Homebuyers are flocking to North Carolina, many hoping to build new, and the state offers a perfect environment to realize that dream. The low cost of living, strong economic centers, and lovely year-round climate are a strong magnet for young millennials looking for lucrative jobs in the research triangle of Raleigh, Durham, or the banking mecca of Charlotte — as well as retirees seeking the peace and rugged beauty of the Blue Ridge mountains or the lovely coastal area along the outer banks. In fact, according to the Joint Center for Housing Studies of Harvard University, North Carolina ranked third for domestic migration in the U.S., behind Florida and Texas. But what is the cost to build a house in North Carolina? If you are transplanting to North Carolina and hoping to build, or selling an existing home in favor of building your dream home, you are in luck. North Carolina is one of the least expensive states in the country to build, largely due to the state’s low labor costs. At an average cost of $117.79 per square foot, building a home in the Tar Heel state can be very affordable. To help you navigate the ins and outs of building in North Carolina, we spoke with Thomas Wohl, a highly-ranked real estate agent serving the Raleigh-Durham-Chapel Hill region with 29 years of experience, specializing in new construction, first-time home buyers, and relocations. Let’s dive into the steps to building a house in North Carolina. Building a home outside North Carolina’s major metropolitan areas, such as Lexington, is the least expensive option, with an average cost of $117.79 per square foot, while building a home in Chapel Hill is the most expensive option, at an average cost of $128.92 per square foot. Here is a look at cities in North Carolina and the average cost per square foot to build a home: No matter which state you’re in, the steps involved in building a house will vary depending on whether you’re buying a tract home — which is when a builder has bought a large tract of land to divide into lots and build out several homes — or if you’re building a custom home. Keep in mind that the price ranges we’re providing are a general estimate. Your agent and, eventually, your builder can give you much more specific information on pricing! Here is an at-a-glance look at the average costs of each phase of building, but we will break it all down next: According to an April 2022 report by the National Association of Realtors, land sales rose 6% in 2021. Land sales for residential use were also up, accounting for 4% of all residential real estate sales in 2021. Currently, there are more than 15,000 land listings in North Carolina, at an average per acre price of $22,917. Of course, the cost of land is going to be quite different from community to community. In Lexington, land is listing for approximately $10,000 per acre, while a half-acre in a new subdivision in Mooresville went under contract in September for $46,500. Foundation costs will vary depending on whether you’re pouring a slab or digging a basement, but a typical price range is between $4,000 and $13,500. According to Wohl, only about 10% of new homes in North Carolina have full basements. “Most of the newer homes are built on a concrete slab,” he says. “For higher-end homes, they will add a crawl space for easier renovations in the future. But slabs are a far less expensive way to build.” Framing is when the sticks go up and a structure actually starts to take shape. Expect to pay between $14,000 and $32,000 for this phase of building a house in North Carolina. Framing costs tend to vary due to both the size of the home and the complexity of its design — a one-story home with 2,000 square feet of living space will generally be less expensive to frame than a two-story home with the same square footage. Roofing doesn’t come cheap — whether you’re putting one on a new house or replacing the roof on an existing home. The costs of a new roof typically range from $5,700 to $11,800. In North Carolina, as in most states in the U.S., asphalt shingles are the most common type of roofing, primarily due to the ease of installation and the lower price point. But metal roofing and tile roofing are gaining in popularity in North Carolina because of their durability and most importantly, their ability to make the home more energy efficient. Here is an estimate of the different types of materials available: Siding is another big variable in the cost to build a house in North Carolina: Are we talking vinyl, wood, brick, concrete, stone, stucco, or something else entirely? Siding costs range between $5,000 and $14,000, with vinyl or engineered wood siding typically costing between $3 and $12 per square foot. According to the National Association of Homebuilders, stucco and vinyl are among the most common siding material on new single-family homes. Fiber cement siding such as Hardiplank or Hardiboard, and brick or brick veneer were not far behind. Wood siding was used on only 4% of new homes. Typical siding materials used in North Carolina include vinyl, wood, fiber cement and brick. Vinyl is the most popular siding used in new builds in North Carolina because it is cost effective and available in a wide array of colors — It is also easy to maintain. Wood siding is preferred in some areas because it is eco-friendly and blends in so beautifully with the state’s many lovely, wooded environments. Unfortunately, it is not always the best choice, given North Carolina’s humid and rainy climate. In addition, it is more expensive than vinyl and requires a lot of maintenance to prevent termite damage and wood rot. Fiber cement siding or Hardie board, is growing in popularity in North Carolina. This fairly recent and durable option is a composite of sand, cement, wood, fiber and other additives that can be manufactured to look like wood, stucco or other natural siding choices. It is one of the most expensive options, primarily due to the high cost of installation. And finally, another popular – but expensive – choice is brick siding, which North Carolinians love for its beauty and durability. Here is a rough comparison of various siding materials: You guessed it — appliance pricing also varies widely. Depending on brand, functionality, finish, and so on, you’ll spend an average of $10,875 if the home does not come with any, but you can definitely drop up to $24,400 or more on high-end appliances. The installation of a new heating and cooling system could cost upwards of $12,500 depending on the size of your home. Heat pump tax credits are available to help homeowners cover some of the cost of heat pump purchase and installation up until 2032 (up to 30% of the costs, up to $2000). Plumbing can cost anywhere from $2,000 to $5,000 on average — not including fixtures like sinks and toilets. The cost to wire a house is, on average, between $500 and $2,300. Permits vary by state, city, and county, but they typically range from a few hundred dollars to a few thousand. According to Wohl, permits in North Carolina are issued through the county or the city and those entities are also tasked by state law with conducting inspections throughout the construction process. “Getting a permit is a non-issue,” he says. “Builders are pulling back a bit on getting permits in North Carolina right now, but it’s not due to delays from the county, but because of the delays in getting materials to build.” Finishes and fixtures comprise everything from countertops to sinks, and lighting to flooring. Needless to say, pricing varies widely and depends heavily on your preferences. Average carpet installation costs can start at several hundred dollars and go up to $3,000, while hardwood flooring installation starts around $2,500 on up to $7,000. Laminate countertops tend to range from $790 to $1,626, while granite averages from $2,250 to $4,500. As a general rule, building a custom home that is tailored to your every need will be more expensive than buying a tract home from a builder. On average, building a tract home in North Carolina will cost $117 per square foot, while building a custom home could be as much as 20% to 50% above that cost. While building a tract home is less expensive, recent trends in North Carolina have greatly limited homebuyers’ choices when building in an existing development, according to Wohl. “Before the pandemic, when you wanted to build a house, you contacted a builder, picked out your design, and chose your lot,” Wohl explains. “Due to shortages of labor and materials, builders are limiting design selection. The builder will now tell you what floor plans are available and what options you have in your choice of materials. Buyers have to be prepared and understand they have limited choices because their preferred materials may no longer be available.” While building a custom home gives you more options, it will also require you to assemble a team of experts to design and build the home from start to finish. Here are the team members you will need and a breakdown of what they might cost you: Hiring an architect will be integral to making your vision come to life when building your custom dream home. Before you start your search for the right architect, get clear about what you are looking for. Be sure to do your research and ask your network for recommendations for architects in your area with experience designing the kind of home you are looking to build. The cost of hiring an architect could make up anywhere between 5% and 20% of the final cost of the build. For a 2,000 square foot home in North Carolina, with a final build cost of $235,580, that would amount to between $11,779 and $47,116. Some architects will opt to charge by the hour or per square foot of the build for their services, but this is less common. In North Carolina, the average cost is approximately 10% of the construction cost, so a $235,580 build would mean the architect fee would be approximately $23,500. A general contractor will oversee the entire process of building your custom home — they will also be responsible for hiring and paying subcontractors, vendors, and construction workers. General contractors typically charge what is called a “cost-plus” fee arrangement which accounts for the cost of the labor and materials plus a negotiated fee for the general contractor. This usually comes out to 10% to 20% of the final cost of the build. As we mentioned, building a custom home usually comes with additional costs. Again, your agent can help you determine more accurate costs — these are average figures provided to give you an idea. Land surveys, which identify your property lines and land features, range between $375 and $745. If you’re buying a tract home, the land price will be rolled into the overall price to build a home. If you’re buying a lot on your own and then building a custom home, you must consider the cost of excavation and grading, which will vary depending on the size of your build and the amenities you want to add to your property. General excavation may cost around $3,200 but you may also want to consider typical costs for excavation and grading for various aspects of your build: From mountain log houses to coastal plain beach homes, there are plenty of design choices when building a new home in North Carolina, if you are custom building. However, if you are going with a tract home in a new development, your choices may be more limited by the builder’s offerings. Typically, new development homes may lean more towards the craftsman, Cape Cod, or colonial styles. But within every architectural style, you will often find characteristics most typical of houses built in southern climates in North Carolina, including: In North Carolina’s humid summers, all of these features can be helpful in escaping the heat of the day and homebuyers should be on the lookout for these amenities when considering the purchase of a home there. According to Wohl, one of the styles you see most rarely in new home construction is a ranch style home. “We generally do not see ranch style homes in the newer developments, with the exception of the 55+ communities,” he says. “One of the reasons is because we have such a huge influx of new homebuyers, that most developers are building homes on less than an acre of land.” In fact, Wohl notes, even townhomes are rarely two stories anymore. Most of the builders have gone to three-story townhomes to maximize the square footage on a smaller land footprint. While it may be easier to construct a single-story ranch home, the larger foundation and the more expansive roof may actually make the ranch home more expensive to construct. Although the single-story ranch is less common, Wohl says he does see the raised ranch style quite often. “Because lots are so much smaller, you could consider a raised ranch style home, which gives you the ranch style look, but affords you the greater square footage of a two-story home.” While going with a bare-bones building strategy can get you into a new construction home for less, cheaper isn’t always better. Shoddy build quality will inevitably lead to problems down the road — anything from a leaky roof to poor sound insulation can be a frustrating discovery when you’ve only been in your new home for a few months — and there’s value in creating a home you genuinely want, not just one you’re settling for. Alternative home building options can give you more for your money and offer valuable flexibility during the construction process. A tiny house is usually 600 square feet or less in size. They’re not ideal for large families, but building a tiny house can be faster and more affordable than a conventional home if a smaller space fits with your lifestyle. On average, tiny homes cost between $30,000 and $60,000 to build. Tiny houses are growing in popularity in North Carolina, especially in the mountain towns, where tiny home communities are springing up. They can also be a great option as a starter home — especially since construction of new starter homes as declined between 24% and 31% since 1980, according to researchers at Freddie Mac. One of the growing attractions of these communities is the added amenities, the costs of which are shared by the homeowners, for instance a community garden, a dog park, or fitness area, such as in The Village in the Blue Ridge Mountains. However, if you want to build on your own, do your research, as North Carolina has its own specific regulations concerning size and construction. A modular home is a home that is built in sections in a factory and then transported and assembled on the homesite. A prefabricated or manufactured home is built entirely offsite and transported in its entirety to the site. According to ModularHomes.com, at a per square foot price of $55-$75, you can build a new modular home in North Carolina for as low as $117,000, depending on where you choose to live. Modular and prefabricated homes are generally less expensive because there is less material waste, they take less time to build, and require less manpower since the homes are constructed in a factory setting where tasks are managed in a more efficient manner. While the price of a modular home in North Carolina is less expensive than a tract home or custom build, the prices will vary depending on the style and square footage. Because the science of modular building has gotten more sophisticated through the years, there is a surprising range of housing types and styles to choose from. This is true with manufactured housing as well, which is estimated to make up more than 12% of North Carolina’s housing stock. As a general rule, buying an older home will be cheaper than building a home. The median cost of new construction was $385,000 in January 2023. Comparatively, the median cost to buy an existing home was $329,634 in December 2022. While building a home will almost always come with a higher price tag upfront, there are some long-term savings that new construction homeowners enjoy: “New construction will always win over an old home,” Wohl says. “Homebuyers like to design their kitchens, especially, and choose a floor plan that fits their needs. And the biggest advantage of building a new home is that it is maintenance free.” If you are hoping to build rather than buy, the most important thing you can do is to do your homework. You probably know how much you can afford to spend on a home, and you will want to carefully consider what location and amenities are going to best fit your lifestyle, and where it is most important for you to invest those dollars you have to spend. Some buyers will prefer a larger piece of land while others will want to put their money in high-end finishes. An experienced real estate agent can be your greatest asset in identifying a property that meets your needs and finding a builder that can craft a home that fits your specific requirements and budget.Average cost to build a house in North Carolina by city
City
Cost per square foot
Asheville
$124.37
Chapel Hill
$128.92
Charlotte
$114.65
Lexington
$109.73
Wilmington
$121.54
Winston Salem
$113.67
Step-by-step costs to build a house in North Carolina in 2023
Building Phase
Average cost (2023)
Foundation
$9,046
Framing
$14,000 – $32,000
Roof
$5,700-11,800
Siding
$10,750
Appliances
$10,875
HVAC System
$7,000
Plumbing System
$4,080
Electrical System
$1,436
Building Permits
$1,420
Finishes and Fixtures
$42,000 – $175,000
Buying a plot of land ($34,107 per acre)
Foundation ($4,000 – $13,500)
Framing ($14,000 – $32,000)
Roof ($5,700 – $11,800)
Siding ($5,000 – $14,000)
Siding material
Cost per square foot
Brick
$9
Fiber Cement
$6
Metal
$3 – $11
Stone
$20
Vinyl
$5
Wood
$2 – $6
Appliances ($10,875)
HVAC System ($12,500)
Plumbing System ($2,000 – $5,000)
Electrical System ($500 – $2,300)
Building Permits (Variable)
Finishes and Fixtures (Variable)
Before the pandemic, when you wanted to build a house, you contacted a builder, picked out your design, and chose your lot. Due to shortages of labor and materials, builders are limiting design selection. The builder will now tell you what floor plans are available and what options you have in your choice of materials. Buyers have to be prepared and understand they have limited choices because their preferred materials may no longer be available.
Building a custom home vs. a home in a development
Architect (10% of the final build cost)
General Contractor (10% – 20% of the final build cost)
Additional costs of building a custom home in North Carolina
Land survey ($375 – $745)
Excavation and grading ($3,200 and up)
Common styles of homes in North Carolina
More affordable options for building a home in North Carolina
Tiny homes ($30,000 – $60,000)
Modular and prefabricated homes ($55 – $75 per square foot)
Existing home vs. cost to build a house in North Carolina
Get started on building your dream home
