Top Affordable States
The 5 lowest-cost states for new home construction
#1 Cheapest
Alabama
$89
$165,000 average total build cost
#2 Cheapest
Arkansas
$90
$158,000 average total build cost
#3 Cheapest
Mississippi
$90
$158,000 average total build cost
#4 Cheapest
Oklahoma
$105
$200,000 average total build cost
#5 Cheapest
Tennessee
$109
$212,000 average total build cost
All 50 States Ranked
Compare construction costs from lowest to highest
States with lower labor rates, simpler permitting, and lower land development costs usually rank as the cheapest places to build. Use the table below to compare average build cost and cost per square foot in every state, then click through for local guides.
| 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% higher |
| #32 | Nevada | $268,000 | $134 | 0% higher |
| #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 many lower-cost states, contractor and subcontractor rates are more affordable, which reduces framing, roofing, electrical, and finish costs.
Simpler codes and permits
States with less complex code requirements and fewer local restrictions can reduce pre-construction costs and shorten project timelines.
Less expensive site work
Flat lots, fewer climate-related challenges, and lower infrastructure costs can make excavation, foundation work, and utility hookups much cheaper.
Plan Your Build
Want a personalized estimate for your project?
Explore state-level construction cost guides or jump straight into an estimate based on your ZIP code, project size, and local cost conditions.