Cost to Build a House: Price per Square Foot, Land, Construction Loans and Budget
The median contract price to build a house in the United States was $404,000 in 2025, according to the Census Bureau's annual Characteristics of New Housing. That is the price on the contract with the builder for a house built on land the owner already has. It does not include the land. Per square foot of finished floor area, the median was $171.57. This page breaks those figures down by region and year, lists the costs the contract price leaves out, and explains how construction loans work.
The Short Answer
- $404,000 was the median contract price of new contractor-built single-family houses started in 2025. The average was $576,500.
- $171.57 was the median contract price per square foot in 2025. The average was $198.33.
- The median contractor-built house completed in 2025 had 2,433 square feet of finished floor area.
- Land is extra. The Census contract price "does not include the cost of the land," and it also leaves out change orders and work by other contractors on the grounds.
"Contractor-built" is the Census term for a house built for the owner to live in, on the owner's land, under a single general contractor. These figures come from the Census Bureau's Survey of Construction, which HUD partly funds. The 2025 annual data were published on July 1, 2026.
Cost per Square Foot
Cost per square foot lets you compare houses of different sizes. Census computes it from the contract price and the house's finished floor area. Finished floor area is all completely finished space, including finished basements and attics. It does not include a garage, carport, porch, unfinished attic or utility room, or any unfinished part of the basement.
| Contract price per square foot | 2024 | 2025 |
|---|---|---|
| Median | $165.15 | $171.57 |
| Average | $184.55 | $198.33 |
The median price per square foot is not the median price divided by the median size. Census defines a median as the middle value of all values reported for a characteristic, so each median is the middle of its own list and the three can come from different houses.
Cost to Build by Region
Building costs differ across the four Census regions. In 2025 the South had the lowest median price per square foot and the Midwest the highest.
| Region, 2025 | Median contract price | Average contract price | Median per sq ft | Average per sq ft |
|---|---|---|---|---|
| Northeast | $431,100 | $745,900 | $179.30 | $246.26 |
| Midwest | $457,200 | $546,100 | $194.09 | $202.13 |
| South | $388,100 | $558,400 | $157.30 | $179.96 |
| West | $377,200 | $535,700 | $176.87 | $213.85 |
| United States | $404,000 | $576,500 | $171.57 | $198.33 |
The average is above the median in every region, which means some higher-priced houses pull the average up. The median, the middle house, is the closer guide to a typical build.
How Building Costs Have Changed Since 2019
| Year | Median contract price | Median per sq ft |
|---|---|---|
| 2019 | $281,700 | $116.16 |
| 2020 | $298,500 | $124.95 |
| 2021 | $343,600 | $131.23 |
| 2022 | $388,500 | $156.93 |
| 2023 | $400,700 | $163.15 |
| 2024 | $356,200 | $165.15 |
| 2025 | $404,000 | $171.57 |
From 2019 to 2025 the median contract price rose about 43% and the median price per square foot about 48%. The median price fell in 2024 and then rose about 13% in 2025, while the price per square foot rose every year. Year-to-year moves in the median price also reflect the size of the houses being built: the median contractor-built house completed in 2024 had 2,422 square feet, down from 2,529 in 2023. That is one reason to watch the per-square-foot figure.
What the Contract Price Leaves Out
The Census contract price is the price on the original contract with the general contractor. By the Census definition, it does not include:
- Land. The house is built on the owner's own land, so "the contract price does not include the cost of the land."
- Change orders. Price changes after the original contract, from change orders or other factors, are generally not reflected.
- Work by other contractors on the grounds. Contracts awarded to a different contractor for work on the grounds around the house are not included.
- Spending after completion. Planned spending on the house after the general contractor finishes is not included.
Your budget has to cover these items on top of the builder's price. If you borrow, it also has to cover the loan's closing costs. For a list of typical fees, see our guide to closing costs.
Land and the Lot
No federal survey publishes a national price for the land under owner-built or contractor-built houses. Census does report lot size. The median lot for a contractor-built house completed in 2025 was 42,135 square feet, just under an acre, and the average was 147,898 square feet.
A buildable lot costs more than the raw land. Census defines lot value to include the undeveloped land plus grading, drainage, gas or electric lines, water pipes or wells, sewer lines or septic tanks, sidewalks, curbs, gutters, driveways and retaining walls. If your land has none of these, get quotes for each one before you set a budget. Prices for land and for these items vary a great deal by location.
How Construction Loans Work
If you borrow to build, the usual tool is a construction loan rather than a standard mortgage. HUD's handbook for FHA-insured loans defines a construction loan as "a short-term interim loan for financing the cost of construction." FHA's construction-to-permanent program, set out in HUD Handbook 4000.1, shows how one common type works:
- One closing. The program combines a construction loan and a long-term permanent mortgage with a single closing before construction starts.
- Your land. You must own the land already or buy it at the closing of the construction loan.
- A licensed builder. You must have a contract with a builder who is a licensed general contractor. You can act as your own general contractor only if you are a licensed general contractor.
- Loan size. The loan is based on the lower of the appraised value or the documented cost. That cost includes the builder's price, options you pay for, closing costs on any interim land financing, and the land.
- Draws. After any land purchase is paid at closing, the rest of the loan goes into an escrow account and is paid out as construction progresses. The lender needs your written OK before each draw to the contractor.
- Rate. The rate may float during construction within a range set in writing, with a cap on the permanent rate. The lender qualifies you at that maximum rate.
- After the build. Leftover construction money goes to pay down the principal. Payments on the permanent mortgage must start no later than the first of the month after 60 days from the final inspection or certificate of occupancy.
Other loan programs and lenders set their own rules for construction financing. Ask each lender how draws, inspections, rate locks and the switch to a permanent loan work before you sign with a builder. If you already own the land and the house is finished, HUD's separate "Building on Own Land" rules cover permanent FHA financing of the new house, and that loan can pay off the construction loan.
How to Budget for a New Build
Start with the builder's price, then add the costs the contract price leaves out:
- The house: the builder's contract price, or the sum of subcontractor bids and materials if you manage the build.
- Land, if you do not own it yet.
- Site work: grading, drainage, utility lines, water and sewer or well and septic, and the driveway.
- Options and extras you pay for outside the builder's price.
- Loan closing costs, including any interim financing of the land.
- A cushion for change orders and items not in the original contract.
Hypothetical example. A 2,000-square-foot house at the 2025 national median of $171.57 per square foot would come to $343,140 for the house alone. At the regional medians it would be $314,600 in the South, $353,740 in the West, $358,600 in the Northeast and $388,180 in the Midwest. These are illustrations made from the Census medians, not quotes. Your builder's bid, your finishes and your site decide the real number, and land and site work come on top.
Building vs Buying a New House
The median sales price of a new single-family house sold in 2025 was $417,400, and the average was $523,800. Unlike the contract price, the sales price includes the improved lot. So the median builder-built house for sale, with its lot, cost only a little more than the median contract price to build a house without land.
Per square foot, with the lot left out of both, the median new house sold in 2025 cost $154.79, compared with $171.57 for contractor-built houses on the owner's land. The two groups differ in size, location and finish, so this is a rough comparison, not a like-for-like price. For prices of new and existing homes, see our average home price guide.
Sources & Methodology
- Contract prices, price per square foot, floor area, lot size and new house sales prices: Census Bureau, Characteristics of New Housing, annual tables for contract price, contract price per square foot, square feet, lot size, sales price and sales price per square foot.
- Definitions of contract price, sales price, contractor-built houses, floor area and lot value: Census Bureau, Survey of Construction definitions.
- Construction-to-permanent and Building on Own Land rules: HUD, Single Family Housing Policy Handbook 4000.1 (last revised August 12, 2026).
- All sources retrieved November 7, 2026. Dollar figures are not adjusted for inflation. Percent changes and the example are our arithmetic from the Census figures. The budget example is hypothetical.
FAQ
How much does it cost to build a house?
The median contract price for a contractor-built house started in 2025 was $404,000, not counting land. The average was $576,500.
How much does it cost to build a house per square foot?
The 2025 median was $171.57 per square foot of finished floor area, without land. By region it ranged from $157.30 in the South to $194.09 in the Midwest.
Does the cost to build include land?
No. The Census contract price leaves out the land, change orders, work by other contractors on the grounds, and spending after the builder finishes.
Is it cheaper to build or buy a new house?
In 2025 the median new house sold, lot included, was $417,400, while the median contract price to build was $404,000 without land. Land and site work come on top of the cost to build, so compare your full build budget with the price of new houses for sale near you.
Can I be my own general contractor?
Census counts these as owner-built houses. For an FHA construction-to-permanent loan, you can act as the general contractor only if you are a licensed general contractor. Other lenders set their own rules.
This article is general information, not financial or legal advice. Figures are national and regional medians and averages from Census surveys, and the budget example is hypothetical. Get written bids from licensed builders and loan terms from lenders before you commit to a build.
