construction cost to build new home
Take the price of the home, deduct the price of the land, and divide that amount by the square footage of the home. For example, if the home is selling for $230,000 and the land costs $30,000, then the construction cost is around $200,000. If the home is 2,000 square feet, then the cost per square foot is $100.Use several new homes in your area to get an approximate square footage price. In general, it is a good idea to allow an additional 10% to cover unexpected costs. 2  Inflation and Market Conditions. 3  Usually the cost of building a home increases around 3% to 6% per year.