I Asked ChatGPT How Much It Costs To Build a House in 2025 — Here’s What It Said
Written by
Martin Dasko
Edited by
Brendan McGinley
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Could you save money building a home yourself instead of trying to buy one? With mortgage rates bouncing around even as they slowly decline, it’s an intriguing proposition. According to data from Realtor.com, the housing supply gap totaled 3.8 million in 2024, even though new-home construction is exceeding household formations for the first time since 2016. At their present ratio, with the backlog of households in want of homes, supply will take 7.5 years to satisfy demand.
Another report from Realtor.com revealed that only 28% of the homes on the market in July of 2025 were below the maximum affordable price for a median-income household in the U.S., which has dropped $30,000 to $298,000 since 2019. We’ll review the information you receive when prompting ChatGPT about the cost of building a house in 2025, since — given the gap’s severity — you may find it a tempting option to build your own house rather than buy.
How Much Does It Cost To Build a House in 2025?
In 2024, moveBuddha named Myrtle Beach, South Carolina, as the best city for new home construction. While Houston is building the most homes in America (23,000), Myrtle Beach is adding the most per capita, at 10,688: ten times the availability. As a result, GOBankingRates asked ChatGPT to estimate the cost of building a house in Myrtle Beach in 2025.
Prompt: How much is it to build a standard three-bedroom, 2-bathroom home in Myrtle Beach, South Carolina, in 2025?
This one prompt led to a full breakdown of all the costs. Here’s a summary of what the prices look like.
ChatGPT’s answer:
- Base build (1,800-2,200 square feet): $198,000-$462,000
- Land: $100,000-$500,000
- Permits and Site Prep: $14,000-$44,000
- Finishes and Fixtures: $34,000-$72,000
- Total (complete project): $346,000-$1.08 million
Final estimates for a three-bed, two-bath home:
- Basic build (standard finishes): $350,000-$500,000
- Mid-range quality: $500,000-$700,000
- High-end or custom: $700,000-$1.1 million
*These ranges include construction, land acquisition, permitting, site prep and finishing details.
Land, permits & site preparation (based on Stroudswood Construction’s 2025 guide):
- Land: $100,000-$500,000 depending on location and lot desirability
- Permits (building, electrical, plumbing, impact fees, etc.): $3,800-$11,500
- Site prep (grading, clearing, utility hookups): $10,000-$33,000
Prompt: Can you include the cost of materials, labor, inspections, appliances and any other relevant expenses?
ChatGPT’s answer:
Systems & finishes additions:
- HVAC, electrical, plumbing: $60,000-$80,000
- Appliances, fixtures, lighting: $10,000-$30,000
- Finishes & interiors: $30,000-$150,000 depending on level of luxury
Permits, inspections & site work:
- Permits & inspections: $5,000-$10,000
- Site prep & hookups: $10,000-$33,000
- Utilities hook-up can be notably expensive: one anecdote cited $60,000 alone for water and power setup in rural SC
Summary of costs:
- Low-end build (standard finishes + full system install + permits & site work): ~$400k-$520k
- Mid-tier (higher finishes, complete systems): ~$500k-$750k
- Luxury/custom version: can creep from $730k up to $1.5M or more
It’s worth noting that without being prompted, ChatGPT provided the following commentary in its response about homebuilding prices:
“For comparison, the median listing price per square foot in Myrtle Beach as of early 2025 is about $239 per square foot, with median home listing around $300,000. This helps contextualize whether building makes financial sense relative to buying.”
ChatGPT also asked about the exact square footage you’re planning, desired finish level, appliance inclusion preferences and lot information for the property, all of which dramatically affect the price of not only construction, but the hidden costs of building a home. You can customize the input based on precisely what you’re looking to build. This leads us to an important question…
Is It Worth Building a House in 2025?
While you can still find a cool house for under $100,000 even in 2025, the odds are against it. After taking into consideration what ChatGPT responded with and expert advice, here’s what you should think about if you want to build a house in 2025.
The Impact of Ongoing Economic Conditions Has To Be Considered
ChatGPT’s estimate falls squarely in the middle of the range of homebuilding costs around the nation, and right on the bullseye for South Carolina. Regardless, a new factor has come into play in 2025. The most challenging variable to calculate is the impact of ongoing economic conditions, such as inflation and tariffs, on the construction process. With these additional factors to consider, building a home would require careful planning, since the timing and choice of materials matter.
Omer Reiner, a licensed Realtor and president of FL Cash Home Buyers, LLC, said, “Tariffs are just starting to affect new construction as stocked materials are being depleted and builders are putting in orders for what they need at new and higher prices.” Reiner noted that if you’re looking to build a home, you’ll want to conduct some research on where builders in your area are sourcing their materials, because you might find a better deal with those using native manufacturers.
You Can Build a Home, but It May Be Worth Waiting
For most home buyers, purchasing an existing home is often the easier and more predictable route, as you know exactly what you’re signing up for. However, in some markets, it could be more rewarding and a better investment to build your own home.
Reiner said, “In my view, if your heart is set on having a new build that is going to be your forever home, I would hold off six months or so to see what happens with trade imbalances and interest rates. For those seeking to get into a home of their own sooner? Work with a real estate agent to find an existing home that fits the bill.”
Waiting may pay off for you no matter which path you take. In defiance of recent rate projections, September of 2025 saw the heady mortgage highs fall slightly. They may continue to do so, saving you thousands in the long run.
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