The average cost to build a home is $332,000… The median construction price of a single-family home is $296,000. But thanks to COVID-19, buyers can expect to pay a “pandemic premium” of $35,000—bringing the cost to $332,000.
…but you’ll incur additional costs during the build process. That $332,000 covers basic construction costs like materials, interior finishes, plumbing, and heating. But those aren’t the only costs in building a new home. When you build, there are additional costs you’ll incur, including excavation and foundation (which, if all goes well, will run about $33,000—but can easily go over if there are any issues), permits (which average around $5000) and inspections ($4300). You’ll also have to cover any living expenses while your home is being built (for example, renting an apartment).
The average cost to buy an existing single-family home is $380,000. Currently, the median price for an existing single-family home in the US is $380,000—making it slightly less affordable, on average, than building.
The difference between the cost of building a new home and buying an existing home has a lot of variables that will differ from one area to another, and one situation to another. It’s impossible to make a decision entirely based on average costs, so make sure you weigh your options carefully and consult a local real estate agent who can help you evaluate the pros and cons of each situation—so you can make the best decision for you, your family, and your home search.