How Much Does it Cost to Build a House?

Thinking about building your own home? But let us guess, you're at the point of wanting to understand how much does it cost to build a house?

We get it! While the thought of spending a significant amount of money can be worrisome, investing in things that truly matter and are meaningful to you ensures that you won't have regrets in the end.

The great thing about The Owner Builder Club is we're to help and that means gathering all the information you need to help you figure things out.

So let's get started.

Average Cost by State

Understanding how much it costs to build a house will help you decide where to invest and where to cut back. It brings peace of mind, making the building process enjoyable rather than stressful. 

Keeping an eye on costs helps ensure your home turns out just the way you want, without overspending. But, it’s tricky as there are a lot of variations out there!

Below, we'll give you a rundown on what “average costs” to expect when building a house in each state.

We’ll give you data sourced from the Australian Bureau of Statistics (ABS) regarding the cost of new residential dwellings across a 15-year period between the 2004-05 financial year and the 2018-19 financial year. 

Over this 15-year stretch, the cost of constructing a house in Australia has surged by 59.5%, climbing from $200,802 in 2004-05 to $320,238 in 2018-19, with an average yearly increase of 3.4%.

By this growth, we can estimate how much a house would cost in 2024. Using the average yearly increase for each state, we came up with these estimates and averages below.

NOTE: These figures are not set in stone and will likely vary. All averages from 2020 to 2024 are from the annual price changes in the 15-year study. Other factors may affect the cost.

On average, building a house can vary widely, but you're generally looking at somewhere around $392,030 between 229m² and 245m² floor area.

Factors That Affect the Overall Cost

Now, let's break it down in a simple and friendly way, so you can understand the ins and outs without feeling swamped. Below, we'll walk you through the factors that play a big role in determining the cost.

Location

Just like in real estate, location is everything when it comes to building a house. Building in urban areas or cities like Sydney or Melbourne can significantly increase costs due to higher land prices and labour rates. On the flip side, rural areas might have cheaper land but could incur higher transportation and material costs.

Size and Design

Naturally, the larger your dream home, the more materials and labour it will require, thus raising the overall cost. Additionally, a complex design with custom finishes and features can further bump up the price tag compared to a simple, more traditional layout.

Materials Used

The type of materials you select for construction plays a crucial role in determining the final cost. High-end materials like stone or hardwood flooring are more expensive than more common materials such as vinyl or laminate. Also, the choice between prefabricated and custom-made materials can affect the price significantly.

Labour Costs

Labour costs vary widely across Australia, with more skilled labour demanding higher wages. The complexity of your build can also impact how much you'll need to pay your workforce; more intricate designs require specialised skills, which come at a premium.

But as an owner-builder, you can save on labour costs. Not that you don’t need help, but you won’t rely on someone all the time to oversee the work.

Permits and Regulations

Before construction begins, you'll need to obtain various permits, which can vary not just by state but even by local council areas. Compliance with building codes and regulations can also add to the cost, especially if you're aiming for sustainability certifications or need to make adjustments based on zoning laws.

Time of Year

Believe it or not, the time of year you choose to build can affect costs. Some periods are busier for builders and contractors, potentially driving up prices due to demand. Weather conditions can also play a part, as certain times of the year are more conducive to building activities than others.

Understanding these factors can give you a clearer picture of what goes into the cost of building a house in Australia. By making informed decisions in each of these areas, you can better manage your budget and work towards creating your dream home without unnecessary financial strain.

Budgeting Tips

Speaking of financial strain, here's how to keep your wallet happy while you're at it!

Budget Planning Made Easy

First things first, know what you can spend. It's like planning a road trip – you need to know how much gas you've got in the tank. 

Start with the big stuff (like buying land and building costs) and don't forget the little things (like door knobs and light fixtures). Add it all up and there's your budget!

Smart to Have Extra Money Saved

Ever go on a shopping trip and find something amazing you didn't expect? Building a house can be like that. Sometimes, you'll find you want to add something extra or, oops, something costs more than you thought. Having a little extra cash tucked away means you can handle surprises without breaking into a sweat.

Find the Perfect Builder or Carpenter

Finding the perfect builder or Carpenter is key to making your dream home a reality. Think of it as picking a partner for a big project – you need someone who gets your vision and sticks to your budget. The right builder smooths out the process and can even save you money by avoiding mistakes. 

Owner Builder be prepared – not all builders like owner builders!! We know, we know – whyyyy?? Well, from what we know, builders have very low confidence in the ability of an owner builder.

But what builders don't know is that The Owner Builder Club adequately educates owner builders to think, act and speak like a builder. So, say what you will after that statement 😅

In all seriousness, whether you go with a professional builder or take the reins yourself, each choice moves you closer to living in your dream home and that's what matters most.

Cost Calculator

Who doesn't love instant gratification when it comes to wanting to know things and wanting to know things NOW? Well, that's exactly why we've included this link to a Construction Cost Calculator because we get it! We know you'll what to do more research on how much it costs to build a house so we hope it helps!

Conclusion

Building a house is definitely a big investment, but it's also a chance to create a space that reflects who you are. Every choice you make, from the location to the colour of the kitchen tiles, adds a chapter to your story. And yes, while keeping an eye on the budget is important, the real value comes from crafting a home where memories will be made for years to come.

So, to all future homeowners out there, we hope we've helped answer the question – how much does it cost to build a house so embrace the process with an open heart and a clear vision.

The path may have its twists and turns, but the destination—a home that tells your story—is well worth the journey.

Frequently Asked Questions ( FAQ)

How long does it take to build a house?

Typically, building a house can take anywhere from 6 months to 2 years, depending on various factors like the size of the house, the design's complexity, and how quickly decisions are made. Weather conditions and permit processes in your area can also play a big part in how long the construction takes.

Can I save money by doing some things myself?

Yes, you can! Many future homeowners save money by taking on some tasks themselves, such as painting, installing fixtures, or even landscaping. It's called ‘sweat equity' – when you contribute labour instead of cash. Just be sure to assess your skills honestly and consider the time commitment. Some jobs are best left to the professionals to ensure safety and quality.

Is building a house more expensive than buying one?

It can be, but not always. Building a house gives you the freedom to choose everything to fit your budget, from materials to the floor plan. While the initial costs might be higher, you end up with a home tailored to your preferences, which could save money on renovations and adjustments down the line.

Can I make changes to the design or materials during construction?

Yes, but be mindful that changes can affect both the cost and timeline of your project. It's best to finalise as much as possible before construction begins to avoid delays and additional expenses. However, a good builder will be able to accommodate changes within reason and will keep you informed of any implications these changes may have.