How Much Does it Cost to Build a House? [2024]

What factors affect the cost of building a house?

• Project home or custom designed: A project home is an 'off-the-shelf' design (you can usually go to a model home and walk through a version of it) versus a custom-designed home using an architect. The price difference can be huge
• Type of construction: your home's construction type will impact cost, specifically timber frame ($), brick veneer ($$) or double skin brick ($$$)
• Pricing structure: the individual builder and their pricing structure can vary significantly based on their experience and availability
• Location: The cost of building a house can vary significantly depending on its location. For example, the cost of building a home may be higher in a city with a high cost of living or in an area with a higher demand for housing
• Size: The size of the house is a significant factor in construction costs. Larger homes cost more to build than smaller houses, as they require more materials, labour, and other resources
• Materials: The type of materials used will impact the construction costs. For example, using higher-end materials such as granite countertops or custom cabinets
• Design: A more complex design with lots of custom features will increase the cost of the project, while a more straightforward design may be less expensive
• Labour: The cost of labour varies depending on the location and the availability of skilled workers. On average, up to 40% of the total cost is labour
• The site: A sloping plot of land with difficult access will result in higher construction costs than on a flat piece of land. If there are no existing connections to services such as water, gas, and electricity, this can also impact the costs
• Soil quality: if the soil is hard to work with, this can see increased building costs
• Bushfire Attack Level (BAL): if your property is in a bushfire-prone area, you will have more realisations to meet, which can cost more

How do global supply chain issues affect home building in Australia?

Global supply chain issues have dramatically impacted the construction industry in Australia, with construction materials costing more than ever. In fact, some sources say that the overall cost to build a house in Australia will be over $75,000 in 2023 compared to 2022.

• The average costs of timber have risen by between 20-40%
• Reinforced steel has risen by 40%
• Plastic piping is 26% more expensive

Global supply chain issues caused by the Russia/Ukraine war, COVID-19 restrictions and border closures, and a global labour shortage across all sectors have played a significant role in the rising cost of construction materials.

But it isn't just the supply chain shortages impacting the cost of building a house. Australia's lack of labour saw prices increase over 10% in the September 2022 quarter, according to the Housing Industry Association (HIA).

There are also more houses being built in Australia than ever before, thanks to the low-interest rates of 2021/early 2022 and a host of government grants.

Add this to the boom in house renovations, and there is more demand than supply. This has all combined to drive costs up.

What is the average cost of building a house per square metre?

The average construction costs per square metre to build a house in Australia is between $1300 per square metre and $3900+ per square metre.

Just remember that these figures are a rough guide, as building costs can vary significantly based on your location, the project design and the level of the fit-out. The final cost will be unique to the build.

Always consult with at least three local builders in your area for an accurate cost.

You also need to understand building contracts and how builders structure their charges. And remember, you'll need to factor in building approvals too.

How much does it cost to build a three-bedroom house?

How much does it cost to build a three-bedroom house? Home construction will be in the region of:

• $1300 per square metre for a three-bedroom weatherboard house on a level block, using budget materials
• $1600 – $1900 per square metre for a three bedroom full brick, single-level project home on a level block, using mid-range to high-end materials and finishes

How much does it cost to build a four-bedroom house?

How much does it cost to build a four-bedroom house? Home construction will be in the region of:

• $2400 per square metre for a four-bedroom brick veneer single-level project home on a level block using mid-range finishes
• $3900+ per square metre for an architect-designed four bedroom full brick, two-level home on a level block using high-end materials and finishes

How much does a five-bedroom and second-storey house cost?

How much does it cost to build a five-bedroom house? Home construction will cost over $4300 per square metre for an architect-designed five-bedroom home.

If you want to know how much a second-storey extension costs, the cost to build will be anywhere from $1850 to $3300 per square metre, depending on the quality and price of the construction materials and inclusions.

What is the average cost of building a house by state?

The most recent statistics from the ABS show that the most expensive state to build in is the ACT, with the average cost to build a house being $440,00. Conversely, the cheapest state to build in is Tasmania at $285,000.

However, it is important to note that these are from 2019, with construction costs increasing significantly since then. In April 2022, the ABS suggested that, on average, building a home costs approximately $473,000.

• ACT - $440,000
• SA- $275,000
• Queensland - $289,000
• Tasmania - $285,000
• NSW - $349,000
• Victoria - $327,000
• NT - $365,000
• WA - $298,000

If you already have an idea of the details for your new house, you can also use a building cost calculator for a more precise estimation of your construction job.

What are the hidden costs of building a house?

It's essential to be aware of hidden construction costs and factor them into your budget when building a house.

Top tip: It's a good idea to set aside a contingency fund to cover unexpected costs while constructing your dream home. These could include delays, cost overruns, and other unforeseen issues that require additional time, labour, or materials.

What important things need to be considered before building a house?

Top tip: speak with a local real estate agent and see what type of houses sell well in your area, so you can factor this in when planning your home construction.

How long does it usually take to build a house?

With the current labour and materials shortage, a new build that would previously take six months is now taking 9-12 months.

The amount of time it takes to build a house varies significantly depending on several factors, such as the size and complexity of the project, the availability of materials and labour, and the weather.

What are the hidden costs of building a house?

It's essential to be aware of hidden construction costs and factor them into your budget when building a house.

• Permits and fees: Building a house requires various building approvals, permits and payments to local government agencies, which can vary from state to state
• Inspection fees: Building a house requires inspections at various stages of the construction process to ensure that the work is being completed according to code and to identify any potential issues
• Financing costs: If you're financing the construction of your house through a mortgage or home construction loans, there may be additional costs, such as closing costs and other loan-related expenses
• Moving expenses: If you're building a new house, you will need to budget for moving from your existing home, such as hiring a moving company, renting a storage unit, etc.
• Landscaping and outdoor features: The cost of landscaping and outdoor elements such as decks, patios, and fences can add significantly to the overall cost of building a house

Top tip: It's a good idea to set aside a contingency fund to cover unexpected costs while constructing your dream home. These could include delays, cost overruns, and other unforeseen issues that require additional time, labour, or materials.

What important things need to be considered before building a house?

1. Budget: It's essential to clearly understand how much you can afford to spend on building a house and to set a budget accordingly. This will help you to make informed decisions about the size, materials, and features of the house and ensure that you don't overspend. Remember that contingency fund too!
2. Location: The location of the house can have a significant impact on its value, as well as your quality of life. Consider factors such as proximity to schools, public transportation, amenities, and the overall neighbourhood and community
3. Size and layout: Consider the size and layout of the house in relation to your needs and lifestyle. How many bedrooms and bathrooms do you need? Do you need a home office? Do you entertain frequently? These are all crucial factors to consider when designing the layout of your house
4. Materials and finishes: Consider the materials and finishes you want to use in your house construction. Do you want high-end finishes and custom additions? Or are you looking for more modest materials to keep costs down?
5. Energy efficiency: Energy efficiency is an important consideration when building a house. Look for ways to incorporate energy-efficient features such as insulation, energy-efficient appliances, and solar panels to save on energy costs in the long run
6. Future plans: Do you plan on staying in the house for a long time, or do you anticipate moving in the near future? This can affect the type of house you build and the features you include

Top tip: speak with a local real estate agent and see what type of houses sell well in your area, so you can factor this in when planning your home construction.

How long does it usually take to build a house?

With the current labour and materials shortage, a new build that would previously take six months is now taking 9-12 months.

The amount of time it takes to build a house varies significantly depending on several factors, such as the size and complexity of the project, the availability of materials and labour, and the weather.

What government grants are available to help homebuilders in Australia?

Several government grants and assistance programs are available to help homebuilders in Australia. These can be invaluable in offsetting construction costs and a great way to save money on building your dream home.

Nationwide government grants

• Help to Buy: this is a shared equity scheme with the government contributing 40% for new builds. There are only 10,000 spaces each year, but the good news is there is just a 2% deposit requirement. Applications will open in 2023
• The First Home Guarantee (FHBG): this Australian Government initiative supports eligible first-home buyers and can be used to offset home building costs. Under the FHBG, part of an eligible first home buyer's home loan from a Participating Lender is guaranteed by NHFIC. This enables an eligible home buyer to purchase a home with as little as a 5% deposit without paying Lender's Mortgage Insurance (LMI). There are also the Family Home Guarantee Scheme (for single parents) and Regional First Home Buyer Support

State-specific government grants

• ACT: Home buyer concession scheme (including First Home Owner Grant) can help with the cost of land
• NSW: $10,000 First Home Owners Grant for construction cost related to a new home, stamp duty concessions for new properties up to $650,000 and no stamp duty for vacant land worth less than $350,000
• NT: $10,000 First Home Owners Grant is available. There are also some discounts and concessions available, which means you may not need to pay stamp duty
• QLD: A $15,000 first homeowners grant is available for building a new house, unit or townhouse (valued at less than $750,000). There is also a $5,000 Regional Home Building Boost Grant and stamp duty concessions
• SA: South Australia does not offer stamp duty concessions, but there is a$15 000 one-off first homeowners grant for the construction of a new home
• VIC: Alongside stamp duty concessions is a $30,000 grant for first-home buyers who are building a new residence
• WA: In Western Australia, there are stamp duty concessions and a Building Bonus scheme of up to $20,000