Cost to Build a House in Texas: True Cost of Your Dream Home for 2024

In Texas, building a new house on average costs approximately $132 per square foot. So a 2,000 square foot home would cost around $264,000. Total price ranges from $450,000 to $800,000 depending on location, property type, labor, materials, etc. Constructing a custom residence typically takes 9-12 months from start to finish.

Key Takeaways

  • Average cost per square foot to build a house in Texas is $132
  • The cost typically ranges from $130 to $350 per square foot. 
  • For a 2,000 square foot home, expect to pay around $264,000
  • Total cost ranges from $450,000 on the low end to $800,000 plus on high end
  • Timeframe to build a custom home is typically 9-12 month

The Average Cost Building a Home in Texas

The average cost for building a new house in Texas is $132.05 per square foot. Constructing a 2,000 square foot home would therefore cost approximately $264,100 for the initial shell, not including additional finishes or amenities. Total expense ranges between $440,000 on the low end and $800,000+ on the high end, varying based on exact location chosen, property type, labor rates, materials selected, and extra features like pools, outdoor kitchens, workshop bays etc.

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

Average Cost Based On Square Footage in Texas

Square FootageAverage Cost Ranges
500 sq ft$66,000 – $175,000
1000 sq ft$132,000 – $350,000
1500 sq ft$198,000 – $525,000
2000 sq ft$264,000 – $700,000
2500 sq ft$330,000 – $875,000
3000 sq ft$396,000 – $1,050,000
3500 sq ft$462,000 – $1,225,000
4000 sq ft$528,000 – $1,400,000
4500 sq ft$594,000 – $1,575,000
5000 sq ft$660,000 – $1,750,000

Average Cost to Build a House in Texas by City

CityAverage Building Cost per Sq. Ft.
Austin$140
Houston$180
Dallas$135
San Antonio$125
Fort Worth$120
El Paso$105
Arlington$120
Corpus Christi$115
Lubbock$100
Waco$95

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

BedroomsAverage Size (Sq. Ft.)Minimum CostMaximum CostAverage Cost
11000$100,000$200,000$150,000.0
21500$150,000$300,000$225,000.0
32000$200,000$400,000$300,000.0
42500$250,000$500,000$375,000.0
53000$300,000$600,000$450,000.0

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

StoriesApproximate Size Range (Sq. Ft.)Minimum CostMaximum CostAverage Cost
11,000$100,000$200,000$130,000
21,500$150,000$300,000$225,000
32,000$200,000$400,000$300,000
42,500$250,000$500,000$375,000
53,000+$300,000+$600,000+$450,000+

Estimated Cost to Build a 2,000 sq ft Home in Texas by Style

StyleAverage Cost (Modular)Average Cost (Stick-Built)
Farmhouse$400,000 – $500,000$500,000 – $700,000
Tudor$450,000 – $575,000$525,000 – $675,000
Mediterranean$450,000 – $600,000$540,000 – $750,000
Guest House$400,000 – $520,000$500,000 – $600,000
Modern$425,000 – $550,000$525,000 – $650,000
Traditional$400,000 – $500,000$500,000 – $600,000
Ranch$375,000 – $475,000$475,000 – $575,000

The Average Cost to Build a House Across The US State

STATEAVERAGE COST
Texas$264,100
South Dakota$204,420
South Carolina$301,840
Rhode Island$338,180
North Dakota$212,500
New York$360,180
New Mexico$290,940
New Hampshire$299,900
Nevada$334,140
Nebraska$210,900
Montana$298,960
Missouri$226,760
Mississippi$255,320
Maryland$294,160
Maine$282,140
California$405,440
Arkansas$251,800
Arizona$295,580
Alaska$421,080
Alabama$267,620
Illinois$265,440
Utah$288,560
Massachusetts$350,820
Minnesota$236,980
Pennsylvania$270,000
Washington$343,100
Connecticut$345,440
Florida$263,640
Georgia$273,860
North Carolina$301,500
Ohio$222,480

Also read: How Much Does it Cost to Build a House in South Dakota in 2024

Cost Breakdown of Building a House in Texas

Building costs can be broken down into hard costs and soft costs:

Hard Costs

Hard costs encompass the physical construction required to build the home:

  • Land acquisition: Buying a property to build on can cost $15,000 to $200,000+ depending on the location and lot size.
  • Materials: From the foundation to the roof, construction materials make up a significant portion of costs. Expect to spend $80-150 per square foot.
  • Labor: Builder fees, subcontractor fees, and general labor will run you $40-90 per square foot. Complex designs require more labor hours.
  • Utilities: Connecting water, electric, gas, sewer, and more can cost $5,000 to $25,000+. Underground utilities are more expensive.

Total hard costs range from $150-300+ per square foot.

Soft Costs

Soft costs include pre-construction planning, consultants, closing fees, extra amenities, etc:

  • Permits & surveys: Local permits, site surveys, architecture plans, etc can add $5,000 to $30,000.
  • Consultant fees: Architects, engineers, interior designers, etc charge $5,000 to $30,000.
  • Closing fees: Lenders, attorneys, appraisers, title searches charge around $5,000 total in fees.
  • Amenities: Custom pools, home theatres, security systems can each cost over $50,000. Landscaping is $15,000+.

Total soft costs often range from $30,000 to $150,000+.

Also read: Cost to Build a House in North Dakota: Complete Guide

Factors That Influence Building Costs

  • Location – Major metro areas like Austin and Dallas cost more than rural small towns
  • Property Type – Empty land is cheaper than demolition/cleanup of existing structures
  • House Size – Square footage is a primary driver of materials and labor costs
  • Customization – Luxury features like media rooms further increase budget
  • Terrain – Extensive grading, tree removal or retaining walls add expenses

The above key factors all contribute to the final price tag for constructing a new home in Texas. Urban regions command higher premiums for land, materials and local worker wages. Meanwhile custom designs, larger homes, and challenging terrain further boost budgets compared to basic contractor-grade finishes on flat vacant lots. Understanding these cost drivers helps set realistic expectations when budgeting a brand new house build.

Ways to Reduce Costs

If aiming for more affordable construction, consider:

  • Opt for a spec home rather than fully custom build
  • Choose more remote locations with cheaper property
  • Limit square footage and remove unnecessary spaces
  • Finish basement later as funds allow
  • Use mid-range or lower finishes and features
  • Complete landscaping in phases over time

While compromises are needed to trim expenses, focus savings on areas that don’t drastically impact daily living. Prioritize the functional spaces that matter most.

Timeline to Build a House in Texas

For custom homes built on private property in Texas, the typical timeline spans 9-12 months across these general phases:

  • Planning & Design: Finalize Blueprint, Secure Permits (1-3 Months)
  • Site Prep: Land Clearing/Grading, Lay Utilities, Pour Foundation (1-2 Months)
  • Framing: Build House Structure and Roof (1-2 Months)
  • Exterior Finishing: Install Windows, Doors, Siding, Roof Shingles (1-2 Months)
  • Interior Finishing:  Insulation, Drywall, Paint, Cabinets, Flooring (2-3 Months)
  • Utilities & Systems: Electrical, Plumbing, HVAC, Septic/Sewer (1-2 Months
  • Landscaping, Driveway: Finish Site Work (1-2 Months)
  • Inspections & Certificate of Occupancy (1 Month)

The total duration largely depends on weather delays, contractor/labor availability, permitting timelines, and customization complexity. Well-organized project management is essential to complete construction efficiently versus allowing long gaps between phases.

Financing Your Texas Home Build

When budgeting construction costs, most buyers need financing help covering the full price tag. Top options include:

  • Construction Loans – Shorter-term financing for building phase
  • Mortgages – Longer-term loans for completed home
  • 401K/IRA Funds – Tax-advantaged retirement savings
  • Home Equity – Leveraging existing property value

Construction loans provide revolving access to cash over 6-12 months to pay contractors during each phase, before converting to a traditional 30-year fixed rate mortgage. Buyers with sufficient retirement savings or home equity can leverage those funds as an alternative.

Carefully projecting total costs and lining up financing help keep builds moving smoothly until the certificate of occupancy. Consulting a qualified lending specialist makes the process easier. With proper funding, Texans can turn their dream home visions into reality.

Benefits of Building Your Own Home in Texas

  • Higher quality control over materials and construction
  • Opportunity to incorporate special amenities or features
  • Newer systems and greater energy efficiency
  • Exact home and lot acreage to meet family needs
  • Ability to choose ideal neighborhood or school district
  • Pride and equity from building rather than buying
  • Potentially cheaper over long-term than comparable existing homes
  • Fun process allows for lots of great DIY opportunities
  • Freedom to integrate smart home automation capabilities

While the upfront effort and costs can seem daunting, hundreds of thousands of people choose to construct new homes in Texas every year. The unparalleled chance for personalization, quality oversight, and catering the layout to an owner’s lifestyle makes building an exciting endeavor with rewarding long-term perks for those able to make the considerable investment.

Building vs. Buying a House: Key Differences

Building a House

  • Fully customizable design & features
  • Longer process, typically 9-12 months
  • Higher upfront costs but potential long-term savings
  • Newer construction, systems & efficiency
  • Personal oversight of construction quality

Buying a House

  • Faster process, move within 1-2 months
  • Requires less cash upfront
  • Locked into existing layout/features
  • Risk of hidden issues or deferred maintenance
  • Must compete with other buyers on the market

Key Differences:

Building allows full personalization but requires a big budget and patience over the 9-12 month construction period. Buying offers faster turnaround to move in but less control over property condition and design. Weighing affordability, location needs, and customization wishes helps determine the better path.

Is it Cheaper to Buy or Build in Texas?

Key factors to consider if debating whether to build new or buy existing:

  • New construction allows full customization but requires more effort.
  • Existing homes offer move-in readiness at lower hassle but less control over finishes.
  • Custom building is generally pricier than buying in Texas’ hot housing market.
  • Carefully weighing priorities like location, amenities, layout, condition will guide the decision.

Building a fully customised dream home brings satisfaction for many buyers despite the higher costs. But buying an establishment can make sense if looking for value and convenience.

Conclusion

Building a new house on average costs around $132 per square foot in Texas. This equates to approximately $264,000 to construct a 2,000 square foot residence. Overall expenses to build a home in Texas span $450,000 to $800,000, varying based on the precise location, property specifics, labor wages, materials selected, and additional customizations or amenities included. Numerous factors impact the total budget when planning a house construction project in Texas.

Frequently Asked Questions (FAQ)

How much does it cost to have a house in Texas?

It costs around $132 per square foot on average to build a house in Texas. Total costs range from $450,000 to $800,000 depending on size, location, materials, property type, etc.

How much does it cost to build a 1500 sq ft house in Texas?

The cost to construct a 1,500 square foot house in Texas averages $198,000 (at $132 per sq ft). Prices span $120,000 to $300,000+.

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

Building a 2,000 square foot house in Texas runs around $264,000 on average, ranging from $160,000 to $400,000+.

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

Constructing a 3,000 square foot house in Texas averages approximately $396,000, spanning $240,000 to $600,000+ based on the finishes, location, and other customizations.

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

Generally it is cheaper to buy an existing home rather than build new construction in Texas’ competitive housing market. But custom building allows full personalization in exchange for higher costs and effort.

Why is it so cheap to build a house in Texas?

Key reasons it is relatively affordable to build a house in Texas include: lower land costs, business-friendly policies, lack of state income tax, streamlined regulations, and abundant space to build.

Why is it cheaper to build a house in Texas?

Building a house in Texas can cost less than other states due to lower land prices, policies favorable to development, no state income tax, room to expand, and comparably affordable labor and materials.

Razib

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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