Top Affordable States
The 5 cheapest states for new home construction
#1 Cheapest
Alabama
$89/sq ft
$165,000 avg total
#2 Cheapest
Arkansas
$90/sq ft
$158,000 avg total
#3 Cheapest
Mississippi
$90/sq ft
$158,000 avg total
#4 Cheapest
Oklahoma
$105/sq ft
$200,000 avg total
#5 Cheapest
Tennessee
$109/sq ft
$212,000 avg total
Free Instant Estimate
Know exactly what your build will cost
Enter your zip code for a 14-category breakdown adjusted to your state. Results in 3 minutes.
All 50 States Ranked
Construction costs — lowest to highest
States with lower labor rates, simpler permitting, and lower land development costs rank as the most affordable places to build. Click any state for a full local guide.
| Rank | State | Avg Cost | Per Sq Ft | Vs National Avg |
|---|---|---|---|---|
| #1 | Alabama | $165,000 | $89 | 34% lower |
| #2 | Arkansas | $158,000 | $90 | 33% lower |
| #3 | Mississippi | $158,000 | $90 | 33% lower |
| #4 | Oklahoma | $200,000 | $105 | 22% lower |
| #5 | Tennessee | $212,000 | $109 | 19% lower |
| #6 | Georgia | $225,000 | $110 | 18% lower |
| #7 | Kentucky | $198,000 | $110 | 18% lower |
| #8 | Missouri | $210,000 | $110 | 18% lower |
| #9 | Kansas | $205,000 | $111 | 17% lower |
| #10 | Nebraska | $205,000 | $111 | 17% lower |
| #11 | Louisiana | $212,000 | $112 | 16% lower |
| #12 | South Carolina | $218,000 | $112 | 16% lower |
| #13 | Texas | $235,000 | $112 | 16% lower |
| #14 | Indiana | $215,000 | $113 | 16% lower |
| #15 | North Carolina | $225,000 | $113 | 16% lower |
| #16 | South Dakota | $198,000 | $113 | 16% lower |
| #17 | Wyoming | $205,000 | $114 | 15% lower |
| #18 | Idaho | $218,000 | $115 | 14% lower |
| #19 | North Dakota | $202,000 | $115 | 14% lower |
| #20 | Iowa | $208,000 | $116 | 13% lower |
| #21 | New Mexico | $208,000 | $116 | 13% lower |
| #22 | West Virginia | $198,000 | $116 | 13% lower |
| #23 | Ohio | $228,000 | $120 | 10% lower |
| #24 | Wisconsin | $228,000 | $120 | 10% lower |
| #25 | Arizona | $248,000 | $121 | 10% lower |
| #26 | Montana | $218,000 | $121 | 10% lower |
| #27 | Utah | $248,000 | $121 | 10% lower |
| #28 | Florida | $245,000 | $122 | 9% lower |
| #29 | Michigan | $238,000 | $125 | 7% lower |
| #30 | Virginia | $255,000 | $128 | 4% lower |
| #31 | Minnesota | $262,000 | $134 | 0% lower |
| #32 | Nevada | $268,000 | $134 | 0% lower |
| #33 | Colorado | $295,000 | $137 | 2% higher |
| #34 | Pennsylvania | $268,000 | $141 | 5% higher |
| #35 | Maine | $248,000 | $146 | 9% higher |
| #36 | Oregon | $285,000 | $146 | 9% higher |
| #37 | New Hampshire | $272,000 | $147 | 10% higher |
| #38 | Vermont | $255,000 | $150 | 12% higher |
| #39 | Illinois | $295,000 | $151 | 13% higher |
| #40 | Maryland | $305,000 | $153 | 14% higher |
| #41 | Delaware | $285,000 | $158 | 18% higher |
| #42 | Connecticut | $335,000 | $172 | 28% higher |
| #43 | Alaska | $285,000 | $173 | 29% higher |
| #44 | Washington | $348,000 | $174 | 30% higher |
| #45 | Rhode Island | $298,000 | $175 | 31% higher |
| #46 | New Jersey | $348,000 | $183 | 37% higher |
| #47 | Massachusetts | $362,000 | $190 | 42% higher |
| #48 | New York | $378,000 | $199 | 49% higher |
| #49 | California | $420,000 | $200 | 49% higher |
| #50 | Hawaii | $420,000 | $263 | 96% higher |
Why Costs Vary
What makes some states cheaper to build in?
Lower labor costs
In lower-cost states, contractor and subcontractor rates are more affordable — reducing framing, roofing, electrical, and finish costs significantly.
Simpler codes and permits
States with less complex code requirements and fewer local restrictions reduce pre-construction costs and shorten project timelines by weeks.
Less expensive site work
Flat lots, fewer climate-related challenges, and lower infrastructure costs make excavation, foundation, and utility hookups much cheaper.
Free Calculators for Your Build
Plan every part of your project — no account required.
Mortgage Calculator
Monthly payment & loan estimate
Try free →
Affordability Calculator
How much can you afford to build?
Try free →
Concrete Calculator
Foundation cubic yards & cost
Try free →
Deck Cost Calculator
Deck build cost by material & state
Try free →
Fence Cost Calculator
Fence cost by material & state
Try free →
Solar Panel Calculator
Solar cost, savings & payback
Try free →