Building Your Own Home in Arkansas

If you’re considering building your dream home in Arkansas, it’s essential to understand the costs involved. Constructing a house is not only a significant financial investment but also a time-consuming endeavor. In this guide, we’ll walk you through the average costs, key considerations, and financing options for building a home in the Natural State.

Average Cost to Build a House in Arkansas

The average cost per square foot to build a house in Arkansas is approximately $126. However, it’s crucial to note that this figure does not include expenses such as land costs, permit fees, excavations, and other related costs. On average, home building costs in Arkansas range from $225,000 to $500,000. Here’s a breakdown of costs based on different square footage:

• Minimum (800 sq. ft.): $100,800
• Maximum (5,000 sq. ft.): $630,000
• Average Range: $225,000 – $500,000

Factors Affecting Building Costs

Several factors can impact the overall cost of building a home in Arkansas:

1. Material Costs: Framing lumber is one of the highest material costs, amounting to around $33,000 for a 2,000 sq. ft. home.
2. Labor Charges: Contractors typically charge between 10% to 20% of the total construction value. This includes hiring various professionals like electricians, plumbers, and carpenters.
3. Electrical and Plumbing Costs: Expect to allocate around $7,500 to $12,500 for electrical work and approximately $12,000 for plumbing installations.
4. HVAC Installation: Installing a new HVAC system can range from $1,500 to $12,500, depending on various factors like system type and size.
5. Roofing Costs: Roofing expenses vary based on the chosen material. For instance, asphalt shingle roofing costs between $144.50 to $234.82 per 100 sq. ft.

Soft Costs: Permits and Land Expenses

1. Land Cost: The average price per acre in Arkansas is approximately $6,739. You’ll also need to allocate additional funds for land preparation, which can range from $1,500 to $3,000.
2. Permit Costs: Building permits are essential and vary by county. On average, permit costs can amount to approximately $5,000. This includes building permits, HVAC permits, plumbing permits, and electrical permits.

Home Interior Costs

After construction, there are additional expenses for interior furnishings, which can easily add up. Budget at least $20,000 for furnishings in a 2,500 sq. ft. home. If you opt for an interior designer, anticipate an average cost of around $5,400.

Financing Options for Home Building

If you’re in need of financing for your home construction project, there are several options available:

• Construction-to-Permanent Loan: This type of loan covers both land purchasing and home building costs. After construction, it converts to a conventional mortgage.
• Construction-only Loan: This loan is specifically for financing the construction and does not cover land purchase.
• Personal Loan: If you need additional funds for specific construction expenses, a personal loan can be an option.
• Home Equity Loan: For homeowners with existing properties, a home equity loan can be used to finance part or all of the new home construction.

Is Building Your Own Home Worth It?

Building your own home in Arkansas can be a rewarding experience, especially if you have the ideal piece of land. While it requires a significant investment of time and money, it allows for customization to meet your specific needs and preferences. However, if you don’t own land or prefer a quicker move-in process, buying an existing home may be a more convenient option.

In conclusion, building a home in Arkansas offers the opportunity for a brand-new, customized living space. By understanding the costs and financing options, you can make an informed decision that aligns with your budget and preferences.