What’s The Average Cost to Build a 1500 Square Foot House?

How much house is a 1,500-sq.-ft.-home?

It’s hard to picture what the floor plan for a 1,500-square-foot home looks like, isn’t it? The average home of this size typically has:

You could choose a single-story layout or a split-level layout. Some layouts will feature a garage or carport, a porch, or a patio. All in all, it’s a good-sized home!

Average cost to build a 1,500-square-foot house by region

The regional average of a 1,500-square-foot home is going to depend on the materials used, the exact region you’re in, if you are going to build a home in a community, or if you want a custom home.

The average price range for this size home runs between $155,000 and $416,250, but the national average cost is around $248,000 — though building can cost a lot more if you want to go fully custom.

“If I was a kid today and I had the money, I’d go to the South and buy lots of land and quickly build houses because houses get sold the same day you put the ‘for sale sign’ out front!” Russell Wing, a top-selling real estate agent in Union County, North Carolina, shares.

Keep in mind that these are just regional averages. The average price range per square foot for particular cities may not fall within even the regional average. For example:

Note: Estimated price ranges are based on figures found on various home construction sources.

Breaking down the costs by the job

There are a lot of steps to building a house, but how is that money used? We’ll use NAHB’s Cost of Constructing a Home study to estimate the breakdown of a 1,500-square-foot house that costs $248,000.

Land development and site work — 6.2% of total cost

Before building, you have to prepare the plot of land for construction. This will include obtaining building permits, an impact fee, water and sewer inspections, architecture and engineering, and other costs.

• Building permits — 1.7% ($4,216)
• Impact fee  — 1.3% ($3,224)
• Water and sewer inspections  — 1.5% ($3,720)
• Architecture and engineering  — 1.5% ($3,720)
• Other fees  — 0.2% ($496)

Total average cost: $15,376

Foundation — 11.8% of total cost

The first step in building a house is laying the foundation.

The cost of the foundation is going to depend on the type of foundation you’ll have — basements are more expensive than a slab foundation, and a slab foundation is more expensive than a crawlspace.

• Excavation, concrete, retaining walls, pour foundation, and backfill — 11.8% ($29,264)
  • Average cost of a concrete slab — $4 to $16 per square foot ($6,000 to $24,000)
  • Average cost of a concrete crawl space — $5 to $16 per square foot ($7,500 to $24,000)
  • Average cost of full concrete basement — $10 to $25 per square foot ($15,000 to $37,500)
• Other — 0.05% ($1,240)

Total average cost: $30,504

Framing — 17.4% of total cost

Once the foundation has time to cure (a chemical process the concrete goes through to reach maximum strength — this can take 14 to 21 days for the whole process), the construction team can begin framing the house.

Framing costs will vary depending on materials used, the layout of the home, and the number of stories.

• Framing and roof — 13.7% ($33,976)
• Trusses (if not included with the cost of framing the roof) — 2.1% ($5,208)
• Sheathing (if not included with the cost of framing) — 1.1% ($2,728)
• Materials (metal and steel) — 0.3% ($744)
• Other — 0.2% ($496)

Total average cost: $43,152

Exterior work — 14.1% of total cost

Exterior work includes wrapping the house, installing insulation, putting up the siding, and installing doors and windows.

The average cost for exterior work will depend on the materials used. For example, energy-efficient windows and doors are going to cost more than your run-of-the-mill varieties.

• Finishing exterior walls (wrapping, insulation, and siding) — 6.5% ($16,120)
• Finishing roofing (depends on the type of shingles/materials) — 3.4% ($8,432)
• Installing windows and doors (and garage door if applicable) — 4% ($9,920)
• Other — 0.2% ($496)

Total average cost: $34,968

Installing major systems — 14.7% of total cost

Major systems include the installation of plumbing, electrical, and HVAC systems.

It does not include hooking up light fixtures or other details. Those costs will be included with the interior finishes.

• Plumbing — 5% ($12,400)
• Electrical — 4.7% ($11,656)
• HVAC — 4.8% ($11,904)
• Other — 0.3% ($744)

Total average cost: $36,704

Interior finishes — 25.4% of total cost

There’s a broad range of costs associated with finishing the interior, and each of those costs is highly dependent on the materials used.

• Interior insulation  — 1.7% ($4,216)
• Hang drywall  — 3.6% ($8,928)
• Install interior doors, install trim, hang mirrors — 3.6% ($8,928)
• Painting  — 2.8% ($6,944)
• Lighting — 1.2% ($2,976)
• Cabinets, countertops — 4.6% ($11,408)
• Appliances— 1.6% ($3,968)
• Flooring — 4% ($9,920)
• Plumbing fixtures — 1.4% ($3,472)
• Fireplace — 0.6% ($1,488)
• Other — 0.3% ($744)

Total average cost: $62,992

Final steps — 6.8% of total cost

The final steps include landscaping, laying down a driveway, building an outdoor structure (such as a deck or patio), and cleaning up.

• Landscaping  — 6.8% ($16,864)
• Building an outdoor structure(s) — 2.2% ($5,456)
• Laying a driveway — 1.2% ($2,976)
• Site cleanup — 1% ($2,480)
• Other — 0.1% ($248)

Total average cost: $28,024

Other — 3.8% of total cost

Things that fall under this category include financing costs, overhead, and profit before taxes. To get a better understanding of what other expenses you will have, please ask the contractor for a thorough price breakdown.

Total average cost: $9,424

Is a 1,500-square-foot house worth it?

If you’re building a house, you can expect to spend $150+ per square foot. By estimating the average cost to build a 1,500-square-foot house, you’ll have a better idea of how far your budget can go.

Just remember that the cost of labor and materials may be different in your area, which will affect your bottom line.

The cost of everything has skyrocketed due to the coronavirus pandemic. You’re going to have to take this into consideration because while you may have set aside $10,000 for high-grade cabinets and countertops, your $10,000 may only get you builder-grade items.

Wing gives his perspective: “It depends on what part of the country you live in. If you live in South Dakota, you can probably build a nice custom home without spending nearly as much as you’d spend in Los Angeles — you’d spend five times as much!

“So for people who come down south from a place like New York City, a $232,000, 1,500 square foot house probably seems cheap.”

Header Image Source: (Roger Starnes Sr / Unsplash)