How Much Does It Cost to Build Your Dream Home in Oregon in 2024

In Oregon, building a new house on average costs $170 per square foot. So a 2,000 square foot home would be around $340,000. Actual prices range from $100-$220 per square foot, this mean total cost range from $200,000 – $350,000 depending on location, property type, finishes, labor, and other factors. Building a full custom home typically takes 9-12 months from start to finish.

Key Takeaways

  • Expect to spend around $170 per square foot to construct a house in Oregon
  • A 2,000 square foot home will cost approximately $340,000 to build
  • Prices range from $100 – $200 per square foot depending on various factors
  • Timeline to build a custom home is typically 9-12 months
  • Getting accurate bids and understanding what’s included is key

The Average Cost Building a Home in Oregon

The average cost of building a new house is $170.29 per square foot in Oregon. Constructing a 2,000 square foot home will cost about $340,580. However, actual costs can range from as low as $200,000 on the affordable end to $350,000 plus on the high-end, depending on factors like location, property type, labor expenses, and material costs.

Also read: Cost to Build a House in Rhode Island: Building Smart, Saving Big

Average Cost Based On Square Footage in Oregon

Square FootageAverage Cost Ranges
500 sq ft$85,000 – $100,000
1000 sq ft$170,000 – $200,000
1500 sq ft$255,000 – $300,000
2000 sq ft$340,000 – $400,000
2500 sq ft$425,000 – $500,000
3000 sq ft$510,000 – $600,000
3500 sq ft$595,000 – $700,000
4000 sq ft$680,000 – $800,000
4500 sq ft$765,000 – $900,000
5000 sq ft$850,000 – $1,000,000

Average Cost to Build a House in Oregon by City

CityCost per Square Foot2,000 sqft Estimated Cost
Portland$180 – $220$360,000 – $440,000
Eugene$160 – $190$320,000 – $380,000
Salem$150 – $180$300,000 – $360,000
Bend$170 – $200$340,000 – $400,000
Medford$140 – $170$280,000 – $340,000
Corvallis$155 – $185$310,000 – $370,000
Grants Pass$135 – $165$270,000 – $330,000
McMinnville$145 – $175$290,000 – $350,000
Hillsboro$185 – $215$370,000 – $430,000
Beaverton$180 – $210$360,000 – $420,000

Estimated Cost to Build a Home in Oregon by Number of Bedrooms

Number of BedroomsEstimated Cost

Estimated Cost to Build a Home in Oregon by Number of Stories

Number of StoriesEstimated Cost for 2,000 sq ft
Single Story$280,000 – $340,000
Two Story$300,000 – $360,000
Split Level$310,000 – $370,000
Three Story$330,000 – $390,000

Estimated Cost to Build a Home in Oregon by Style

StyleEstimated Cost for 2,000 sq ft
Modern$310,000 – $370,000
Craftsman$290,000 – $350,000
Ranch$280,000 – $340,000
Farmhouse$300,000 – $360,000
Mediterranean$320,000 – $380,000
Victorian$340,000 – $400,000
Minimalist$310,000 – $370,000
Mid-Century Modern$330,000 – $390,000
Cape Cod$290,000 – $350,000
Bungalow$280,000 – $340,000

The Average Cost to Build a House Across The US State

South Carolina$301,840
Rhode Island$338,180
North Dakota$212,500
New York$360,180
New Mexico$290,940
New Hampshire$299,900
North Carolina$301,500

Major Cost for Building a House in Oregon

Land Cost

The first major expenditure when building a home is purchasing the land. Land prices can vary dramatically depending on the location and amenities. Some key factors impacting land cost in Oregon include:

  • Location: Land in urban areas like Portland or popular suburban communities will be significantly more expensive than rural properties. Expect to pay a premium for locations close to the Willamette Valley vineyards or Pacific coastline as well.
  • Property Type: Large residential plots with acreage will be pricier than standard lots. You’ll also pay more for parcels in established neighbourhoods versus undeveloped areas.
  • Amenities: Land with existing structures, utility hookups, or desirable features like waterfront access will add to the purchase price.

As an example, a half-acre vacant lot in suburban Portland could run anywhere from $200,000 to $600,000+. On the other hand, 5+ acres in rural Eastern Oregon may only cost $50,000 to $100,000.

Also read: Cost to Build a House in Texas: True Cost of Your Dream Home

Construction Materials

Once you secure the land, the next major expense is purchasing all the materials to build the home itself. Materials commonly used for Oregon residential construction include:

  • Lumber: Framing timber, plywood, OSB for structural system
  • Concrete: Foundation and flatwork
  • Bricks/siding: External decorative facade
  • Windows and doors
  • Roofing: Asphalt shingles, metal roof panels
  • Insulation: Spray foam, batt insulation
  • Drywall and plaster: Interior walls and ceilings
  • Flooring: Hardwood, tile, vinyl, carpet
  • Cabinets and counters: Kitchens and bathrooms
  • Fixtures and finishes: Lighting, plumbing, built-ins

You can select from varying grades and price points for most of these materials. Going with mid-range or better quality products is recommended to enhance durability and resale value.

Overall material costs frequently account for 50% or more of the total budget for constructing a single family home. Our 2,000 square foot example house would likely have $150,000 to $200,000+ in materials alone.

Labor Expenses

In addition to purchasing the physical building materials, you’ll need to pay a general contractor and their crew for constructing the home. Oregon labor expenses for a typical single family residence generally include:

General Contractor Fees

  • Project management
  • Coordinating subcontractors
  • Inspections/quality control
  • Overhead and profit markup

Subcontractor Costs

  • Site work/excavation
  • Concrete foundations/flatwork
  • Framing carpentry crew
  • Roofing installation
  • Electrical, plumbing, HVAC
  • Insulation/weatherization
  • Drywall hanging/finishing
  • Painters
  • Flooring specialists

Other Labor

  • Landscaping crew
  • Cleaning/waste removal

With labor making up 30% or so of the typical construction budget, you would have to allot $100,000+ for a 2,000 square foot house. Paying prevailing wages for skilled trades in high demand areas like Portland could push costs even higher.

Permitting Fees

Before construction can legally commence, it’s necessary to have proper building permits approved through municipalities and counties. Typical permitting expenses include:

  • Plan review fees – Paying city/county staff to review architectural plans and ensure code compliance. Often based on project size and scope.
  • Site development permits – Covers costs for authorizing grading, erosion control, utility connections, drainage systems.
  • System development charges (SDCs) – One-time fees to hook up to public infrastructure like roads, parks, water lines. SDCs help fund civic improvements.
  • Other permits – Mechanical, electrical, plumbing, fire suppression may need separate approvals.

Permitting fees generally add 1% to 2% on top of the construction budget. Some simplified builds or rural areas have lower costs, while large renovations or urban locales could exceed 3% or more in permitting expenses.

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

Additional Costs

Beyond the three main buckets of land, materials, and labor, building a home also incurs expenses like:

  • Landscaping – Professionally grading and planting trees, shrubs, lawns
  • Utilities – Connecting/upgrading electric, gas, water, sewer
  • Consultants – Architects, engineers for design and structural plans
  • Legal fees – Real estate attorneys, title searches, transfers
  • Appliances – Refrigerator, dishwasher, washer/dryer, etc.
  • Furnishings – Beds, seating, storage, decor
  • Contingency fund – Extra cushion for unforeseen costs

These additional items can easily total over $50,000 for a typical single family residence. It’s smart to budget at least 10% of the construction cost for contingency and soft costs.

Total Cost To Build a House in Oregon

Now that we’ve examined the major components, what’s the total cost to build a house in Oregon?

While expenses can vary dramatically based on the size, location, finishes and other amenities, the typical range is:

  • Low-end: Approximately $100 per square foot
  • Mid-range: Roughly $170 per square foot
  • High-end: Over $250 per square foot

So constructing a modest 1,500 square foot house would start around $150,000. Our 2,000 square foot example home would tally up to approximately $340,000. And a luxury custom estate could easily exceed $500+ per square foot.

As you budget for building costs, remember to factor in:

  • Purchase price of land
  • Market rates for materials and labor
  • Permitting requirements in your area
  • Site-specific utility connections
  • Contingencies for the unexpected

And don’t forget the premiums often charged in desirable areas like Portland’s urban corridor or suburbs and recreational areas with high demand.

Factors That Impact Building Cost in Oregon

  • Location: Costs tend to be higher in urban areas like Portland and Eugene compared to rural areas.
  • Land cost: This is a separate expense and can vary greatly depending on location, size, and terrain.
  • Design and size: Larger homes and complex designs are more expensive.
  • Materials and finishes: Choosing high-end materials and finishes will increase the cost.
  • Labor costs: These can vary depending on the contractor and location.
  • Permits and fees: Factor in the cost of building permits, inspections, and other fees

Ways To Reduce House Building Costs

If the estimated prices are stretching beyond your target budget, here are some tips to cut costs:

  • Save on land – Compromise on location/size to spend less on property
  • DIY construction – Complete portions yourself if skilled to avoid labor markup
  • Supply discounts – Research sales and bulk pricing from vendors
  • Floor plan changes – Optimise layout to use materials efficiently
  • Reduce finishes – Prioritise essentials over expensive surfaces / amenities

With careful planning and value engineering, you can trim tens of thousands off the total bill for constructing a home. But take care not to sacrifice too much on vital components like foundation, roof, and insulation that compromise structural integrity or comfort.

How Long Does It Take to Build a House in Oregon

For a full custom home built from the ground up, you should budget 9-12 months from start to finish. The major phases include:

  • Planning & design: 2-4 months
  • Permitting: 1-3 months
  • Site prep & foundations: 1-2 months
  • Framing & roofing: 1-2 months
  • Exterior finishes: 1-2 months
  • Interior finishes: 1-2 months
  • Inspections & landscaping: 1-2 months

Delays can occur during permitting, inspections, or if supply chain issues crop up. Using a project manager can help keep the build on schedule.

House Building Financing Options for Oregon

  • Cash or Liquid Assets – Paying cash upfront if funds available avoids financing fees and interest.
  • Home Equity Line of Credit (HELOC) – Uses existing home as collateral for construction loan with low interest rate.
  • 401K/IRA Loans – Allows you to borrow against retirement savings without tax penalty.
  • Construction Loans – Short-term financing from banks released in phases/draws during building.
  • Land Loans – Specific loans using the land plot as collateral to fund construction.
  • USDA, VA, and FHA Loans – Special federal loan programs for eligible home buyers building in rural areas or with military background.
  • Energy Efficient Mortgages – Offer better rates and can roll energy upgrade costs into overall loan.
  • Developer Financing – Some developers provide or arrange financing as part of the building contract.
  • Custom Construction Lending – Banks like custom home specific loans with variable draws.
  • Personal Loans – Can use other assets as collateral for fixed-rate construction financing.

Benefits of Building Your Own Home in Oregon

  • Customization – You can customise the design, layout, materials, and features to fit your lifestyle.
  • Cost savings – Building on land you already own can cost less than buying. Allows you to stay within your budget.
  • Energy efficiency – New construction lets you incorporate solar, insulation, HVAC for lower utilities.
  • Smart home tech – Install cutting-edge automation, lighting controls, EV charging in new builds.
  • Quality materials – Pick high-end finishes and products that match your personal style.
  • Flexibility – Adapt plans over time to meet changing family needs.
  • Privacy/seclusion – Build in peaceful rural areas with acreage buffers if desired.
  • Pride in ownership – Enjoy the satisfaction of creating your perfect home from the ground up.
  • Investment opportunity – Custom-designed homes hold resale value for later equity building.
  • Latest building codes – New houses meet latest seismic, fire, storm safety standards.

Building vs. Buying a House: Key Differences 

Building a House

  • Design & customise exactly what you want
  • Takes much longer, often 9-12 months
  • Can choose quality of all finishes and materials
  • Lower energy bills from efficient construction
  • Higher costs upfront for permits, site prep, utility hookups
  • Can occupy upon completion instead of searching for an available existing home
  • More active role involved like approving plans, finishes, working with contractor

Buying a House

  • Cheaper and much faster process
  • Move-in ready, no construction noise or dust
  • Less involvement in design details or approvals
  • Can see existing condition and property before committing
  • Shopping for ideal location can take more effort than building
  • Won’t know neighbours or community issues ahead of time
  • Higher long-term energy costs from outdated systems
  • Choice limited to available listings that meet criteria
  • Less customization of finishes or layout options
  • Often lower initial costs and financing rates

Is It Cheaper to Build a House in Oregon

The answer depends greatly on the circumstances. Building on land you already own that is properly zoned and ready for construction can potentially be cheaper than buying an equivalent existing home. However, expenses like permitting, site preparation, utility connections, and laying foundations can make building more expensive overall than purchasing a move-in ready house. Carefully factoring in all costs and being realistic with the custom design is key to determining if building truly saves money versus buying in the Oregon market.

Bottom Line

The bottom line is that building a new custom home in Oregon runs around $171 per square foot on average. So constructing a 2,000 square foot house would cost roughly $342,000. Actual prices can range from $200,000 on the low end to $400,000 on the high end, varying based on location, property details, materials, labor, and other factors. The full process of planning, permitting, construction and finishing a built-from-scratch house typically takes 9 to 12 months.

Frequently Asked Questions (FAQ)

How much does it cost to build a 1500 square foot house in Oregon?

With average building costs around $170 per square foot, a 1,500 square foot home would cost roughly $255,000 to construct in Oregon.

How much does it cost to build a 2000 square foot house in Oregon?

A 2,000 square foot home will average about $340,000 to build in Oregon based on $170 per square foot pricing.

How much does it cost to build a 3000 square foot house in Oregon?

For a 3,000 square foot house, estimated building costs are approximately $510,000 in Oregon at standard rates of $170 per square foot.

Can I legally build my own house in Oregon?

Yes, you can legally build your own home in Oregon as an owner-builder. However, permits are still required and you must adhere to state building codes.

How much does it cost to build a house in Central Oregon?

Central Oregon is at the higher end of the cost spectrum in the state, with build costs averaging $175-$200 per square foot. So a 2,000 square foot home would likely run $350,000 to $400,000 to construct.


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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