The process of buying a home can get expensive. The average cost of a pre-owned home in the U.S. is currently around $300,000 for a single-family home. This is more than the average cost of $248,000 to build a new home. But either way, that’s a lot of money and not everybody can afford it.
The cost to build a new home is affected by many variables, including its location, how big it is, any extras you add in, and the materials it’s built from. Fortunately, there are some options available to reduce the cost when building your next home. To save money on your next home build, keep the following information in mind.
The Tiny Home Craze
One recent trend in home-building is the popularity of tiny homes. The typical price of a tiny home ranges from $30,000 to $60,000. Tiny homes are between 100 and 400 square feet, but you must also find or rent the land on which you want it to sit on. Keep in mind that living in a tiny home is not for everyone, because there is so little space to live in.
But in addition to a huge costs savings when buying a tiny home compared to a traditional home, the benefits of living in a tiny home include less clutter, less time spent cleaning, and a lower carbon footprint.
Cheapest House by Materials Used
In addition to home size, the materials you use for building your house can play a part in its overall cost. Also, the climate where you live influences the types of materials you can use, with warmer areas of the country better suited for lighter and cheaper materials.
Here are some commonly used house-building materials that are cheaper:
Prefabricated Panels: Using prefabricated panels is a great way to cut the costs of building your home. Not only do the panels save on material costs, but they are easier to put together, meaning labor costs will be lower as well. The advances in prefabricated panels means you can have a nice-looking home for 10 to 20% less than a typical standard home.
Concrete Sheets: The cost of building a concrete home is about the same as building a standard home made out of wood and siding. The savings kick in when it comes to cost savings on your utility bill. Homes made out of concrete can provide an annual 20 to 25% savings on your heating and cooling costs. In addition, a concrete home’s improved resistance to fire and natural disasters means you pay less for your homeowner’s insurance policy.
Corrugated Metal: Building a home using a material like corrugated metal, at least on the outside, is a great way to save money when you build a home. On average, a metal home using corrugated metal costs about 20 to 50% less than a home using more standard materials. The price depends, in part, on the cost of the metal home kit, labor, and other fees.
Also remember that the region you live factors into how much it will cost you to build a house. The most expensive area to build in is the Northeast U.S., while the Southern U.S. is significantly cheaper to build in. Rural areas can also offer lower house prices compared to living in the city. However, in certain rural areas, some utilities can be more expensive, including sewer, water, heat, and electricity.
Your budget also plays a big role in the type of house you build, with bigger houses with more upgrades costing more than a smaller home.