How Much Does it Cost to Build a House in Indiana?


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    To own or build a house is one of every person’s cherished dreams. Indiana is one of the popular locations to construct a house, irrespective of the size. Large chunks of land are available for sale in major cities of Indiana like Columbus and Indianapolis.

    The cost of living in Indiana is much lower than in other cities in the US. Indiana is home to a diverse population and offers a perfect blend of urban and rural living.

    Can I design my own house in Indiana?

    Yes. Custom-made houses are preferred by most people as they unleash the traits of creativity and self-discovery. Building houses with self-made designs and choices also means choosing special features that pre-existing homes cannot provide, customization of landscapes & designs, and the property’s location.

    The average cost of custom home building in Indiana is around $115 per square foot. In short, building a house in Indiana is affordable. The needs, budget, and desires of an individual are satisfied. Impact fees and other charges are levied on top of building costs in Indiana.

    Should I move to Indiana is a question that crosses the mind of every individual planning to shift to one of the midwestern cities.

    Is Indiana a cheap place to live?

    Indiana is a relatively cheap place to live in the midwestern US. The cost of living in Indiana is 82.1% and is much lower than the national average. The average rental prices and property costs are lower than most other cities. The rental price of a 1-bedroom apartment is $1086, down by 0.1%.

    Some of the affordable towns of Indiana include Columbus, Lafayette, Mishawaka, Kokomo, West Lafayette, South Bend, Greenwood, Muncie, and Evansville.

    It is easy to find affordable accommodations below $1000 a month in Indiana. The average home price in Indiana is $191,054 lower than the national average.

    Indianapolis is the largest city in the Indiana region. Should I move to Indianapolis or the pros and cons of living in Indianapolis are articles that will help gauge the lifestyle costs and culture in this city.

    Average Cost to Build a House in Indiana

    The average cost to build a house in Indiana falls between $110 and $170 per square foot. Although the price to build a custom is very high in other states of the US, it is affordable in cities like Michigan and Indiana. The average cost to build a 1500 square feet house in Indiana ranges from $150,000 to $225,000.

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    12 Main Factors of House Building Cost in Indiana (IN)

    Building a house is not an easy task. Innumerable factors need to be considered while constructing an abode in addition to the cost of living in Indiana. Can you list down some factors and prerequisites?

    The complete breakdown of prime factors of house building in Indiana is listed below.

    1. Cost of Land in Indiana

    Land prices vary by state and city,  depending on various factors like available housing, roads, and other amenities. Proximity to rural or industrial areas also makes a difference in land costs. Land costs also depend on utilities like electricity, sewage, water, and public transportation.

    Cost of Land

    How much is land worth per acre in Indiana?

    Top-quality land in Indiana has an average value of $8668 per acre. Average quality land retails for $7072 per acre, and the poor quality land is available at $5407/acre. The average land value in Indiana is around $6815/acre.

    How much does residential land cost in Indiana?

    The average residential cost in Indiana is expected to sell at prices between $16,000 to $35,000  per acre in 2022.

    How much does wooded land cost in Indiana?

    The average wooded landed cost in Indiana comes to around $537,261. Wooded lands include timberland and forestland. Further, an area of 5000 acres is encompassed by wooden lands in Indiana. These lands are also routes of hiking trails in Indiana.

    2. Planning and Designing Cost

    Planning and designing are the most vital parts involved in the construction of a house. One may require a designer, an architect, and an engineer to execute these phases.

    Designing Cost

    An architect models the entire structure and creates a blueprint. The hourly charges in Indiana are about $100 to $200.

    An engineer executes the entire plan and constructs the house. The hourly charges in Indiana are about $100-$250.

    A designer looks after the interior designs and furnishings of the entire structure. The hourly charges of a designer are about $50-$200.

    How much does it cost to design a house plan in Indiana?

    Custom designs for a house plan in Indiana cost around $2000 to $20,000.These designs include detailed specifications and documents. Pre Designed plans are cheaper and cost only $500 to $2000.These plans and prices depend on the home’s size and style.

    How much do architects charge for plans in Indiana?

    Architects are entrusted with the responsibility of creating a house plan in Indiana. Architects’ charges come around 5%-20% of construction costs or $5000 to $20,000 in general. The hourly charges of an architect are around $100 to $200.

    3. Foundation Cost in Indiana

    Foundation forms an essential structure of property in Indiana. There are different types of foundations, and they are labor-intensive.

    Cement and concrete blocks are used as foundation materials. Material costs constitute 5% of total building costs and have increased considerably over the past few years.

    Foundation Cost

    The average price for a 2000 square feet house in Indiana amounts to somewhere between $8500 to $12000.

    How much does it cost to put in a foundation?

    The average cost for building a foundation in Indiana is about $8500. High-end foundations cost around $15,000, and the lower-end ones cost about $6000. The prices depend on various factors like permits, the type of the foundation, and labor.

    How much is a 30*40 Foundation?

    30*40 is a standard measure of foundation beams for a garage or small apartment and costs around $8000 to $12500. For big buildings and apartments, the costs may be higher.

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    4. Land Preparing Cost

    Bulldozers and soil tests must make the land ready for construction. Proper land development leads to a strong foundation base.

    Land Preparing

    The average land preparation cost in Indiana is about $5000 to $10,000. Land preparation costs depend on the size of land and the amount of clearing.

    Land preparation begins with a project site survey and ends with an application for construction permits.

    Is land preparation a fixed cost in Indiana?

    The average land preparation cost in Indiana is about $2700. It also depends on the amount of clearing and the size of the land. One must pay about $1.25 to $2 per square foot.

    What does land preparation include in Indiana?

    Land preparation starts with a survey to identify boundaries and closures. Clearing rock and vegetation is the second step. Other steps include preparing the construction area, arranging for utilities, and foundation costs, and demolishing existing structures.

    5. Cost of materials in Indiana

    The cost of materials depends briefly on the quality of the structure and size of the building, which constitutes 30% to 50% of the total cost.

    Cost of material

    Raw material costs depend on supply, demand, sources, and quality factors.

    Choose materials according to choice, budget, and usage. Calculate additional costs for the inclusion of a premium range of materials.

    How do you calculate construction material costs?

    To calculate construction materials for two-by-fours, one must convert length into feet by multiplying by 12. Division of the multiplicated amount by 16 gives the number of two-by-fours.

    How much do the raw materials cost?

    Supply and demand affect the cost of raw materials. Raw materials from natural sources are limited and are priced at a higher price. The cost of these materials depends on the quality as well. Higher-quality raw materials are more expensive than the lower-cost ones.

    6. Cost of Labor

    A team of three professional helpers or builders in Indiana costs around $130/hour. The price includes the insurance of workers but not liability insurance.

    Cost of labor

    The labor costs for these workers are listed below.

    A journeyman carpenter charges about $60-$85/hr whereas, for an apprentice carpenter, it is $40-$55/hr. A Finish carpenter charges $55-$70/hr. Bricklayers charge in the range of $550-$600/1000.

    How do you calculate the labor cost to build a house in Indiana?

    The labor costs to build a house in Indiana are based on the usage of a pricing database. Estimating labor costs is provided by considering the average hourly wage rate and different works involved in the project.

    What is the labor cost to frame a house in Indiana?

    Framing labor cost is calculated per square foot of the house structure. The average framing cost is about $6-$8 per square foot.

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    7. Interior Finishing Cost

    Interior furnishings play a crucial part in completing an apartment structure, and interior finishing costs constitute 30% of the total costs.

    Interior Cost

    Painting, lighting, flooring, and plumbing fall under the interior designing category. Customized homes need major investments in furnishing costs.

    Interior finishes make a house feel comfortable and cozy. Interior furnishings are an expression of a person’s creativity and identity.

    How much does it cost to finish a house interior in Indiana?

    The average cost to complete interior finishes in Indiana is about $67,939. The prices depend on the area, quality of products, and level of intricacy.

    How much does it take to finish a 2000 square foot house in Indiana?

    The median price to build a 2000 sq ft house in Indiana is about $130 per square foot. The prices of building costs have increased post-pandemic and will rise further in the upcoming years.

    8. Furniture Cost

    Important furniture pieces in a house include beds, couches, wardrobes, tables, and chairs. These units can cost about $20,000-$80,000 in recent times. The selection of furniture items depends a lot on personal style and budget.

    Furniture Cost

    The major items to buy in a living room are a sofa followed by a coffee table, chairs and TV stand. A good quality sofa costs $1024 on average.

    The bed and its furnishings like mattress and slabs bear the high cost of bedroom furniture. The average cost of these bedroom units is about $2050.

    Kitchen furniture includes a dining table, chairs, storage, and counter space. Balcony or patio are furnished with grills or weather-resistant furniture.

    How much does the average person spend on furniture in Indiana?

    On average, a person spends $8176 on furniture in Indiana.

    How much does it cost to furnish a living room in Indiana?

    On average, it costs about $2200 to furnish a living room in Indiana with basic furniture.

    9. Finishes and Fixtures

    Finishes and fixtures contribute to about 3-5% of average costs. These fixture items are governed by personal style and budget. For luxurious fittings, expensive materials like cabinetry, trim, and flooring.


    Choosing materials can affect the budget in general. Hence, it is crucial to set up a budget for finishes and fixtures based on style, taste, and preference.

    One needs accurate measurements to fix and install these finishes and fixtures. Lighting installation costs $77.50/hr.

    How much does it cost to have a light fixture installed?

    Simple light fixtures cost less than $100, while expensive fixtures are priced up to $1000.

    How much does it cost to install LED lights in a house?

    The average cost to install LED light strips in a house is about $100 to $150 with a complete kit of transformer and wiring. Each strip encompasses an area of 10 linear feet and LED light installation costs about $72.50/hr.

    10. Hidden Costs

    Hidden costs refer to small amounts that create a big impact over some time. These costs are stated in building contracts but are not obvious.

    Additional costs include home inspections, closing taxes, insurances, land surveys, home warranty, moving costs, and miscellaneous tools and equipment.

    Hidden Cost

    Inspection costs range from $300-$500, and loan appraisal costs from $350 to $650.

    Home maintenance constitutes 1% of total costs. Average closing costs include 2-5% of total costs.

    The average moving costs in Indiana are about $1500-$3000, and the homeowner’s insurance ranges from $1300- $1700 per year.

    What are some unexpected costs when buying a home?

    Inspection costs, loan appraisal costs, homeowner’s insurance, closing costs, moving costs, and maintenance are unexpected costs when buying a home.

    11. Building Permit in Indiana

    Building permits constitute approvals given by local jurisdictions for the construction of a new project. The cost of building permits varies by city and county; nevertheless, all areas do not require building permits in the US.

    Building Permit

    The permits constitute a fixed percentage of the total cost of the project. In Indiana, the price usually varies from 0.05% to 1%.

    In Indiana, building permits are required to construct new structures, demolish old ones, and expand existing structures. Permits are not required for additional work such as painting, tiling, and carpeting.

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    How much do building permits cost in Indiana?

    Building permits in Indiana constitute a fixed percentage of 0.05% to 1% of total costs.

    What permits are needed to build a house in Indiana?

    Electrical permits, plumbing permits, zoning permits, demolishing permits, Sign permits, HVAC permits, and Right of Way permits are needed to build a house in Indiana.

    12. Impact Fees

    Impact fees are generally levied by local governments and property developers.

    Impact Fees

    Local municipalities charge some fees for new homes. In Indiana, impact fees are charged between $3000 to $5000. Public services such as libraries, parks, water sewage, and basic amenities are maintained by impact fees.

    Impact fees are charged on a one-time basis to create new infrastructures. These fees are also termed additional costs for maintaining these services.

    Thus, these fees are part of infrastructure financing and vital for local government infrastructure.

    Does Indiana charge impact fees?

    Yes, Indiana charges an impact fee of $3000 to $5000. The local government of Indiana charges impact fees.

    Cost to build a house in Indiana FAQs

    How can I save money when building a house in Indiana, IN?

    Money is saved by reducing total building costs, choosing the right choices, finalizing the perfect piece of land, and working closely with a developer to make the entire process seamless, easy, and cost-effective.

    The average home price in Indiana is $191,054 and is lower than other US cities.

    How expensive is it to build a house in Indiana?

    Building a house in Indiana costs anywhere between $90 to $150 per square foot, and this cost does not include prices of appliances, impact fees, maintenance charges, and insurance charges. The charges may not seem affordable to many but are lower as compared to other cities in the US.

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

    The median price to build a 2000 sq ft house in Indiana is about $130 per square foot. The prices of building costs have increased post-pandemic, and the cost per square is expected to rise further in the coming years.

    How much does it cost to build a house in Fort Wayne?

    It costs about $116.13 per square foot to construct a basic structure in Fort Wayne. The ideal range is between $93.47 to $138.78.


    Owning or building a house comes with its own set of challenges and difficulties. It is essential to keep track of the budget while designing or building a house.

    Indiana is one of the best places to raise a family in the midwestern US and has an affordability rate. The cost of living in Indiana is less than other prime cities and yet provides a decent infrastructure of amenities and facilities.

    Various factors and guidelines are listed to understand the building costs in Indiana.

    Do check them out and let us know in the comments below.

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