How Much Does It Cost to Build a House in Texas?

Are you dreaming of building your own home in the Lone Star State? With low property taxes and no state income tax, Texas is a great location that provides a unique blend of affordability and a rich community. But the big question is: What is the cost of building a house in Texas?

Keep reading to find out how much it costs to turn raw land in Texas into your dream home and what expenses you need to keep in mind.

The Cost of Newly Constructed Homes in Texas

One way to get a sense of how much you can expect to spend when constructing a new home is by considering how much such a home might sell for on the market. The cost of a newly constructed home in Texas with standard-grade finishes is generally around $325,000. This price covers a typical tract or spec home of about 1,600 or 1,700 square feet. This figure is significantly cheaper than the national average cost of $439,170. Keep in mind that the sale price of newly constructed homes will also be higher than the actual cost of building as developers look to sell for a profit.

The Average Cost Per Square Foot for New Construction in Texas

Another good way to get an idea of your budget for new construction is by considering the average cost of new construction per square foot. In Texas, the average cost per square foot for a newly constructed house varies depending on the type of property. On average:

• The cost per square foot of a basic home is between $140 - $220
• The cost per square foot of a custom home is between $250 - $300

With these figures in mind, you can get a rough estimate of how much you can expect to spend on new construction.

How to Set a Home Construction Budget

Before you start constructing your new home, consider everything that goes into the project: the building plans, the tools, and the services you’ll need to hire. Here’s a brief list to help you get started:

1. The Cost of Land

The first step is to determine the type of land you want and the location of the property. While searching, it’s also important to consider the financing options that are available to you. If you have no or bad credit, you can opt for owner financing with favorable terms. 

2. Land Improvement 

Another factor that influences your budget is the amount you’ll spend improving the property. It’s best to contact a builder or property developer to provide an estimate of how much it’ll cost you. Some other factors that are considered at this stage include:

• Grading Work: This is important for a strong foundation and heavily depends on the land you purchase. An experienced builder can tell you the exact grading work you need to support your construction layout. 
• Sewer or Septic: Setting up a waste disposal system is an important part of building a house in Texas or anywhere else. Your builder should advise you on the options that suit your property and provide an overview of the installation process.
• Water Setup: During this stage, you’ll need to decide on what type of water utility that’ll run in your home. Consider the pros and cons before settling on an option and committing to the construction process. You’ll need to identify the major systems in your area and learn about prices.

Keep in mind that a Texas land developer can help you carry out all the steps you need to take to prepare your land for new construction.

3. Construction Costs

These depend heavily on the location, the size, and the building materials you’ll need for your home. To get an accurate estimate of what costs you might incur, you may need to contact a Texas land developer for more information. Below we break down construction costs in more detail.

4. Outline Additional Costs

The bills don't end with land and construction costs. You still have to consider the cost of things like furniture, fixtures, electronics, and labor costs. You’ll also need to determine what sort of interior finish you want, the items needed in each room, and what their cost estimates are. 

5. Get Expert Advice

To complete your calculations, we recommend you contact local developers in your area to verify the estimates you've prepared and help you implement any final adjustments.

The Common Building Costs You’ll Need to Account For

The total cost of building your new house will depend on factors like the size, location, materials used, and the degree of customization you choose. While there isn’t a specific equation that can quantify all these expenses, you can break down the building process and create estimates that suit your budget.

To kick off, we've compiled the basic costs you’ll need to handle when building your dream home:  

• Foundation: Whether you're digging a basement or pouring a concrete slab, the overall cost of building a foundation varies between $4,045 and $14,718.
• Framing: This is when the house plan starts taking shape. Framing costs between $14,000 and $32,000 depending on the complexity of the project. 
• Building Permits: In addition to the cost of construction itself, you’ll also need to pay for permits to build a house. Permit prices depend on the overall costs of construction.
• Excavation and Grading: Before you build your home, you may need to grade the soil. Depending on the soil type, it may cost between $1,660 and $6,701.   
• Land Survey: Carrying out a land survey helps you identify the measurements, boundaries, and features unique to your plot. It typically costs between $376 and $768.
• Hiring an Architect: Regardless of their specialization, it typically costs between $2,190 and $11,604 to hire an architect. Generally, they charge between 8% and 15% of the project’s total costs.
• Roofing: Texas' most popular roofing material is asphalt shingles, which cost between $5,700 and $12,000. Alternatively, metal roofs cost between $6,200 and $34,000.
• Windows and Doors: The price of your windows and doors will depend on the material, with wood being the most expensive and vinyl or aluminum being the cheapest. Don’t forget to account for interior doors. Windows can cost between $300 and $1,500, and doors can cost between $400 and $4,500.
• Appliances: The average costs for appliances depends on the brand, functionality, and finish. Each appliance can have a price tag of between $2,100 to $5,400, or even up to $10,000 for more high-end appliances.
• Electrical and HVAC systems: Wiring a house in Texas is estimated to cost between $5,000 and $10,000. Depending on the size of your home, installing a new heating and cooling system can cost as much as $12,000. 
• Labor Costs: Home builders don’t just charge for materials; they also charge for their time. You can expect to pay between $50 and $80 per square foot for labor costs in Texas.

While all the costs of new construction might have you considering buying an existing home instead, it’s worth keeping in mind that the median price of buying a home in Texas in 2023 was $342,400, while the average cost of building a new home was $325,000. That means that building a home may actually save you money in some cases.

Find the Right Land for Sale in Monte Alto, Texas, with Vista Ridge Acres

Building your house can be a challenging but very fulfilling process, and the outcomes you’ll get largely depend on the land you buy. That’s why it’s best to partner with professional Texas land developers like Vista Ridge Acres to find the right land for sale for your needs.

Our team is committed to guiding you from start to finish. So, if you’re looking for land for sale in Monte Alto, Texas, contact us to find the right property for your building needs. If you can’t apply for a mortgage or other loan, no need to worry. We can help you purchase land without the need for a credit check through our owner-financing options.

Work with the team at Vista Ridge Acres to purchase the ideal land that meets your needs.