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If you want to live in a newly constructed house, you have two choices: You can buy a finished home from a builder, or you can have one built from scratch. Either choice can be incredibly expensive: The cost of building a new house in the U.S. ranges quite a bit, with $332,397 being the national average, but the final price depends on a wide range of factors.
If your eyes are watering looking at those numbers, you might wonder if there are ways to spend less. Well, if you already have a plot of land that&#;s properly zoned for a house, you actually can reduce the cost of building your dream home significantly via two main cost vectors: The construction techniques employed, and the style of your house. If cost is your main concern when building your new home, here&#;s an overview of the choices that will save you some cash during the process.
How you build your house has a huge impact on the cost. Options that are cheaper than the traditional approach include:
Cob (cost range: $30,000 - $90,000). Building a home takes either money or sweat equity. The more of the latter you&#;re willing and able to provide, the cheaper the build will be in terms of the former. ANd cob requires a lot of sweat equity. Similar to adobe, cob is a mixture of sand, clay, straw, and water that is formed into clumps which are then used to construct thick walls. Because you&#;re using materials that are found at your build site (or that can be obtained very cheaply) and doing the manual labor yourself, you can build a cob house at a very low cost (for example, these folks built one for $20,000). Cob houses are very sturdy and durable once they&#;ve cured, but be aware that it can be difficult to get local permits for one, and difficult to get financing.
Container (cost range: $25,000 - $250,000). Constructed from one or more shipping containers, these homes can be cost-effective because they&#;re essentially modular. Once you have a foundation, the containers provide walls and a roof made from a durable material, and you can create anything from a simple one-room studio to a more complex multi-level home simply by adding more containers. Of course, shipping containers are pretty bare bones, so you&#;ll have to add everything else, from wiring and plumbing to roofing materials and windows.
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Barndominium (cost range: $153,000 - $182,000). A barndominium is essentially a prefabricated barn shell&#;a large, open barn-like building typically made from metal&#;that is anchored to a foundation. These are typically pretty big, requiring a lot of land to build on, but they can be very affordable because the exterior of the home arrives ready to assemble, and there&#;s not a lot of complexity to deal with in terms of floorplans.
Modular homes (cost range: $180,000 - $360,000). A modular home is a prefabricated home that arrives in large sections that are assembled on-site. Because the modules are made in a factory, the overall costs can be much less than a traditional home build. You can reduce those costs even further if you do the build yourself; you can find small whole-home kits for less than $10,000, and it&#;s possible for one person to build a &#;kit home,&#; meaning you won&#;t need to spend much on labor outside of licensed pros for stuff like plumbing and electric.
The other factor that impacts the cost of building a new home is the style of the house. This boils down to the obvious: The simpler your home is, the cheaper it will be to build. The lowest-cost choices include:
Tiny homes. Tiny homes, typically 400 square feet or smaller and often built to be moved around, can be very economical to build simply because of their small size. Tiny homes can get surprisingly lavish, however, and costs will vary depending on your choices of materials and the area you&#;re building in. On the flip side, if you do the work yourself and source your materials skillfully, you can build one for less than $15,000.
Ranch homes. A ranch-style house (or any home that&#;s essentially a single-story rectangle, L-, or T-shaped layout) is usually the cheapest style of home to build because it&#;s restricted to a single floor. The efficiency of the layout and keeping things close to the ground removes a lot of the costs associated with more complex house styles.
Colonial. If you need two floors in your new home, a Colonial is the best choice because it&#;s essentially a box. Similarly to ranch-style homes, this simplicity of shape and layout helps to keep costs down.
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