Cost to Build a House in Arizona: Complete Details for 2024

The average cost to build a new home in AZ is about $148 per square foot. A typical 2,000 square foot house would therefore cost around $295,000 plus. However, the total price ranges from $230,000 to $650,000 depending on location and custom features selected. From start to finish, building a custom home in Arizona takes 9-12 months on average to fully complete construction.

Key Takeaways

  • The average cost to build a home in Arizona is about $140 to $200 per square foot
  • A 2,000 sq ft home costs around $294,580 plus to build
  • Total price to build ranges from $200,000 to $600,000
  • Factors like location, property type, materials and more affect prices
  • Timeframe to build is typically 9-12 months

The Average Home Building Expenses in Arizona

Industry experts estimate the average cost per square foot for home construction in Arizona runs around $147.79. However, myriad factors can alter this base pricing significantly in either direction. The total price tag ultimately comes down to the size of home, number of floors, amenities selected, property location and more.

According to Forbes, it costs about $294,580 to building a new home in Arizona for every 2,000 square feet. The same floorplan in a multi-level property can easily exceed $375,000. Luxury homes with high-end finishes and features often reach upwards of $500 per square foot.

Also read: How Much Does it Cost to Build a House in Arkansas

Average Cost Based On Square Footage

Square FootageAverage Cost Ranges
500 sq ft$73,500 – $100,000
1000 sq ft$147,000 – $200,000
1500 sq ft$220,500 – $300,000
2000 sq ft$294,000 – $400,000
2500 sq ft$367,500 – $500,000
3000 sq ft$441,000 – $600,000
3500 sq ft$514,500 – $700,000
4000 sq ft$588,000 – $800,000
4500 sq ft$661,500 – $900,000
5000 sq ft$735,000 – $1,000,000

Costs by Arizona Area

AreaCost per Square Foot
Birmingham$100 – $150
Huntsville$120 – $180
Mobile$90 – $130
Montgomery$100 – $150
Rural Areas$80 – $120

House Building Expenses Across States in US

StateAverage Amount
New Jersey$376,900
New York$360,180
North Carolina$301,500
North Dakota$212,500

Also read: How Much Does it Cost to Build a House Alaska

Cost Breakdown to Build a House in Arizona

The main costs to build a custom home in Arizona include acquiring land, securing permits, paying for materials and labour, and covering the general contractor’s fees. You’ll also need to budget for utility connections, appliances, finishes, and any special amenities. Here’s a detailed overview:

  • Land – This is often the biggest upfront cost, ranging from $15-$50+ per square foot depending on the location and market demand. Plan at least $100,000 for a quarter acre lot.
  • Permits & Fees – Building permits, inspections and tapping into utilities like power and sewer will add $5,000 to $20,000 in most cases. Research these costs early when evaluating property.
  • Building Materials – The quality of your home’s bones and structure depend on excellent materials. Top choices average $85-$200 per square foot. Don’t cut corners here.
  • Construction Labor – Skilled tradespeople ensure the home is built properly. Their work costs around $65 per square foot. Choose contractors with strong local reputations.
  • Contractor Fees – Whether you use a production builder or custom home designer, contractor oversight runs 10-20% of total budget. Their expertise is worth the price.
  • Appliances & Finishes – Outfitting the kitchen, baths, laundry will cost upwards of $10,000 depending on brands and features selected. Flooring, lighting, tile and hardware add up too. Allow at least $30 per square foot for finishes.
  • Amenities & Upgrades – Extra features like pools, outdoor kitchens, workshop sheds or media rooms typically add another $15,000 to $30,000. Map these carefully to your long term lifestyle.

Factors That Influence the Building Cost

  • Location (metro areas and desirable communities are more expensive)
  • House size (larger square footage costs more)
  • Number of bedrooms and bathrooms (more rooms add cost)
  • Outdoor spaces like pools, patios, etc. (add a lot to the budget)
  • Types of materials and finishes (premium products are pricier)
  • Additional fees for permits, architectural plans, etc. (can range 5-20% on top of construction costs)

Also read: How Much Does it Cost to Build a House in Colorado

How Long Does It Take to Build a House in Arizona?

On average, expect the process to take 9-12 months from initial planning through final move-in.

Here is an overview of the new home construction timeline in Arizona:

  • Land Survey & Evaluation: 2-6 weeks
  • Architectural Design & Permits: 8-20 weeks
  • Site Preparation: 4-8 weeks
  • Foundation & Framing: 5-10 weeks
  • Exterior Finishes: 6-12 weeks
  • Interior Finishes & Fixtures: 6-16 weeks
  • Inspections & Punch List: 2-4 weeks
  • Landscaping & Final Details: 4-8 weeks

Tips for Reducing Your Building Costs

Here are some smart ways to lower your total expenditure when constructing a new single-family residence in Arizona:

  • Choose an economical floor plan – Simple layouts cost less
  • Build in off-peak seasons when contractor rates are lower
  • Use standardized material dimensions to reduce waste
  • Scale down square footage and eliminate unnecessary spaces
  • Research rebates/incentives for energy efficiency upgrades
  • Enlist an owner’s representative to control spending
  • Apply for energy tax credits for solar panels or geothermal HVAC
  • Consider modular construction methods to improve efficiencies
  • Get quotes from several Arizona contractors to compare pricing

Tips for Managing New Home Construction Budget

Building a house requires juggling many complex decisions and expenses. As you navigate the process, the following tips can help control your budget:

  • Work with a reputable home builder or general contractor: Their expertise saves time, prevents costly mistakes and reduces change orders.
  • Keep permit fees low by following zoning regulations: Design the home size, height, setbacks and other elements according to your neighborhood requirements.
  • Research utility connection costs ahead of time: Solar power, propane tanks, septic systems, and water/sewer lines add expenses if not planned properly.
  • Secure financing ahead of breaking ground: Line up construction loans or bridge financing to cover building costs before they begin mounting.
  • Select functional floor plans suited to your lifestyle: Focus on livable space rather than excessive “wow” factors that serve little purpose.
  • Determine must-have features and defer other upgrades: Splurges like backyard pools or home theaters can wait until after move-in.
  • Verify builder warranties plus workmanship and materials guarantees: Ensure protections are in place should defects emerge down the road.

House Building Financing Options

  • Construction loans – Offered by banks and credit unions specifically to fund construction costs over 6-12 months. Only pay interest until the home is finished.
  • Bridge loans – Provide short-term financing to cover building costs before you sell current home or secure permanent financing. Typically adjustable rate loans.
  • Cash-out refinance – Tap into equity of the current home by refinancing for more than you owe. Withdraw funds to put toward new home construction.
  • Personal loans/HELOCs – Generally higher rates but can access cash from these products to pay building expenses if you have equity or strong credit.
  • Cash payment – Ideal if you have significant savings to pay outright for land, materials and construction without financing. Avoid interest costs.
  • Owner-builder construction – Arrange construction loans in your name and act as your own general contractor to save on builder fees/profit margins. Must have expertise.

Benefits of Building Your Own Home

  • Custom design – Create ideal layout to match your family’s needs rather than buying an existing home.
  • High-quality materials – Invest in durable, low-maintenance materials and finishes that hold value.
  • Energy efficiency – Incorporate better insulation, windows, appliances to reduce monthly bills.
  • Ideal location – Choose the perfect neighborhood and lot to call home for years instead of compromising.
  • Cost savings – Building from scratch can prove more affordable than purchasing comparable property.
  • Equity & value – Custom details and renowned school districts help build faster equity and resale value.
  • Flexibility – Make changes more easily during the construction phase versus expensive remodels down the road.
  • Pride in ownership – Enjoy special satisfaction that comes from watching a vision for a dream home come to life.
  • Latest innovations – Take advantage of newest technology and sustainable building methods not found in older homes.

Building vs. Buying a House: Key Differences

The main difference between building and buying a house is that with building, you can customize the design and finishes to suit your tastes. However, constructing a fully custom home typically involves significantly more upfront effort in the planning and design stages compared to buying an existing or spec home that is move-in ready.

Building a custom home allows you to create the floorplan layout, choose high-end materials, and incorporate unique features like a wine cellar or home theater if your budget allows. Yet it also requires securing financing, managing the permitting process, vetting contractors, and a longer timeline before being able to move in. Buying an existing house is often faster and simpler, but you are limited to what’s available on the market at any given time, whereas building lets you manifest your ideal home.


Building a home in Arizona can cost anywhere from $100 to $300 per square foot depending on the size, location, materials you choose, and customizations made. While the typical 2,000 square foot house averages around $294,000 to construct, be sure to plan for extra expenses such as permitting fees, site work, land acquisition, and contractor overhead. Getting professional guidance early when budgeting for your custom build is key.

Frequently Asked Questions (FAQ)

How much does it cost to build a custom home in Scottsdale Arizona?

It typically costs $200-$300+ per square foot to construct a custom home in Scottsdale, putting a 2,500 square foot house at around $500,000-$750,000 or more depending on amenities, finishing and lot prices.

How much does it cost to build a 2,000 sq ft house in Arizona?

The average cost to build a house in Arizona is approximately $147 per square foot. Therefore, constructing a typical 2,000-square-foot home would cost around $294,580 for materials and labour. However, the total price ranges from $220,000 to $550,000 depending on location and custom features selected.

How much does it cost to build a 3,000 sq ft house in Arizona?

The average cost to build a house in Arizona is approximately $147 per square foot. Therefore, constructing a typical 3,000-square-foot home would cost around $441,000 for materials and labour. However, the total price ranges from $220,000 to $550,000 depending on location and custom features selected.

Can I build my own house in Arizona?

Yes, you can self build in Arizona as an owner-builder after applying for the correct permits. However all work must meet code and pass rigorous municipal inspections at each stage, so DIY builds often benefit from guidance of architects and contractors.

How long does it take to build a house in Arizona?

The typical custom home takes 270 to 360 months to complete in Arizona. Larger projects with additional complexities may go 420 to 540 months.

What is the average price per square foot in Arizona?

The statewide average cost to build per square foot is about $148. In metro areas like Phoenix prices tend to run $140-$170 per sq ft on average.


Razib is a skilled writer with 5 years of experience specializing in technology, finance, automotive and real estate. A BBA graduate from 2014, Razib's passion for these industries shines through in his informative and engaging content. His ability to break down complex topics and stay current on the latest trends makes him a valuable resource for readers seeking to understand these dynamic fields.

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