Average Cost to Build a House In Texas

Cost to build a house in Texas

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    Currently, the real estate market of Texas is witnessing less supply of properties and high demand of buyers. This means that searching for a decent property is near to impossible without being a part of bidding wars. As property prices have risen sky high, many people are considering building new homes or even changing houses to earn a profit. As a result, brand new homes are built to meet the vast demand for new homes.

    While it is easier and less expensive to buy a resale house, it is not even stopping people from building their dream home as it will provide them a chance to create their design and customize it from the ground level itself. 

    In the present day, building a house in Texas could be a great decision as you can sell it to earn a profit. Even though the cost of a house, construction materials, and other additional expenses are high, you can still be able to earn profit and self-satisfaction from that property, which you might not get while buying a resale home. If you are considering building a house and want to know the average cost to build a house in Texas, read on to learn more about it and what other factors you must consider while building your dream home.

    Cost to build a house in Texas

    Is building a house in Texas more expensive than in other states?

    Generally, building a home in could cost a fortune and this cost may vary according to the area of construction, building cost, the design of the house, and other varying factors. However, there are still some places where building a house could be more favorable and one of such places in the US is Texas. The cost of building a house in Texas is cheaper due to the following reasons;

    • Availability of cheap land. Lands aren’t just available in Texas but are also cheaper. 
    • Strong economy. With a generally low wage, prices in Texas become lower. 
    • The abundance of labor at a lower cost. 
    • Accommodating warm weather makes it possible to manufacture at any time of the year.

    All these and more are what make building homes in Texas richly affordable, unlike any other US state. If the cost difference between California and Texas is explained, the average cost to build a house in California is $387,500 which is much higher than Texas and even the US average.

    Should you buy or build a new house in Texas?

    If you have recently made your move to Texas and thinking of purchasing a home, you are definitely making an important decision in your life as building a home in a new state takes more strategic planning and decision. Housing prices in Texas can be much more affordable than in any other part of the country, even constructing a new home can be much more affordable when it is compared to other states like California. However, in Texas, the cost of a resale house is much lesser than constructing a brand new home.

    Although, building a new home can be a daunting task and wearisome, However, the conveniences that come with designing your dream home are much more exciting.

    Therefore, if you are searching for an affordable option, you might check out buying a resale home or else, if you are satisfied with the complications and inconveniences that might come while building a home, then why not make your dream home come true?

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    Average Cost to Build a House in Texas

    Building a house in the Lone Star state might cost anywhere around $235000 – $660,000, however, the average cost to build a house in Texas is expected around $447,500. The amount that you will need to pay might vary significantly due to many factors—ranging from the home’s size, type or design, location, labor, features, materials, and finishings.

    However, in summing up the total cost, you will have to consider the varying factors listed above—including building plans and permits, labor, materials, types of equipment, and others. 

    Building House

    Texas House Materials Prices

    In building a home in Texas or anywhere in the world, the role of materials can never be overlooked as materials make up 60% of the total cost of an average of $447, 500. However, the average cost for building a home in Texas also varies depending on the type of desired materials.

    Choice of material depends on the homeowners—whether you want a long-term durable material, materials that are eco-friendly, with less energy and social costs—this depends largely on you and will largely affect your budget. The material cost to build a house is about $50 per square foot or between 41.5% and 51% of the build cost. Materials commonly used in building homes in Texas are as follows:

    1. Lumber Cost in Texas

    Lumber is one major building material that represents a substantial portion of the total cost of materials. It is commonly used to construct your home’s frame. Nationwide, lumber costs an average of $25,000 to $65,000. Lumber is also considered as woods and timbers used in the construction of a home.

    2. Concrete Cost in Texas

    Concrete is a specific building material commonly used in the home foundation. And Texas is a land blessed with abundant sand and gravel, making your concrete to be readily accessible and available at a much cheaper rate than any other US state. The average cost of concrete is about $1,000 to $10,000. However, don’t be stingy in spending on concrete for a solid foundation that will carry your desired home.

    3. Flooring Cost in Texas

    This is an important aspect to consider in building your own home. Flooring typically costs between $1 to $5 per square foot. As a homeowner, you can choose between floor options—like tile, wood, concrete, and many more.

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    4. Siding Cost in Texas

    Siding is another building material that must be considered in Texas. Siding covers and protects your home and other parts of the building against endangering elements. On average, siding cost about $2 to $15 per square foot. Siding materials could be wood, cedar shingles, and vinyl.

    5. Roofing Cost in Texas

    Your home is never complete without a roof. But not just any roof! A solid roof that could provide you that aura of shelter and comfort. Typically, roofing materials should cost between $3,000 and $6,000. However, this is different in installing a high-end solar roof in Texas.  Besides the fact that getting building materials is quite cheap, it is also very accessible, especially for those building in North Texas.

    You might be wondering, where your workers and laborers would take their meals during the ongoing construction period. Well, there are ample restaurants in Longview Texas and other parts of the city. These restaurants are situated just at the right places where food and comfort can be made available to all the people of Texas. You can book a nearby restaurant and ask your workers to have their lunch or dinner.

    In Texas, currently, construction materials are affected by the rise in property values. In fact, the lumber and construction materials costs have doubled since last year. If you are planning to build a home now or in the upcoming years, this price increase will definitely cause a rise in construction costs. If the inflation rates rise, the building material prices will surely increase and affect the level of production.

    Texas Budgeting for construction costs

    Residents of the US had already realized how affordable and safest Texas is to live in. The affordable cost of living, the housing market, and low tax rates are the key reasons why people are migrating from other US states to Texas. Also, there are many safest places to live in Texas for families with lesser crime rates, which is why residents feel safe making a move. As soon as they move into Texas they feel like buying a new home or resale house instead of living in a rented home for a long time.  

    Cost to build a house

    In Texas, construction costs take a major share of the overall budget. Keeping the average building cost in mind, you have to divide and make a budget for every construction stage. While budgeting, make sure to figure out the labor costs, materials costs, and size of the house you would like to build. These factors might affect the total cost and your decision depending on the situation.

    While construction you might face a continuous ripple effect i.e. facing temporary demand-supply issues brought to you by the changes in lumber prices in Texas. Not to worry about it! as lumber prices are now drastically sinking and now is the right time to start considering if you were waiting for a long to build your home.

    Another factor you might consider is fluctuations in building materials costs. Make sure to research material costs that are available nearby the construction site and keep the construction schedule flexible to prevent overpaying or interruption on your new home.

    Cost to Build a House in Texas by Square Foot

    The cost of building a house in Texas is never constant since the changes in material costs, labor costs, site location, and now lumber costs might lead to a new house potentially costing more than it used to be earlier. While South Texas witnesses higher building prices and affordable material costs, vice-versa are experienced in other areas of Texas. This is due to the demand and supply curve that drives the prices up. All in all a custom home design might cost you more than a simpler and easier one.

    1. Price By Home Size

    Development costs will make up a huge part of the general structure spending plan. The typical expense per square foot will in general fall around $113 while the typical expense of a solitary family home in Texas is roughly $213,666. Interestingly, the bigger your house, the bigger the budget.

    Similarly, the average cost to build a 1500 sq ft house in Texas ranges between $135,000 and 185,000, and the average construction price of a 3000 sq ft house ranges between $280,000 to $320,000 as per the National Association of Homebuilders. Interestingly the bigger your home, the bigger your budget will be.

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    2. Price By Location

    If you are building a home in Texas, the average cost to build a house per square foot ranges from $91 and $134 per square foot. However, this cost might vary depending on which city or location you are building your home. By adding profit, overhead, and finishing, the average cost might cost around $120-$170 per square foot depending on the region. 

    House location

    Cost per square foot to build a house in regions of Texas

    RegionCost per square foot 
    North Region$125 and $175
    South Region $90 and $134
    Midwest region$80 and $120
    North East $125 and $175

    Home Customizations Prices

    There are various kinds of homes. However, in building a custom home, the whole architectural design, material, and cost will automatically change.

    Custom homes are much of the time stand-out upscale homes that highlight numerous exceptional design subtleties. By building a custom home, you can tailor-fit your home’s highlights to suit any design or need, whether it’s extra rooms, a storm cellar, specialty rooms, or a decent patio and carport—including features that fit your lifestyle having consolidated the most recent patterns and innovations.

    In building a custom home, employing the help of a professional architect will do you some good. One with a professional advisor who will assist you with getting criticism on estimating and stay away from additional expenses in overdesigns.

    Deciding to go custom is one way to reduce the price of your dream home to about 75% or less of your final costs. There you can consider land cost, budget, finishing costs, designing interiors, and more which can sum up to $80,000 or more.

    Finishing Costs

    Unlike material costs, the maximum portion of your budget is devoted towards finishing as well as interiors and exteriors costs, which will cover everything that will expound the look and feel of your new home. In fact, customizing aspect is the reason why people choose to build new. Ultimately, this step might seem fun but will end up being the most expensive part.

    Finishing house

    Generally, while budgeting, plan to keep aside 25% of your budget for exterior and interior finishes. Not only do interior finishes like cabinets, flooring, appliances, lighting, and roofing, matter; but exterior finishes such as trim, shutters, siding, wall designs, and more also are considered.

    The finishing material quality also has a great impact on the overall functionality, look, construction cost, and value of the home. While on average normal finishes cost around $90 per square foot, upgraded and luxury finishes cost around $170-310 per sq ft.

    Average Cost to Build a house in Texas FAQs

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

    Building a 2000-square-foot home costs an average of $125 per square foot. This is summed from the average cost per square foot which ranges between $91 and $134 per square foot.

    How does it cost to build a 2500 sq ft house in Texas?

    The fundamental cost most property holders will pay to construct a 2,500-square-foot home is $250,000, while a passage-level custom home of a similar size will average around $388,000, and a very good quality custom home is around $1,000,000.


    Texas has a booming real estate market and the demand-supply of houses, be it resale or new homes is increasing quickly, constituency ending up constructing brand new houses as investment properties. Buying resale homes might keep you on the cheaper side than building a home of that same size and location, but the amount of satisfaction you will get by doing the latter will definitely take you to another level.

    If building a new home in Texas is your next move, you are not alone as Texas in continuously leading the nation in building permits. Till now, 96,670 permits have been issued for building single-family houses in Texas. The one thing you must keep in mind while building your new home in Texas is always going for correct and affordable materials, labor, and construction time to avoid overbudgeting, losses, and failures during the construction.

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