How Much Does It Cost to Build a Custom Home in South Texas?

Custom Home South Texas

Buying a home or building a custom home is a hallmark of the American dream. Everyone wants to live in a home that they own. The latest data from the National Association of Realtors shows that the average price of buying an existing single-family home is $271,300. In contrast, the average cost of building a custom home is almost double that of $427,893.

While buying a home seems easier on the pocket, building your own custom home gives you the freedom to personalize every inch of the house to your liking. So if you’re willing to dig deeper into your pocket to build the ideal home, why not go down to South Texas to build one?

Why South Texas?

South Texas is one of the most frequented places owing to its attractive tourist destinations and recreational opportunities. It is also famous for its strong Hispanic cultural influences, especially in architecture. Comparatively, building a custom home in South Texas is also quite affordable compared to other areas of the country.

Many people moving into South Texas from other states like California sell their homes and buy larger homes or build new and better ones for just a little more than half the price. This makes it an ideal location among others when it comes to building a custom home. So how much does it cost to build a home in South Texas? To answer this, there are several factors and hidden costs that you need to consider.

Factors To Consider While Making Cost Estimates For Building A House

  • The location of your home
  • The cost of labor in your area
  • Pricing differences among the different regions
  • Home type and size
  • The different building materials and products you choose to use
  • Use of modern or custom designs
  • Other miscellaneous costs
  • Price hikes due to the pandemic

With these in mind, let’s follow the steps while building a custom home to get a better idea.

STEP 1. Obtaining A Plot Of Land

Building a house requires a plot of land. If you already don’t own one, then you’ll need to look for one to purchase. Most average single-family homes are built on a half-acre lot, so that would be an ideal comparison base while looking for a new one. There are mainly two types of land in Texas: subdivided lots and raw land. Depending on the city and the size of the plot, the costs of each type of land may vary.

Subdivided lots are fully finished lots in cities that feature roads and various utilities most of the time. The actual land, however, is platted. Subdivided lots can range from $30,000 to over $300,000 for 1-acre depending on the area, community, or city. Subdivided land costs are more when you factor in other features and utilities, surveyor costs, septic tank installation costs, grading, roads, etc.

Raw lands are undivided plots of land. These types of land are cheaper by the acre, but they are costlier to develop when you factor in utilities, grading, and roads. Such types of land can range from $7,000 per acre to over $50,000 per acre for larger tracts. This may seem like a cut-price compared to subdivided lots, but the cost of developing these raw plots brings their actual cost up to par with subdivided lots.

STEP 2. Obtaining Building Permits

Building permits are essential before you can start building a home. The cost of obtaining a building permit ranges between $400 and $4,000, depending on the location of your land. Usually, getting permits in rural areas is cheaper, and costs can vary widely depending on local regulations.

STEP 3. Creating A Construction Budget

Single-family homes on the mid-levels usually take up around 2500 to 3000 square feet of space. San Antonio, the fastest-growing city in South Texas, has an average of $160 per square foot. Other cities are comparatively cheaper, around $100 to $140. This gives you an estimate of the total cost of building a house, which can vary from $260,000 to $400,000.

All these costs, however, vary according to different factors. For example, while the house structure and exterior finishing make up the bulk of the total budget, you should allocate around 25% of the total budget towards interior finishing. Given below are some of the different expenses that factor into the total amount.

  • Foundation work

Foundation work involves breaking ground on your new home, and it will usually cost you anywhere from $4,500 to $21,000 when pouring a concrete foundation.

  • Finishes and fixtures

There are many options when you consider finishes and fixtures. While some basic packages may start at $90/square feet, luxury packages can hit up to $1100/square feet.

  • Type of roof

Installing new roofs can cost up to $7,300. However, the prices increase if you go for options such as slate roofing.

  • Appliances

Appliances like smart home features can cost you from $50 to thousands of dollars, depending on the quality. Moreover, you’ll also need to factor in the electrical wiring and water plumbing costs as part of your budget estimates.

With all these different estimates and expenses in mind, now you have a better idea of how to plan your budget for your custom home construction. While the cost of building your own custom home may seem hefty compared to buying a new house, it is suddenly worth every penny you spend. In addition, there may be parts of the new house that you may be tempted to change for a few thousand dollars or more. Factoring this in mind, building your own custom home may be the ideal decision while opting for a new place to stay.