Where Are the Most Expensive Areas to Build a Custom Home in the U.S.?

When building your own home, there are endless ways you can cut costs to stay within a budget.

But did you know that the part of the country in which you build your new home can have an impact on its cost?

New research from the National Association of Home Builders (NAHB) shows that homes built in New England and the mid-Atlantic states cost more on average per square foot than homes built in the south or the midwest.

Specifically, a new custom-built home in the middle Atlantic region, which includes states like New York, Pennsylvania and New Jersey, would cost $131 per square foot, according to MarketWatch. A new house on the west coast typically costs $103 per square foot.

The least expensive place to build a new home? The “West South Central” region, which consists of Texas, Arkansas, Louisiana and Oklahoma. Throughout this area, a new home costs just $73 per square foot to build.

“There’s a pretty even mix of people looking between locations and the types of homes that are available, no matter what the square footage cost. Certain areas demand a higher square footage. Normally our customers are less price sensitive to the square footage and more interested in making sure their home has the features they want,” says Erik Cocks, Marketing Manager for Arthur Rutenberg Homes.

According to MarketWatch, some of the main reasons why it costs more to build a custom home in some areas are higher average wages for construction workers and the area being more in-demand.

Another possible reason? People who choose to build their homes in the Northeastern U.S. are more likely to outfit their homes with nicer, more expensive materials, appliances and finishing touches.

“It’s the level of finish, the level of accessories,” David Crowe, NAHB’s chief economist, explained.

So before you build a custom-designed home, you may want to take its location into account before construction begins.

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