Generally, steel-frame homes are more expensive to construct than wood-frame homes. However, when exploring the cost of a steel-frame home versus a wood-frame home, you can break it down into short- and long-term considerations:
Short term: Steel-frame homes cost about $9.50 to $11 per square foot, as opposed to wood-frame homes, which average $1 to $5 per square foot. Although the cost of wood fluctuates and the type of wood determines the final price, wood construction is typically cheaper. Wood-frame homes are also easier to modify, and far more contractors are familiar with working with the material.
Long term: Steel-frame homes have several long-term benefits that wood-frame homes do not. Steel-frame homes typically have lower insurance fees, as they are less prone to structural damage from weather, rot, insect infestations and fire damage. However, keep in mind that steel-frame homes are more difficult to insulate and may suffer from rust.