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

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

Located in the south-central region, Texas is one of the fastest-growing states in the U.S. Texas is recognized for its family-friendly neighborhoods, temperate weather, and a promising job market. The state has abundant land and lenient regulations for building properties, making house building a pretty straightforward process. Aside from land, those who want to build a house in Texas should get familiar with the state requirements, state legislation, and local specifics required throughout the process.

The national average cost to build a home in Texas is $250,000 to $400,000. Most people pay around $325,000 to build a 2-story, 2,500 sq.ft. stick-built farmhouse. At the low end of the spectrum, an 800 sq.ft. modular ranch home in a rural area costs $64,000. At the high end, you can pay up to $1,000,000 to build a custom-made 5,000 sq.ft. coastal contemporary home with luxury features.

Texas House Price

Average Cost to Build a House in Texas by Type

The type of house you want to build is the biggest cost factor. The cost per sq ft to build a house in Texas varies between $80 and $150 per sq.ft. for modular homes and $100 to $200 per sq.ft. for stick-built homes. Adding custom and luxury features increases this cost. The two most common house types in the state are modular and stick building. The main difference between the two is in the way they are built. Modular homes consist of bigger parts assembled off-site, making them more affordable and requiring less time to build. However, customization options are limited compared to stick-built homes that you can customize to your unique needs. The cost to build a house per square foot in Texas is higher for stick-built homes because all parts need to be brought to the construction area.

The materials, duration, and quality are the same for both types, although stick-built homes can be customized. While the average building cost per square foot in Texas is higher for stick-built homes, when you consider the shipping for modular homes, the price is more or less the same. This is still affected by the quality of materials you choose. The cost to build a house in Texas per square foot for each type is shown in the table below.

Cost per Square Foot to Build a House in Texas

The price per square foot to build a house in Texas ranges between $80 and $200 per sq.ft. depending on the type of home you are building. Size is one of the most important price factors. The bigger the home is, the more materials and time will be needed to build it. The average house is 2,500 sq.ft. in Texas. This size is large enough to fit three bedrooms, which is the standard bedroom count in Texas. Below is a table based on the most common size for both methods in Texas.

Price to Build a House in Texas by Number of Bedrooms

The number of bedrooms also affects the price. Costs range between $52,000 and $495,000 for a modular home and $65,000 to $660,000 for a stick-built home, depending on the number of bedrooms. The more bedrooms a home has, the bigger the size of the house, so more materials and labor will be required to construct it. While the average home in Texas has three bedrooms, homeowners can build a home with any number of bedrooms they want or need. Considering the house size will be bigger to accommodate more bedrooms, the table below shows the average cost to build a house in Texas based on the number of bedrooms.

Cost to Build a Home in Texas by Number of Stories

The average price to build a home in Texas based on the number of stories is $200,000 to $375,000 for modular homes and $250,000 to $500,000 for stick-built homes. Most homes in Texas are three-story constructions. However, this size may vary based on the exact location. While the amount of materials spent for each story may be the same, the construction complexity increases the higher you go. This calls for more experience and advanced machinery. The Texas mansion cost increases with each story you add. Below is a table with the cost of building a 2,500 sq.ft. home when the house has one, two, or three stories.

Average Price to Build a House in Texas by Style

With many styles to choose from, building a custom home in Texas varies between $20,000 and $475,000 for a modular and $32,000 to $750,000 for a stick-built home. Each home style has a different shape and size and requires different building materials, so their cost varies. This means that the cost of Texas farmhouse homes will be different from the cost of building a guest house in Texas due to the difference in materials and elements. The following table presents the most common house styles and the price to build each of them in Texas.

Home Building Cost Breakdown (Texas)

Many component categories contribute to the cost of building a new home in Texas, each costing $10,000 to $100,000 of the total. While the average home building cost per square foot in Texas gives you a general idea of how much a house will cost, breaking down the cost lets you know what to expect for each component of the process. The materials, layout, location, and home style impact the permit cost, how much prep work is needed, and the construction process, so the final costs vary.

Aside from the type, style, size, and materials, the cost per square foot to build a house in Texas depends on several additional factors. One of these factors is the location of the house. Some cities have more affordable building costs, while others will be more expensive than the average price level. Similarly, coastal areas are also more expensive than inland spots because specific building codes and regulations apply. Finally, the different customization features add to the total cost. The more customized a home is, the more it will cost. Below is a table showing how much each category contributes to the average cost of building a home.

Labor Cost to Build a Home in Texas

The average cost to build a custom home in Texas is $325,000 for a 2,500 sq.ft. stick-built home. From this, about $50 to $80 per sq.ft., or $125,000 to $200,000 of the total, is the labor cost. The rest is the cost of materials. Various costs are associated with house building. The services can be partially or fully provided by one or multiple contractors. Below is a table with the most common professionals you will need throughout the construction process and the cost to hire each of them in Texas.

Average Cost to Build a Home in Texas by Location

New home construction in Texas costs $250,000 to $750,000. However, the cost varies drastically based on the location. Texas is the second-largest state in the U.S. by surface, so there is a big difference in the prices from one side of the state to the other. The table below shows the average cost of building an average-sized home in the five most populated cities in Texas.

Cost to Frame a House in Texas

The cost to frame a house in Texas ranges between $7 and $20 per sq.ft. The exact cost mainly depends on the material and the structure of the home. The most common framing materials used in Texas are timber and insulated concrete forms (ICF). Timber is the traditional framing material in Texas that gives homes a rustic look. It is mostly used to build farmhouses and ranch homes. For coastal areas and regions prone to hurricanes and thunderstorms, ICF blocks are the preferred choice due to their sturdiness and durability.

How Much Are Building Permits in Texas?

The overall cost of the building permits for a 2,500 sq.ft. house in Texas range between $400 and $1,800. Every city has a different method of calculating the permit cost. Some are based on the size of the house. Some calculate it per square foot. Others have a fixed permit cost. Depending on the area, the building permit price in Texas ranges from $0.08 per sq.ft. to $0.40 per sq.ft., which translates to $200 to $1,000 for a 2,500 sq.ft. house. Most Texas areas also require a separate permit for the electrical, mechanical, plumbing, and sewer systems, costing between $50 and $200 each.

To apply for a building permit in Texas, you need to submit the construction drawings and building plans containing the legal description of your property and other information about the structure and contractor performing the construction. In most cases, the best time to apply for a permit is after receiving the initial blueprints for the home. The online information of Texas home builders with prices may include the building permit cost. However, many require a personalized quote based on your requirements. The best way to calculate the building permit cost in Texas is to visit the local government agency and ask about the building permit cost calculation and the process to obtain one.

Building vs Buying a Home in Texas

Both building and buying a home in Texas come with advantages and drawbacks. In general, it is cheaper and more convenient to buy an existing home in Texas than to build one. Many properties are for sale in Texas. Finding the right style, size, and design of the home is not complicated. When you buy a home, you need to hire a real estate agent that will help you through the process. An inspection and appraisal may be needed to ensure the state of the house and its value are realistically represented.

When you build a home in Texas, the price is mostly influenced by the location and type of house, whether you want a modular or stick-built house. Before building a house in Texas, you need land. Most homes sit on a half-acre lot. This will be enough land to accommodate the average-sized house. It is better to get finished lots than raw land in Texas because they have access to utility hookups. Raw land requires extra steps before building. A building permit should be obtained prior to starting the construction. Once you get the permit, construction can start. Make sure to budget for construction costs correctly. The price of materials and labor has gone up due to shortages and delivery channel disruptions. Construction usually takes three to six months in Texas. However, there may be delays due to weather conditions.

Enhancement and Improvement Costs

Interior Designer

The cost to hire an interior designer is $50 to $450 per hour, based on the designer’s professional experience. When building a house, you can hire an interior designer to help you with the finishing parts of the project. Interior designers provide various services, namely designing, planning, and decorating the interior of a property. They create the design scheme of the entire home and coordinate with contractors to ensure the space is used most efficiently and the living area looks appealing.

Additional Considerations and Costs

• Shipping container homes. Shipping container homes are becoming more popular because they save on construction costs since there is no need for exterior materials. You can find basic, prefabricated 20 ft. container homes for $12,000. Bigger, 40 ft. container homes with luxury features cost up to $50,000. If you are handy and want to turn it into a DIY project, the container itself costs $1,500 to $7,000 in Texas, depending on its size.
• Demo fees. If there is a house on the land where you want to build a new home, you first have to remove it. The demolition cost ranges between $7,500 and $15,000. You will need an additional demolition permit that costs between $100 and $450.
• Inspection. Every state has specific inspection regulations. Make sure to check the local building code. Once you complete your home, it must pass inspection, which is part of the permit process and typically costs $350 to $600 per visit.
• Contingencies. House construction, especially stick-built, is influenced by weather conditions. Texas has high heat peaks with fire and drought risks and occasional storms and floods. This may slow down the construction fund, so it is good to have around a 5% contingency fund to offset the time lost by weather delays.
• Material shortages. Many building materials have seen supply issues caused by supply chain disruptions due to the pandemic and war. This drives the material cost up and makes it challenging for construction companies to get lumber, concrete, glass, iron, and other materials. Because of the price fluctuations and shortages, it is best to sign a contract early in the process.
• Buy land. As a large state, there is plenty of available land for purchase in Texas. The price depends on the location and land structure, but prices are still more affordable than in other states. The surface and mineral estate have different ownerships. If a gas or oil company has bought the mineral estate rights, it can extract the minerals beneath the land without permission. If you are considering buying land in Texas, make sure to do a mineral title search to check the ownership structure and find out your rights as a surface estate owner.