Regional prices have a large effect on the cost of building a home. This has always been the case, but there are increasing issues related to supply chains and materials procurement that are causing a bigger divide than ever in 2021. The cost to build homes in the Northeast is nearly $60 higher a square foot this year than the cost to build homes in the South. Regional stratifications are related to slowdowns in materials produced during the pandemic as well as loss of workers to unemployment during 2020. Some areas of the U.S., like the Bay Area in San Francisco, can cost nearly double the amount per square foot than you would spend in a place like Nebraska or Arkansas. Urban centers will offer easy hookups to sewer and water, but you will have additional costs to bring in materials and to find the right lot to place your home on. Land costs have increased along with home materials costs, so the overall total cost of your home will be affected not just by the cost of the actual materials and labor but also the cost of the land that you are building on. This is particularly true in urban areas that are running out of space for new homes to be built.