Construction Cost Per Square Foot Home construction costs between $100 and $200 per square foot, with the average being approximately $150 per square foot. The amount you will eventually pay is determined by the property's location, the size and footprint of the house, and the quality of the finishes and items you choose. A house with more square feet generally has higher building costs. New Jersey has several different housing markets that affect its overall cost of living. Large cities such as Newark, Jersey City, and New York City have high prices for luxury homes because of their strong economies and large populations. In these cities, it can be difficult to find a house for under $300,000 unless you live in a specific neighborhood or plan to spend most of your time in central locations. In smaller towns across the state, you can find much cheaper housing, though the quality of the construction may not be as good. Finally, on the coast, home prices are high but so is the quality of life with many luxury amenities within easy reach. In terms of cost of construction, type of material used, site conditions, and the like, buildings in New Jersey range in price from $100 to $500 per square foot. However'the average price of a new home is around $150 per square foot'—so you're looking at a total cost of about $20,000 less than what the average person assumes.