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In one form or another, this question is one of the most frequent requests we receive from our readers. Unfortunately, it is also one of the few questions that we simply cannot answer very specifically.
"Can you tell me how much it costs to take a vacation or send my kids to college? How much should I expect to spend on a new kitchen? What is the "average cost" of a dinner for two or a night out with friends?".
All of the above questions contain so many variables that it is impossible for anyone to answer them accurately without first asking several additional questions and gathering much more information. The same is true when calculating the cost to build a new house. Let's begin by considering what square foot construction costs really are, nothing more than the total cost of a given project divided by the total number of square feet in that project.
So, a 2,000 square foot house with total construction costs of $250,000 would cost $125 per square foot to build. Spend another $20,000 on a gourmet kitchen, an elegant master bath, marble tiles in the lounge, a fancy curved staircase or any other combination of "above average" features or finishes and that same 2,000 square foot house would now cost $135 per square foot to build; an increase of 8%. Now consider the structure itself, if the house in question is a single story, with all of the finished area on one floor, the roof would have to be large enough to cover the entire 2,000 feet of living space. Turn that single level into a two story and the roof size is instantly reduced by 50% because the second floor system became the roof for half of the area on the first floor.
Increase the roof pitch from 3/12 to 12/12 and the roof area (including framing and sheathing) quickly increases by 35%. Of course, these examples are oversimplified because they don't consider any other differences like the need to add the cost of staircase and take away the space they occupy, or in the case of a slab-on-grade foundation, the difference between the costs of a concrete slab verses a wooden floor system, but hopefully the point has been made.
The costs of similarly sized houses can also vary considerably due to the shape of the building, the number of corners or offsets in the design, the type of foundation and required local footing depth, the pitch of the roof, and many other design characteristics that are not directly related to the size of the house.

Next we have all of the building authority regulations to consider, weather conditions and unpredictable human factors can cost from a few hundred dollars to more than several thousand per single family home. Labour and material costs can vary substantially based on complexity or uniqueness of the project, good or bad economic times, site conditions, the unemployment rate, local building codes, availability of supplies and workers, public utilities and several other factors, to make matters worse there really isn't any uniform method of measuring square footage or defining what is included in those figures.
The building contractor may use exterior dimensions or interior dimensions. What about decks or covered porches? What about septic systems, driveways, sidewalks, landscaping etc. Unfortunately, the only way to be sure that your construction budget is reasonable is to identify and price every item that will be used to build your home individual. Of course, in order to do that, you will need to have plans and specifications and you will need to develop a complete and thorough estimate for your individual project.

The obvious problem here is that not many people want to buy several different house plans and then spend weeks or months pricing them in order to determine which one they can afford to build. So, a more realistic approach to determine how much your new home will cost might be to simply work backwards. Start by determining how much you can afford to spend, and then be realistic about the size of the house you need and finally decide what you can afford to build. Building contractors might be able to quote "average" construction costs, however before you put too much faith in "average" figures, keep in mind that the only house that you really care about is the one that you are about to build.

Residential house prices ranges from: $80, $90, $105, $125, $150, $175, $200, and $225 per square foot combine to produce an average of $143 per square foot, which is probably a reasonable figure for many areas of the country, yet the difference between the lowest figure and the highest is very substantial. So, regardless of how you finally come up with the numbers, be sure to take the time to review your finances, prepare a reasonable budget to arrive at an accurate construction estimate for the specific home that you are about to build.

Meet with building contractors that have constructed houses that are similar in size, quality of finishes and feature to the home you want. Builders will tell you how much per square foot they usually charge for construction, they can also give you a ballpark idea of what your house might cost, however it is important to know exactly what is included in the price. If you ask, most building contractors will provide you with a list showing the materials and price of each item they will use during construction.
The most expensive areas in a house are usually the kitchen and bathrooms, the number of windows, the size and quality of fixtures and fittings can also affect the cost. The cost per square foot is often higher for a small house than that of a larger home. When building a larger home, the cost of expensive items (such as the bathroom or kitchen) is spread over more square footage, consequently, a larger house may have a lower square footage cost than a smaller home, also, it usually costs less to build a two-story house when compared to a single story home with the same square footage. This is because a two-story house will have a lower roof and foundation cost. Plumbing and ventilation are more compact in two-story houses, small details in the design of your home can make a difference in the price.

To save on costs, begin by estimating construction expenses before you select your final design plans. When building a home it's best to work with even numbers, have your house size rounded up or down to increments of two feet. This reduces waste materials; also it's the most economical way to build a house which is no deeper than 32 feet. If the depth exceeds 32 feet then your roof trusses may need to be specially made and some times can be more expensive, houses that have rectangular or box shapes cost less to build, those with more angles and corners in the shape of your home can increase the amount of labour and materials needed in construction.

Site preparation can have an impact on the cost of a house, building on a flat plot of land will usually cost less than on a slope, if you have to excavate and dispose of lots of dirt, or blast through large rocks, then site preparations can become more expensive. Cost overruns usually occur when the finished cost of the house is more then the original agreed price, overspending the allowances, making changes and encountering unforeseen problems. Proper planning can greatly reduce cost overruns; in general it is a good idea to allow an additional 10% in your budget to cover unexpected costs.