There are plenty of good reasons why you might want to build your own home. Maybe you already own a nice piece of land. Maybe there aren't a lot of affordable, high-quality homes in your area. Maybe you want to build an investment property to rent or flip for a profit.
So how much will it cost to build a home from scratch? That's the million-dollar question (in some housing markets, it's literally a $1 million question). The truth is that the cost of building a home is going to vary greatly based on three factors:
- Size of the home. A 5,000 square-foot (464 square-meter) home is going to cost considerably more than a 2,000 square-foot (186 square-meter) home.
- Quality of finishes and amenities. Do you want expensive marble countertops in the kitchen and bathrooms or can you live with inexpensive laminate? Luxury upgrades add up fast.
- Geographic location. Like home prices, construction costs vary significantly by region. Expect to pay more in the Northeast and West than in the South.