How much does it cost to build a house in Maryland?

Reviewed by Adam Graham remodeling expert. Written by Fixr.com.

Maryland is a beautiful and historic state located on the coast. With upland and lowland locations, the state boasts dual climates, an excellent school system, and cultural diversity. This makes Maryland a great location to build a new home, with something to offer many people and families. Because of the state’s coastal location, most homes built in Maryland must withstand high winds and storms, impacting building decisions and costs.

The state average cost to build a new home in Maryland is $450,000 to $600,000, with most homeowners paying $500,000 for a 2,000 sq.ft. Georgian colonial built with mid-grade materials using traditional stick-building methods. This project’s low cost is $127,500 for a 1,500 sq.ft. Cape Cod built using modular building methods on a crawl-space foundation. The high cost is $800,000 for a 2,000 sq.ft. Federal colonial with a brick exterior and high-quality materials built using traditional methods.

Maryland House Price

Average Cost to Build a House in Maryland by Type

Homes in Maryland can be built using two construction types - modular and stick-built. The traditional or stick-building method is the most common in Maryland. In this method, your home is built on-site from the ground up, allowing for more flexibility and a greater range of building materials. Because many homes in Maryland are built using brick and concrete, traditional building methods are the only way to achieve many common designs.

Modular homes are less common but still an option for those building on a budget. These homes are constructed off-site and then transported to the final site for finishing. They can be built faster and for less money, but you have less flexibility in changing the design once the home is underway, and building materials are more limited. Many modular homes are built on crawl-space foundations in Maryland, and base costs do not include extras like decks, porches, or garages, so you can have some hidden costs that are not included in the average costs per square foot. That said, modular building is generally more affordable, even with these extra costs. Below are the average costs per square foot to build a home in Maryland using both building methods.

Cost per Square Foot to Build a House in Maryland

Homes in Maryland tend to be smaller than many seen elsewhere. While you can find larger homes, it is common to find homes between 1,000 and 2,000 sq.ft. It is also common to find some smaller homes, and you can build larger homes if desired. The total average cost to build is $65 to $450 per sq.ft., depending on the building method and whether the home is custom. Building costs are capped at $233 a sq.ft. for those who qualify in many parts of the state, but you can have custom building costs on private property that reach much higher. Below are the average costs to build a home in Maryland based on the size and building method.

Cost to Build a Home in Maryland by Number of Bedrooms

Homes in Maryland typically have between 2 and 3 bedrooms. However, you can build a small single-bedroom home or a larger home with 4 bedrooms. The larger the home, the more bedrooms it tends to have. However, you can build a smaller home with more smaller bedrooms or a larger home with fewer larger bedrooms, so there can be overlap in the home size and cost. In general, the more bedrooms a home has, the higher the project cost. Below are the average costs for homes with varying numbers of bedrooms in Maryland using both building methods.

Cost of Building a Home in Maryland by Number of Stories

Homes in Maryland come in many sizes and heights. However, the most common is the 2-story home, with most of the popular home styles in the state having 2 stories. You can also find ranches and small single-story cottages in the state and a few styles with 3 stories, including larger Victorians and some larger Federal colonials.

The cost to build per square foot is higher for a 1-story home than a 2-story home. A 2,000 sq.ft. ranch costs more than a 2,000 sq.ft. colonial if all materials are equal because the foundation and roof are the most expensive parts. By building up, costs can be lower than building out. For this reason, most people who want more square footage and larger homes tend to build homes with 2 or 3 stories rather than building single-story homes for a lower cost. So, while the cost per square foot to build may be lower for a 2-story home, these homes tend to be larger and more expensive. Below are the average costs to build a home in Maryland based on the number of stories.

Average Cost to Build a House in Maryland by Style

There are many popular home styles in Maryland. The state has a lot of history, so many homes tend to fall into home styles and categories that have been popular for centuries. These include colonials, with the plain Georgian, the ornate Federal, and the unique Dutch being popular across the state. You can also find many smaller Cape Cods and ranches and some mid-century craftsman-style homes. Victorian, Greek Revival, Tudor, and Mediterranean homes are not as common but are still found throughout the state. You may also see modern and tiny homes in some parts. This leads to a range of costs across the state based on the home’s type and style. For example, a plain Georgian colonial is likely less expensive than an ornate Federal, which is more likely to have a brick exterior. Smaller Capes are much less costly than large and ornate Victorians and Greek Revivals. Below are the average costs to build a home in Maryland based on its style using both building methods.

Home Building Cost Breakdown (Maryland)

No matter your Maryland home’s location, style, or size, various costs are included in the project. These include the prep work, such as clearing the lot, drawing plans, and obtaining permits, the foundation, frame, roof, system installations, such as plumbing and electrical, and the finish work for the interior and exterior. Because of where the state is located, many homes are constructed of extra material or feature brick exteriors or are built of brick or concrete with a wood exterior. These features can help the homes survive the high winds and hurricanes that come from being a coastal state. For this reason, your framing and exterior finishing costs can be higher in Maryland than in other areas, and there can be an overlap and range between these areas. A wood home with a brick exterior and a concrete home with a wood exterior can have overlapping costs with different breakdowns based on the area. Below is the average cost breakdown for building a 2,000 sq.ft. home in Maryland using traditional building processes. Their costs may break down differently because modular homes are not built the same.

Labor Cost to Build a Home in Maryland

No matter your home type, a range of professionals are included in the job. In most cases, you work with a builder or design/build firm for your new home project. Design/build firms have an architect or designer on staff, while builders may work with architects, have set plans, or allow you to bring your own plans. In either case, the firm in charge contracts with the different professionals needed to complete the job. Costs for each professional depend on your location and materials. Labor costs may be higher in the upland parts of the state, while they may be capped in populated areas. Many Maryland professionals charge slightly less than the national average, or very close to it, depending on the part of the state you are in. You may also have higher costs directly on the coast due to higher demand. Below are the average labor costs for each professional you may work with on your home.

How Much Are Building Permits in Maryland?

Building permit fees in Maryland vary by municipality. Each city or town may have its own fee schedule and method for calculating your costs. The average cost for a 2,000 sq.ft. home falls between $1,100 and $4,400, with the price dictated by the final estimated cost. The more costly your build is estimated to be, the higher the permit costs. You may have additional fees associated with the permits to review the plans and the many inspections required throughout the process. There are different regulations for building in Maryland, and you may need special permits and permissions to build for environmentally sensitive areas or historical areas, depending on your county, impacting the permit cost.

Building vs Buying a Home in Maryland

The costs of purchasing and building a new home have increased in Maryland, with the cost of building outpacing the cost of existing homes per square foot. There is a housing shortage in Maryland, but this primarily impacts low-income households rather than existing single-family homes. Costs are fairly comparable for building or buying a new home in the state. However, there are several other things to consider. If you do not currently own land, you need to purchase land to build on. Land costs are increasing in the state, which can increase your total cost. In addition, purchasing an existing home is generally a faster process, while a new home build averages around 8 months once construction begins. However, building a new home allows you to build to your needs and wishes rather than relying on existing properties.

Enhancement and Improvement Costs

Interior Designer

Working with an interior designer on your new home is very common if you are not already working with a design/build firm. Interior designers help you lay out your home to make the best use of the space. Because Maryland homes tend to be smaller, using an interior designer can help you make the most of every inch. The average cost to hire an interior designer is $50 to $450 an hour.

Additional Considerations and Costs

• Shipping container homes. Another method of building a home is to use shipping containers as the frame. This method is more sustainable and less costly, using recycled materials to build. The average shipping container home in Maryland ranges from $13K to $100K.
• Demo fees. If you have a home currently on your property that needs to be torn down, you must pay demo fees. These average $7.5K to $15K.
• Inspection. Your home is subject to many inspections throughout the process, from the foundation to final occupancy. These are triggered by the permit application process. If you need more information, speak to your local municipality.
• Contingencies. It is recommended to keep an additional 10% to 20% of your total budget for contingencies. This helps ensure your project continues on schedule if unforeseen issues arise.
• Material shortages. Continuous material and labor shortages across the country can impact your project’s cost and timing. It is recommended that you start your project sooner and try to lock in costs in a contract to mitigate this issue.
• Buy land. If you do not currently own land to build on, you need to purchase it. An acre of land in Maryland costs between $45K and $75K, and costs are on the rise.
• County regulations. Each county in Maryland has strict regulations that must be followed before building. These can impact your project’s timing and cost. Speak to your local municipality to find out which regulations may affect your project.