Cost to Build a House in Indiana: Complete Guide for 2024

In Indiana, building a new home costs about $125 per square foot on average, meaning a 2,000 square foot house would cost around $250,000. Overall average construction costs range from $188,000 to $300,000 depending on factors like location, property type, labour, and materials. Completing a typical new single-family home takes 9-12 months across the state.

Key Takeaways

  • The average cost to build a house in Indiana is $125 per square foot
  • Cost per square foot approximately range from $100 to $300
  • A 2,000 square foot home will cost around $250,000 to build
  • Total costs typically range from $188,000 to $300,000
  • Key factors impacting cost include location, property type, materials, labor, permits, contractor fees, and finishes
  • Complete new home construction in Idaho takes 9-12 months

The Average Home Building Expenses in Indiana

According to Fixr, building a new home in Indiana costs about $125 per square foot on average, meaning constructing a 2,000 square foot house would run around $250,000. Overall average prices range from $188,000 to $300,000 depending on location, property type, labour, materials, and other factors that influence building expenses across the state.

According to Forbes, building a new home in Indiana costs about $109.65 per square foot on average. For a typical 2,000 square foot house, expect to spend around $219,300. However, total costs usually fall between $450,000 and $750,000 when factoring in land, permits, furnishings, and other expenses.

Home values in Indiana increased in December 2023 with the median sales price up 3.5% year-over-year to $240,100, according to the latest data from Redfin. The average home price across the state in December 2023 came in at $240,100, representing a 3.5 percent boost from December 2022 pricing levels.

Also read: Cost to Build a House in Idaho: Complete Idea

Average Cost Based On Square Footage in Indiana

Square FootageAverage Cost Ranges
500 sq ft$62,500 – $150,000
1000 sq ft$125,000 – $300,000
1500 sq ft$187,500 – $450,000
2000 sq ft$250,000 – $600,000
2500 sq ft$312,500 – $750,000
3000 sq ft$375,000 – $900,000
3500 sq ft$437,500 – $1,050,000
4000 sq ft$500,000 – $1,200,000
4500 sq ft$562,500 – $1,350,000
5000 sq ft$625,000 – $1,500,000

Average Cost to Build a House in Indiana by Cities

CityAverage Costs Range Per Sq. Ft.
Kokomo$110 – $150
Fort Wayne$170 – $220
Indianapolis$145 – $190
Greenwood$180 – $250
Lafayette$200 – $250
Bloomington$255 – $300

Average Cost to Build a House in Indiana By Number of Bedrooms

Number of BedroomsTypical Square FootageAverage Cost Range
21,000$90,000 – $110,000
32,000$180,000 – $220,000
43,000$270,000 – $330,000
54,000$360,000 – $475,000

Average Cost to Build a House in Indiana by Number of Stories

Number of StoriesTypical Square FootageAverage Cost Range
1 Story1,000$90,000 – $110,000
2 Stories2,000 $180,000 – $220,000
3 Stories3,000$270,000 – $330,000
4 Stories4,000$360,000 – $475,000
5 Stories5,000$360,000 – $475,000

Price to Build a House in Indiana by Style

StyleAverage Cost Range (Modular)Average Cost Range (Stick-Built)
Bungalow$150,000 – $200,000$216,000 – $396,000
Ranch$162,000 – $240,000$234,000 – $330,000
Shotgun Shack$180,000 – $255,000$250,000 – $350,000
Mid-Century Modern$180,000 – $400,000$250,000 – $610,000
Traditional$195,000 – $325,000$280,000 – $450,000
Cape Cod$200,000 – $275,000$290,000 – $400,000
Craftsman$210,000 – $350,000$300,000 – $500,000
Victorian$250,000 – $450,000$350,000 – $650,000
Contemporary$275,000 – $475,000$400,000 – $700,000

House Building Cost Across States in USA

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

Also read: Cost to Build a House in Hawaii: A Ultimate Guide

Typical New Home Construction Costs in Indiana

While every home building project is unique, researching average prices for materials, permits, utilities and more allows you to estimate costs in your area. Here is an overview of typical pricing based on constructing a 2,000 square foot house in Indiana.

Land Acquisition

Before construction can begin, suitable vacant land must be purchased. Lot prices vary widely based on location, size, zoning regulations, existing utility connections and other factors. In rural Indiana, basic building lots start around $15,000. For luxury homesites in suburban neighbourhoods, expect to pay $75,000 to $150,000+.

In a 2019 lot value survey, Indiana ranked #7 in the Midwest for affordability with an average per acre price of $6,500 across the state. But values climb far higher in cities like Carmel at $485,000 per acre.

Permitting & Fees

Local municipalities require various permits and charge associated fees before allowing new home construction. This includes costs like plan review, building permits, grading permits, tap fees, impact fees and more.

In Indiana, total permitting and fees often reach $5,000+. Larger custom homes or properties in high-demand areas may pay over $10,000 in permits/fees.

Utility Connections

Connecting to water, sewer, electrical, gas and telecom utilities makes up a small part of the budget at $5,000 to $10,000 depending on complexity. Costs rise if long utility runs or system upgrades are needed to reach the property.

Foundation & Framing

The foundation and structural framing make up the bones of a house. Materials like poured concrete and lumber fall in the range of $45,000 to $80,000 for typical single family homes. High-end finishes with added complexity increase costs.

Exterior Finishing

From brickwork to siding, expect to spend $65,000 to $150,000 to enclose a standard new home in Indiana. Luxury houses with stonework, stucco and special architectural details escalate expenses even further.


Asphalt shingle roofs keep construction affordable at around $15,000 to $30,000 installed. Specialty materials like slate tiling or metal roofing cost multiples more.


Proper insulation keeps homes comfortable and energy bills in check.  Most builders use fiberglass batts and loose-fill insulation for $10,000 to $15,000 in materials and labor. Upgrades like spray foam insulation improve efficiency but also raise costs.

Drywall & Painting

Covering interior walls and ceilings with drywall and paint costs approximately $15,000 to $25,000. More intricate designs take extra time and materials.


Choices like carpet, hardwood, tile and vinyl flooring vary drastically in pricing. Budget $15,000 to $50,000+ for installation throughout a typical new single family home.

Kitchen & Bathroom

Outfitting kitchens and bathrooms represents around $60,000 for stock models or $100,000+ for luxury fixtures and finishes.

Other Interior Finishes

Interior trim, doors, lighting, cabinets and hardware cost roughly $40,000 to $70,000. Home automation features, home theater systems or specialty built-ins add thousands more.

Landscaping & Driveways

Curb appeal matters for home values. Invest $15,000 to $30,000 in quality landscaping, fencing and paving for driveway access.

Also read: Cost to Build a House in Delaware: Complete Guide

Additional Costs to Budget For

On top of direct building expenses, additional fees must be considered when budgeting for a new home:

  • Architectural designs and engineering: For unique homes or challenging lots, specialised design work runs $8,000 to $25,000+.
  • Permits and surveys: Count on $3,000 to $7,000 for various inspections, surveys and certificates needed to start building.
  • Insurance: Builders risk insurance protects against damage or lawsuits during the construction phase, costing around $2,000 to $5,000 depending on the project scope and timeline.
  • Project management: For larger projects, a dedicated project manager adds $15,000 to $30,000 but can yield cost savings that offset their fees. Their expertise handles scheduling, sourcing, budget tracking and more.
  • Finance costs: With construction loans, expect to pay thousands in origination fees and hundreds per month in interest payments over the 9-12 month average build timeline.

How Long Does It Take to Build a House in Indiana

A major influence on the total budget is the project timeline from start to finish. Rushing construction carries risks and drives up per day expenses.

Most home builders anticipate 9-12 months to complete a new single family residence after the permits and designs are finalised. Larger luxury houses take even longer given custom materials and intricate details involved.

Delays from weather, supply chain disruptions, or labour shortages threaten the schedule and costs. It pays to build time buffers into construction timetables.

Factors That Impact the Cost to Build a House in Indiana

  • Location – Construction in cities like Indianapolis is more expensive than rural areas
  • Property type – Building on vacant land is cheaper than infill redevelopment
  • House size – Larger square footage increases materials and labor costs
  • Architectural design – Simple styles and layouts cost less than modern, custom plans
  • Number of bedrooms & bathrooms – More rooms raise the rate per square foot
  • Customization level – Upscale finishes, materials, and amenities boost the budget
  • Energy efficiency features – Green equipment and certifications add to the total price
  • Lot conditions – Difficult terrain requires extra site preparation work
  • Contractor reputation & experience – Top builders charge higher rates

Tips for Saving Indiana Construction Costs

  • Choose simple architectural styles like craftsman or farmhouse
  • Build in rural locations with cheaper land & labor
  • Work with local general contractors over national builders
  • Limit square footage and customize minimally
  • Install energy-efficient features to offset higher upfront costs

Focusing on simplified designs, smaller footprints, local trades, and strategic upgrades brings significant savings. Rural regions also provide notable discounts over urban cities. Carefully targeting these key areas allows for optimizing construction budgets.

House Building Financing Options

  • Construction Loans – Offer financing for all costs to build a home which is repaid once construction is complete through an end loan.
  • Land/Lot Loans – Fund the purchase of land which will then allow obtaining a separate construction loan.
  • Cash – Using your own savings to pay for portions or all of the building costs.
  • Credit Cards – Putting building expenses on cards to earn rewards, but this option comes with high interest rates.
  • Home Equity Loans – Leveraging existing home equity by taking out a second mortgage type loan with fixed rates and terms.

Construction loans are most popular as they cover everything with competitive rates and roll into a conventional fixed rate mortgage long-term. Land loans, cash, and home equity financing may be used to supplement. Credit card rewards come at the cost of sky-high interest.

Benefits of Building Your Own Home in Indiana

  • Customization – Design home to your unique tastes and needs
  • Cost control – Weight tradeoffs on materials, features, labour
  • Quality materials – Choose higher grade finishes that last
  • Energy efficiency – Incorporate latest insulation, appliances
  • Ideal location – Select neighbourhood and homesite you prefer
  • Pride of ownership – Make property distinctly your own
  • Potential appreciation – Custom homes can yield higher resale value
  • Create generational wealth – Pass ongoing value to children or grandchildren
  • Exact floor plan – Optimise layout for how you live and work
  • Home automation – Integrate smart home tech features
  • Focus on priorities – Emphasise spaces most important to you
  • Future flexibility – Accommodate potential expansion needs

Building vs. Buying a House: Key Differences

Building a new home allows much more customization compared to buying an existing house. You can dictate the layout, materials, lot location, special features and more when building. However, constructing a home does come with higher upfront costs and longer project timelines versus buying.

Purchasing an established resale skips the 9-12 month construction phase and lets you move in quicker. But choice is far more limited to what’s actively on the market. Tradeoffs exist as older homes may require updates and renovations that narrow the price difference from new builds. Newer homes also gain efficiency from modern construction techniques. Carefully weighing priorities around location, price, customization and move-in timing helps determine if building from the ground up or buying resale makes better sense. Consulting local real estate experts adds insights.


Building a new house in Indiana costs around $109 per square foot on average. So for a typical 2,000 square foot home, expect a price tag of $218,000. However, the total budget ranges between $400,000 to $700,000 after factoring additional expenses like land, permits, fixtures among others. Completing construction usually spans 9-12 months based on the prep work, size, and any customization. Location and property specifics also sway overall pricing quite a bit across the state.

Frequently Asked Questions (FAQ)

Is it cheaper to build or buy a house in Indiana?

It is generally cheaper to build than buy. Building a comparable home allows you to add custom features that suit your needs and lifestyle while achieving 10-20% construction cost savings over market prices of existing homes.

How much does it cost to build a 2000 sq ft house in Indiana?

In today’s market, you can expect to spend around $218,000 to build a 2,000 square foot house in Indiana, or roughly $109 per square foot. Total budget would range from $400,000 to $500,000.

How much does it cost to build a 3000 sq ft house in Indiana?

A 3,000 square foot home runs about $327,000 for construction costs in Indiana, assuming $108 per square foot. With land, permits etc., expect a total budget of $550,000 to $650,000.

How much does it cost to build a house in Indiana right now?

Currently in 2023-2024, average per square foot costs are $100 to $300 across Indiana. So a typical 2,000 sq ft house is around $200,000-$300,000 plus to build. Final amount depends greatly on customization, finishes and location.

Can I build my own house in Indiana?

Yes, you can self build in Indiana. Key steps include: buying land, getting permits/designs, hiring subcontractors and managing them yourself hands-on or hiring a general contractor to coordinate. Know that DIY building is complex, time consuming and still has significant costs.

Jean Folger

Jean Folger brings over 15 years of expertise as a financial writer, specializing in areas such as real estate, investment, active trading, retirement planning, and expatriate living. She is also the co-founder of PowerZone Trading, a firm established in 2004 that offers programming, consulting, and strategy development services to active traders and investors.

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