Is Building Your Dream Home in Illinois Worth It?

Building your dream home in Illinois can be an exciting but significant undertaking. The process involves careful planning, budgeting, and a clear understanding of the costs involved. In this article, we’ll dive into the intricacies of home construction in Illinois, including average costs, key considerations, and financing options.

Average Cost of Building a House in Illinois

The cost of building a house in Illinois varies based on factors such as property type, size, and customizations. On average, homeowners can expect to spend between $257,500 and $405,000. This figure does not include expenses like land acquisition, permits, and excavations.

Key Takeaways:

1. Cost per Square Foot: The average cost per square foot in Illinois is $132.
2. Material Costs: Framing lumber is the highest material cost, accounting for about $33,000 for a 2,000 sq. ft. home.
3. Potential Cost Increases: Rising material costs, expensive labor, and supply chain issues may lead to increased construction costs.
4. Financing Options: Options include construction loans, USDA construction loans, and VA construction loans.
5. Buying vs. Building: In many cases, buying an existing home in Illinois may be more affordable than building a new one due to additional costs like land acquisition and permits.

Is Building Your Own House in Illinois Feasible?

Yes, it is entirely possible to build your own house in Illinois, especially if you have an ideal piece of land in a preferred location. However, it’s crucial to budget both time and cost for the construction process. Additionally, obtaining the necessary permits is a crucial step, and fees vary by county.

Breaking Down the Costs

Hard Costs to Build a House in Illinois

1. Material Cost: Roughly $147,500, making up about 50% of the overall building prices.
2. Contractor Charges: Range from 10% to 20% of the total construction value.
3. Electrical Costs: Approximately $7,500 to $12,500.
4. Roof Installation Costs: Between $3,100 and $35,500 depending on roofing material.
5. Plumbing Costs: Around $12,000.
6. HVAC Installation Costs: Starting from $12,500.

Soft Costs to Build a House in Illinois

1. Land Cost: Averaging $26,000 per acre, including land purchase and preparation.
2. Building Permit Costs: Approximately $5,000, varying by county.
3. Home Interiors: Budget at least $20,000 for furnishings.
4. Home Interior Designer Costs: Averaging $5,400, depending on requirements.

Financing Your Dream Home

If you need financial assistance, there are several options available:

1. Home Construction Loan: Options include Construction-to-Permanent and Construction-only loans.
2. Personal Loan: Useful for financing specific aspects of construction.
3. Home Equity Loan: For homeowners looking to use existing property equity to fund construction.

Conclusion

Building your dream home in Illinois is a significant endeavor that requires careful planning and budgeting. While it offers the opportunity for a customized living space, it’s essential to be aware of all associated costs. With the right approach and financing, constructing your own home can be a fulfilling and rewarding investment.