it’s wise to check beforehand. During the construction process, a representative from the local Department of Building and Zoning will inspect the project to ensure it’s up to code.

Some of the permits you may need, and their average price range, include:

  • Building permit: $432 – $2,211
  • Basement permit: $1,200 – $2,000
  • Electrical permit: $10 – $500
  • HVAC permit: $250 – $400
  • Plumbing permit: $50 – $500

Contractor(s) And Labor Costs

A crucial figure in your project is the general contractor. This individual oversees the entire construction process of your home from beginning to end. They take on many responsibilities, such as obtaining cost estimates, vetting and hiring a team of subcontractors and ensuring deadlines are met.

A general contractor is technically different from a custom home building. The latter specializes in custom homes and draws up blueprints – two features the general contractor does not share.

A general contractor charges around 10% – 20% of the construction’s total cost, sometimes called “cost plus.” Some will agree to an hourly rate of $50 – $150 per hour, though.

After that, you need subcontractors. Each one specializes in a certain type of installation or task, such as security system installation or carpeting. They charge a similar hourly rate to general contractors.

Foundation

Breaking ground …….

Source: https://www.quickenloans.com/learn/how-much-does-it-cost-to-build-a-house

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