Building a Home in Texas

In 2023, many potential homebuyers in Texas are turning their attention towards new construction properties rather than existing homes. Fort Worth-based real estate agent, Lily Moore, points out that building a house in Texas is remarkably affordable compared to other states. With no state income tax and low property taxes, the appeal of new construction homes is on the rise. Additionally, some Texas builders are offering enticing incentives like low interest rates and reduced closing costs, making it an even more financially appealing option for buyers.

Average Costs for New Construction Homes in Texas

For an entry-level new construction home in Texas, buyers can expect to spend around $325,000 for a 1,600 or 1,700 square-foot house. This figure is for homes purchased from builders, commonly known as spec homes or tract homes. Comparatively, existing homes of similar size in the current market are priced around $295,000 to $300,000, most of which were built in the 1980s and 90s. These existing homes may require additional expenses for upgrades or repairs, which can be avoided when building a new home.

Custom-built homes offer more space, starting at around $700,000, but typically range from 2,600 to 5,000 square feet. Buyers also benefit from larger plots of land, often half an acre to a full acre.

Breaking Down the Average Costs

Here is a breakdown of the average costs to build a house in Texas in 2023:

1. Foundation: $9,046
2. Framing: $14,000 – $32,000
3. Roof: $4,400 – $16,000
4. Siding: $10,750
5. Appliances: $10,875
6. HVAC System: $7,000
7. Plumbing System: $4,080
8. Electrical System: $1,437
9. Building Permits: $1,412
10. Finishes and Fixtures: $42,000 – $175,000

Purchasing a Plot of Land

The cost of purchasing land in Texas can vary widely based on location, demand, and lot size. An expert buyer’s agent can help navigate this process. It’s important to consider land improvements, soil type, and local zoning laws.

Additional Costs for Custom Homes

Building a custom home may come with additional expenses:

1. Hiring an Architect: $35,000 – $140,000
2. Land Survey: $375 – $745
3. Excavation and Grading: $1,400 – $5,800

Affordable Building Options

For those seeking more cost-effective options, tiny homes (ranging from $30,000 to $60,000) and modular or prefabricated homes (averaging around $117,000) offer viable alternatives.

Advantages of Building in Texas

Moore emphasizes that building a new home in Texas is a wise investment. New homes tend to be more energy-efficient, appreciate in value over time, and are currently more affordable than resale homes. With numerous spec homes available, buyers can move in within two to three months of signing a contract. Custom-built homes, on the other hand, may take up to ten months through a builder and up to 24 months if starting from scratch.

Conclusion

Building a home in Texas offers a compelling value proposition in 2023. With the guidance of an experienced agent, buyers can navigate the process efficiently and make an informed decision. Considering the significant savings, quick turnaround time, and the satisfaction of being the first occupant, opting for new construction in Texas is a compelling choice for prospective homeowners.