What Does It Really Cost to Build a New Home in 2025?
Thinking about building your dream home? You’re not alone, and one of the first questions that comes up is always:
“How much does it really cost to build a custom home these days?”
It’s a big question, and the answer depends on many factors. Fortunately, the National Association of Home Builders (NAHB) recently released its 2024 Cost of Constructing a Home study (published January 2025), giving us a fresh, nationwide look at what goes into the cost of a new single-family home. We believe sharing this kind of data is important; it helps future homeowners feel informed, not surprised!
So, What’s the Average Cost to Build?
According to the NAHB, the average cost to build a single-family home in 2024 was $665,298. That figure includes the land, materials, labor, permits, builder overhead.
While that number might seem high at first glance, it’s meant to provide a big-picture view of what a mid-level custom home might cost in today’s market. It’s not meant to discourage, it’s meant to prepare you with clarity and confidence as you consider your own options.
Where Does That Money Go?
Every home is different, but the study breaks the total cost into key categories:
Land acquisition, site work, framing, exterior finishes, interior finishes, systems (like plumbing and HVAC), permits, overhead, and more.
We recommend looking at these numbers not just as line items, but as the building blocks of quality. Each component plays a role in creating a safe, efficient, and beautiful place to call home.
What This Means for You
We understand that a number like $665K can feel like a curveball, especially if you're early in the planning phase. But it’s important to remember that this is an average, not a baseline or a requirement.
You don’t need a mansion to build a meaningful space.
What matters most is aligning your vision, your needs, and your budget, and that’s where a good builder comes in.
At Matthew 6 Construction, we take the time to explain how every choice, from layout to finishes, impacts your total cost. Our goal isn’t just to build homes; it’s to build trust, clarity, and excitement as your project takes shape.
Why Custom Home Costs Vary So Much
The study also confirms something we talk about often:
Price per square foot isn’t always helpful, especially for fully custom homes.
Why? Because two homes with the same square footage can vary dramatically in price depending on:
Design complexity
Material and finish quality
Lot conditions (grading, utilities, etc.)
Regional labor and permitting costs
Level of customization
A smaller home with high-end cabinetry, hardwood floors, and custom windows might cost more than a larger home with simpler finishes. Custom doesn’t mean “extravagant”, it just means personalized, and that comes with unique variables.
What’s Driving Today’s Prices?
Here’s what’s currently influencing the cost of construction:
Rising prices of materials like lumber, concrete, and roofing
Labor shortages and increased wages in the trades
Ongoing inflation and supply chain disruptions
Tighter permit requirements and municipal fees
These are realities of today’s market, not deterrents. They’re simply reasons why working with a transparent, experienced builder matters more than ever.
Final Thoughts: Knowledge is Empowerment
If building a home is something you're thinking about, or even just daydreaming about, this kind of information is a great place to start. It helps you plan more realistically, set the right expectations, and begin meaningful conversations with your builder.
We're not here to pressure or upsell you. We’re here to educate, support, and walk with you through every phase of the journey. Whether you’re ready to break ground or just starting to explore, we’d love to hear your story and see how we can help.
Let’s talk about what’s possible, on your terms, in your time.
🔗 Read the full study here:
Cost of Constructing a Home 2024 – NAHB Special Study (January 2025)
