Expenses Involved in Constructing a Residential Property

Expenses Involved in Constructing a Residential Property

Building a house in the United States comes with varying costs, depending on factors such as location, materials, and customization. According to data from the National Association of Home Builders (NAHB), the average cost to build a single-family home in the US is around $428,215, although this figure can range significantly.

The cost breakdown for a typical house follows a general pattern, with major stages or components accounting for specific percentages of the total construction cost. Here's a breakdown of the approximate percentages for each stage:

1. Site Work/Preparation (5-10%): This stage includes building permit fees, impact fees, sewer/water fees, inspection, architecture, and engineering.
2. Foundation (10%): The foundation of a house should cost about $34,850, which is about 11.8% of the total expenses of building a house in the US.
3. Framing (structure) (20-25%): Framing includes sheathing, trusses, and sometimes roofing. Hiring a professional for framing is recommended due to its complexity and adherence to building code. Framing costs up to $51,589, which is 17.4% of the total cost of building an apartment.
4. Exterior Finishes (roofing, siding) (10-15%): Exterior finishes can cost around $41,690, which equates to 14.1% of the total cost of building a house in the US.
5. Major Systems (plumbing, electrical, HVAC) (15-20%): The major systems installation phase involves the installation of plumbing and HVAC systems, and an electrician will wire your home to get you connected to the power grid. The major systems installation phase can cost up to $43,668 or more, equivalent to about 14.7% of the project's total cost.
6. Interior Finishes (drywall, flooring, cabinetry) (20-25%): The cost of fitting drywall, insulation, painting, interior trims, lighting, cabinet, appliances, flooring, countertop, plumbing fixtures, fireplace, and so on is part of the interior finishes stage. Interior finishes stage can cost up to $75,259, or 25.4% of the total expense.
7. Other (permits, design fees, inspection): This is a smaller portion, and the costs vary.

The final step or stage of building a house may include landscaping, driveways, and outdoor structures like a patio or deck. This stage can cost about $20,116, which is about 6.8% of the project's total cost.

It's important to note that the costs per square foot range roughly from $150 to $300 depending on location and customization. A four-bedroom house can cost anywhere between $200,000 and $1,000,000, while a typical 1500 square feet apartment costs around $150,000 to $300,000.

Several choices can be made to lower the estimated cost of building a house in the US, while some choices may increase the estimate substantially. For instance, choosing a smaller house or opting for less expensive materials can help reduce costs, but customization and location can significantly impact the final price.

[1] Data referenced by the National Association of Home Builders (NAHB) can be found at NAHB's official website.

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