How much does a new House REALLY COST?

Residential Project Costs Checklist                       Last Update - Summer 2025

There are many costs associated with the design, construction, and development of a new house project. Many homeowners believe the only cost, after procuring a suitable property on which to build, is what they will pay their General Contractor, through the contract for construction. In reality, a homeowner will incur many other costs, and their total impact can be substantial. Below is a checklist for homeowners to consider as they plan a new house. All these costs are beyond what is typically included in the general contract for construction with a General Contractor (GC). The costs are listed in approximate chronological order from earliest to latest.

Costs before Construction begins:

Survey – includes easements, fences, utilities, boundaries, topography, and much more.

Geotechnical testing – in some locations, a geotechnical test is recommended to determine soil conditions below the surface.

Percolation test – this test is needed to determine how fast water seeps into (or percolates) into the ground.  It is needed if a septic field is planned.

Water rights review – if the property is not served by municipal water, analysis of water rights and likelihood of future water supply may be recommended.

Zoning review – many municipalities require a submittal to the planning department or other agencies before issuing a building permit. Check with the authority having jurisdiction (AHJ).

Access Permit – some jurisdictions regulate the access into a property and may have strict standards governing its layout and design. This may be called a driveway permit and may require a separate application.

Homeowners Association (HOA) review – if the property is located within an existing HOA, a preliminary plan should be submitted to the HOA to determine compliance before detailed plans are developed.

Design fees – many designers are involved in the design of a new house. In addition to an Architect, there is likely to be a Civil Engineer and a Structural Engineer. Depending on the complexity of the heating ventilating and air conditioning (HVAC) system there may also be a Mechanical Engineer. Anything complex in the power or lighting systems will lead to the involvement of an Electrical Engineer. An Interior Designer may be a desirable addition to the design team. In addition to designing the project and producing bid documents for the GC and permit documents for the municipality, the Architect and occasionally one or more of the other designers should be involved during construction. This provides a needed level of quality control and an important check on the GC’s compliance with terms of his contract with the Homeowner.

Energy Code compliance verification – some jurisdictions may require an energy model or energy compliance verification, to demonstrate the intended construction project will consume no more energy per square foot than the current target value. If needed, this calculation can be supplied by the Architect, Mechanical Engineer if one is on the project, or possibly the mechanical subcontractor.

Building permit application – most locations will require a building permit application. The actual permit is usually paid for by the GC.  The cost may be a flat fee or a percentage of the estimated construction cost.

Costs during Construction:

Homeowners Insurance – the homeowner should have a policy, called Builder’s Rosk Insurance, to cover events during construction. The policy typically lasts for 12 months but may be extended. Cost is usually 1% to 4% of construction value. This is in addition to the insurance policy carried by the GC and its subcontractors. The homeowner should request a written copy of the GC’s policy, and it must be current and maintained throughout construction.

Wet utilities – if municipal water is available, pipe, with a meter, will need to be brought to the house. There will be a fee for this known as a tap fee. Cost is dependent on the size. If a sewer system is available, there will be a connection fee for that also.

Well – rural locations may require a new well. This can be very expensive depending on depth. Note, septic field, if needed, is usually included in the GC’s bid.

Dry utilities – electrical and cable will usually need to be brought onto the property if they are available in the nearest street. The Homeowner will pay a fee to the utility company for this service, which will also include a transformer or service pedestal. Long runs can become very expensive. There is usually a setup fee for installation of any internet service.

Natural gas or propane – if fossil fuel is needed on the property, there will be a connection fee to the natural gas supplier. Propane suppliers will change a fee to install a propane tank. Underground burial is recommended.

Temporary power – during construction, much electricity will be consumed. As the Homeowner is the customer of the utility company, the bills for power use during construction will be delivered to the Homeowner. Note, if power is not available during construction, the GC will use generators using gasoline or diesel and the GC will pay for that, although the homeowner will eventually incur this cost.

Fencing – fencing may be included in the GC’s bid. In cases where the fencing is extensive, the Homeowner may wish to bid that directly to a fencing specialist.

Landscaping – landscaping may be included in the GC’s bid. If landscaping is extensive, the Homeowner may consider working directly with the landscape subcontractor.

Costs after Construction is complete:

Appliances – the GC may include appliances in his bid (with an extra charge for processing and coordination), but the homeowner may purchase appliances directly and avoid the overhead cost of the GC. Appliance suppliers will provide installation and ongoing service if needed.

Window coverings – these can be included in the GC’s bid, but that entails additional overhead cost. Window coverings have become expensive and even a modest house may run into thousands of dollars. Online suppliers have made window covering purchase and installation easy and more affordable.

Interior furnishings – Homeowners often assume their existing furnishings will be appropriate for a new house. It is recommended that homeowners inventory their existing furnishings and determine in advance which will fit the new house. A budget for new furnishings can then be established. An Architect or Interior Designer can assist the homeowner to determine which, if any, existing furnishings are appropriate for the new house.

Moving – many homeowners forget how costly even a short distance move can be. Cost is usually dependent on the size of the load.

Note: This list is provided to assist homeowners in determining the TOTAL cost of developing and building a new house. The author strongly recommends every homeowner should make a total project budget that includes the amount of the Contract for Construction plus any and all of the above costs and further add any other external costs that may be unique to their specific project. This should be done BEFORE the homeowner commits to the project or signs a Contract for Construction, even if rough estimates are used for some items. This list does not include any costs related to construction financing or mortgage related costs.  The homeowner should confer with their financial advisors and loan/mortgage holders for costs related to that aspect of the project. 

It is not possible on a generic list such as this to anticipate every cost that may be encountered, and the author accepts no responsibility for the consequences of any homeowner’s use of this information.