Cost to build a house by state
The average cost of a custom home can also vary widely between states. “It will always be different in different areas,” Hartman says. “The cost of labor changes, what the county or state requires is different, the supply chain is different, there’s different insulation requirements. It varies quite a lot.”
The price of land in varying states is among the most determining cost factors in 2025, says Steven Webb, director of legislative affairs at the North Carolina Home Builders Association. While permitting and zoning fees do play a role, they are minimal compared to the significant land cost disparity between urban centers and rural farmland. “[Government fees] may be anywhere from a few hundred to a couple thousand dollars, he explains. “I saw an acre of land for over $400,000 in Raleigh. It’s all land cost right now.”
To determine the most and least expensive states to build a 2,100-square-foot house, we used insights from Home-Cost, a cost estimation software for homebuilders that uses data from sources such as the National Association of Home Builders, the US Census Bureau, and its own database. Note that these are averages (cost in different zip codes by state will vary greatly) and take into account general contractor fees, though they exclude development costs like excavation, material quality, and design complexity.
The most expensive states to build a house
Alaska
- $294 per square foot
- $616,749 overall
Several major factors contribute to Alaska’s steep building costs. Many rural communities are difficult to access, which drives up transportation and shipping costs for building materials. Skilled labor is also in short supply, further inflating labor expenses. “Labor moves to where the market is hottest,” said Webb. “So a lot of the skilled labor, whether it’s the framers or the electricians, the HVHC, all those folks, they’re going to stay in the areas where they can stay busy and that’s in the high-growth urban settings.”
Additionally, the state’s long and harsh winters limit the construction season, reducing the number of homes that can be built annually.
California
- $291 per square foot
- $611,205 overall
While California doesn’t face Alaska’s winter challenges, its high cost of living significantly impacts labor and material expenses. Builders also contend with restrictive zoning laws and strict building standards, which add to construction costs.
Hawaii
- $287 per square foot
- $603,561 overall
As an island chain, Hawaii faces high land costs and expensive material transportation from the mainland. Homes must also be built to withstand hurricanes, heavy rains, and humidity, requiring specialized materials and design. Like Alaska and California, Hawaii’s complex zoning regulations and permitting process also drive up costs.
Massachusetts
- $285 per square foot
- $597,450 overall
According to Zippia, land in Massachusetts averages a staggering $333,200 per acre, which adds to already high construction costs. Rising labor and material costs and ongoing supply chain issues further plague the cost of building a home in the state.
Connecticut
- $281 per square foot
- $589,722 overall
