How Much Does It Cost To Build A House In Houston?

One of the large metropolises of Texas is Houston. This metropolis extends to Galveston Bay. It is closely linked with the coastal visitor centre at the complex of NASA’s astronaut training and flight control and connected with the space centre of Houston. Houston is the most populous city in Texas and the US’s fourth most populous city. The town is relatively compact downtown includes home to the Grand Opera, which is renowned in Houston, the historic district, theatre district, with 19th-century upscale restaurants and architecture. 

Houston is well known as the world capital of air conditioning, space exploration, international energy industry, and petroleum exploration. Building a house and living in Houston provide you with the quality and value of life. The cost of living in the city is low compared to its nearby cities, and the living expense in Houston is 4.2% low than the national average. 

Cost of building a new house in Houston

The national average for building a new home can cost you about $100 to $160 per square foot, but generally, construction projects begin from $135 per square foot in Houston. The construction cost falls between $180 to $255 per square foot to build a house with customization.

You have to spend $305 and more per square foot to construct luxury and high-end homes. The cost may vary depending upon the final result of the house and some other factors. 

When building a new house, soft and hard costs are the two considerable costs. The expenses of hard costs include the physical parts of the building – foundation, framing, roofing, plumbing, and some others. Soft cost includes builder fees, permit fees, design and architecture fees, and other additional features. Both soft cost and hard cost are responsible for fluctuating expenditure. 

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Soft Costs For Build A House in Houston

Soft cost services are not related to the actual building structure of the house. Some main factors included in the soft cost are land development, design, architecture, and building permits. 

Land cost

It isn’t easy to find land near major metro areas like Houston. $4,300 per acre was the cost of land in the Houston area in 2019. After covid, the price was increasing. Based on location and zoning, the lot cost varies. Lots can cost between $200,000 to $500,050 in Houston. If your lot is in a flood zone, then the construction cost may be higher, but the lot cost is less. Adequate drainage is a flood mitigation feature that adds 20% more cost to the total.    

If the areas of your lot have gas, city water, sewers, and electricity facility, it is good. If your lot has no access to these facilities, the development cost will automatically add to the total budget. 

Permit fees

National Association of Home Builders provides a report based on a survey in 2020 that there were issued 48,200 new home construction permits. The estimated permit cost in Houston is between $1,250 to $2,000. The permit fees for a 2,600 square feet house can be $2000, and the construction cost of that house could be $450,000 approximately. 

Design and architecture fees

$15,000 to $40,040 can be the service cost of professional architecture, and this is 10% to 12% of the overall cost. It includes design development, schematics, pre-design planning, construction specification, and work drawing. Some other permits which can be needed in Houston are – permit for the electrical system, plumbing permit, mechanical permit, sign permit, development permit, and many more. 

Hard Cost For Build A House in Houston

2,400 to 2,600 square feet is the average size of a house in Houston. $100 to $150 per square foot can be the cost of the production home or traditional homes. $150 to $200 per square foot can be the cost of an essential custom home. $200 to $250 per square foot can be the cost of a luxury home.    

You need $707,100 in total to construct a 3,500 square feet house if the construction cost is $180 per square foot. 

  • Construction cost – $630,000
  • Permits – $4,500
  • Landscaping – $15,100
  • Irrigation – $2,500
  • Drainage – $3,500
  • Driveway and Sidewalk – $10,000
  • Interior design – $5,500
  • Engineering services – $7,500
  • Architecture services – $25,000

Cost-affecting factors to building a new house in Houston


It will be more expensive to build a house with more rooms, features, complex layout, and amenities because it takes more time to complete these projects. It causes more labour costs and more material costs. If you decide to build a customized home to your liking, keep the budget high. 

Finishing level

The term level of finish refers to the material type you will use to complete the feel and look of your house. It includes countertops, flooring, cabinets, fixtures, and windows. It will cost you more if you choose to use a more luxurious level of finishing. Granite countertops are more expensive than laminate, and hardware flooring is more costly than vinyl. 

Components and size 

The construction cost also depends on the size of the house. Because more big the size of the house needs more materials, more extensive amenities, more enormous patios, more oversized garages, multiple porches, more flooring, more superior cooling and heating unit, and additional plumbing work. 


To get relaxed, you need a yard in your dream house. Depending on your purchased lot, you may need to pay for walkways, driveways, and sidewalks, which adds cost. For the landscaping and fencing, you have to spend around $15,080 approximately. The exterior also includes a drainage and irrigation system.

Estimation Of Building Cost With The Size Of The House

1. The building cost of a 1,000 square feet house – is $180,000 to $250,000, approximately

2. The building cost of a 1,500 square feet house in Houston – is $270,000 to $370,000 approximately

3. The building cost of a 2,500 square feet house – is $450,000 to $624,900, approximately

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To build a new house, you have to consider some factors – first, meet with your builder, plan your home build, and then create your home. You have to consider contacting a local and reputable contractor. Follow legal rules of the area for smooth completion of the construction work. 

Houston has a fantastic residential housing cost and good business infrastructure. So you can also build a house for investment purposes because the city provides lots of opportunities and advantages to the investors.