Discover the Cheapest States to Build a House in the U.S.

Factors Influencing Construction Costs

If you want to build your house, in addition to knowing which are the cheapest states to build a house, there are other factors you need to analyze before starting a construction process. This way, you can reliably reduce costs without sacrificing the quality of the construction. Here are the factors that influence the construction costs of a house in the United States:

Cost of Materials and Labor

The first thing you need to know before building a house is the average construction cost in the United States, which is approximately $284,057. This may be considered quite expensive by many, but the reality is that the average minimum price of a home for sale is $408,800.

After knowing this and being willing to proceed with the project of building a house, you need to analyze and budget for the cost of materials and labor. You must decide on the land where you will build the house, purchase the lot, and comply with all legal processes.

Additionally, you have to choose the most suitable labor for you and, in turn, buy all the necessary materials for the construction of your home. It is important to keep in mind that inflation and supply chain disruptions can affect the cost of materials. For example, in recent years, there has been an increase in construction material costs due to the constant rise in inflation, material demand, shortages, and supply chain issues. However, it is believed that by 2025 the construction sector will stabilize, which will reduce construction material costs.

Moreover, the geographical location where you decide to build your new home also influences costs, as the price of labor and materials varies depending on where you are. This is precisely why you need to analyze which are the cheapest states to build a house.

It is also important to note that prices vary between urban and rural areas within the state you choose to build your home.

Discover the Cheapest States to Build a House

Many people decide to build their own house, seeing it as a great investment for the future. That’s why it’s important to know which are the cheapest states to build a house.

In addition to knowing which are the cheapest states to build a house, it’s important to consider that the cost of building a home depends on the location, the size of the house, the materials used, and the cost of labor.

According to the National Association of Home Builders, the average cost of building a home across the country is approximately $284,057, a cost that varies depending on the type of home you desire. However, you can reduce the cost of building your home if you decide to build in one of the states that offer better opportunities for savings. Here are the cheapest states to build a house:

Mississippi

If you are wondering which are the cheapest states to build a house, Mississippi definitely takes the number one spot. Its cost of living is quite affordable, and its climate is ideal for those who are not fans of cold weather, with mild winters, plenty of open spaces, and a vibrant community perfect for family living. Additionally, Southern cuisine is delicious, and the people are very hospitable.

The average cost of building a house in Mississippi is quite low compared to other states, allowing you to build an impressive Southern-style home along the Gulf Coast and in major cities like Jackson and Hattiesburg. According to HomeAdvisor, the average cost of building a house in Mississippi ranges from $180,000 to $300,000, depending on your preferences, the materials used, the size of the house, the labor, and the location of your new home.

West Virginia

West Virginia is another one of the cheapest states to build a house, known for its stunning mountains and natural landscapes. If you decide to build your home in this small state, you can enjoy beautiful parks and a peaceful life.

In West Virginia, you have the option to finance the construction of your home by applying for a fixed or variable-rate mortgage. Some banks, such as First Exchange Bank, can finance up to 89.99%; you just need to choose an interest rate, either fixed or variable.

Additionally, West Virginia offers the Ascend West Virginia program, where you can receive up to $12,000 if you are willing to move to the state and have a remote job. There is also a tax benefit plan for new residents who apply for this offer, which significantly reduces your costs.

Alabama

Alabama is one of the most affordable places in the United States, with relatively low healthcare and housing costs compared to other areas. Besides having a low cost of living, it is notable for its job development, especially in the technology sector.

This state is a four-hour flight from major cities like Miami and has a Southern charm that will make you feel very comfortable. In Alabama, you can build houses costing between $209,888 and $850,000, depending on what you want.

Oklahoma

Another of the cheapest states to build a house is Oklahoma, where the average cost of building a home is $90 per square foot, a relatively low cost compared to other states.

Oklahoma has fertile land, with well-developed agriculture and mining industries, providing various job opportunities. Additionally, Oklahoma has plenty of available land for building, giving you multiple options for constructing your dream home.

Kansas

Known for its vast plains and agriculture, Kansas enjoys beautiful landscapes and job opportunities in the agricultural sector. It is also one of the states with low construction costs, averaging approximately $101 per square foot.

Kansas has plenty of available land for building, which is another plus. If you like the Southern style, this state might be your best option to start a new life in a house designed by you.

Iowa

Another option is Iowa, where you can build a house at a lower cost than in other parts of the United States. The city is traversed by the Iowa River, offering many green areas ideal for walking and exercising, as well as various places of interest like historical sites such as the Old Capitol, museums, and parks.

The cost of living in Iowa is moderate, depending on the type of home you want to live in. The larger and more expensive the area, the higher the cost of building your new home.

Ohio

According to HomeAdvisor, the cost of building a house in Ohio ranges from $290,000 to $345,000, depending on the location, the size of the home, and the luxuries you want to add. Ohio is a good option because it is a major industrial center in the United States, with significant sources of income such as coal mining, agriculture, and tourism.

Georgia

If you want to build your house, Georgia is one of the best options, as it has a low construction cost, with the average cost of building a home being $171,883. Georgia also offers beautiful natural landscapes, such as mountains and prairies, delicious traditional food, fantastic leisure spots, and a low cost of living.

Kentucky

Kentucky is another one of the cheapest states to build a house, with the cost of building a house being approximately $175,000. The state offers a good quality of life and economical living costs, making it a highly prosperous area with great opportunities for professional growth and saving money for a better status.

Indiana

Indiana is one of the best states to live in the United States, offering an affordable cost of living, with property taxes not being too high. Building a house costs around $284,057. This state is known for its farmland and the Indianapolis 500 car races. It also offers great theaters, art museums, monuments, and galleries that you will surely love.

Comparison: Building vs. Buying

Many people prefer building a house over buying one, as it is often the best way to reduce costs while designing your home to your liking. However, to achieve this dream, you need to know the advantages and disadvantages of building a house in the United States, and here we will discuss them:

Advantages of Building a House

• You can completely customize your home.
• There is less competition when buying land.
• New homes typically require less periodic maintenance.
• New homes are usually healthier because you can avoid materials like asbestos or lead paint.
• Better energy efficiency, as you can opt for green architecture.
• Building a house can often be more economical than buying an existing one.

Disadvantages

• More time and stress, as building a house is not a quick process.
• Requires more effort since you have to be heavily involved.

Tips for Saving Money When Building a House

If you want to build a house without it being too expensive, these tips will help you:

Choose the Right Land

One of the major initial expenses is the land where your new home will be built, so you need to analyze which option is best for you.

Choose a plot that has the right size and shape for what you want. It is also beneficial to find land with public services such as water and electricity supply, as this will save you a lot of money.

Design a Simple House

The less complex the house, the less expensive the construction will be. Simple designs also allow for better use of space.

Plan the Budget in Advance

Before starting the entire construction process, it is necessary to plan a detailed budget to avoid unpleasant surprises when beginning construction.

Use Affordable and Durable Materials

The materials you use in construction also have a significant impact on costs, so it’s better to use affordable but good-quality materials.

Do Some Tasks Yourself

If you have construction knowledge, it’s a good option to do some tasks yourself, reducing expenses.

Now that you know the cheapest states to build a house, which of these states interests you the most?