Rachel Cruze Breaks Down the 10 Cheapest States To Build a House

There are pros and cons to building a house. Among the pros: You can customize most every detail and won’t be signing up for costly renovations since you’re starting from scratch. As for the cons, you can expect a time-consuming project and a process that can cost you more than buying a house that is already standing.  

If the pros outweigh the cons and you decide to embark on building your own house, it’s good to know which states are the cheapest for doing so. In a recent blog post on Ramsey Solutions called “How Much Does It Cost to Build a House?” financial expert Rachel Cruze dug into data to pinpoint the 10 cheapest states to build a house. Cruze used research from Today’s Homeowner to assemble her list. 

These are the 10 cheapest states to build a house in 2024 — and what the housing market looks like in each, average-value-wise — along with the cost of living in each state, as compared to the national average. 

• Price per square foot: $144
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $302,204

In Tennessee, the cost of living is 10% lower than the national average, and the cost of housing is 18% lower, according to RentCafe. As of Sept. 5, 2024, the average home value in Tennessee is $326,084, per Zillow.

• Price per square foot: $144
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $301,739

The cost of living in South Dakota is 7% lower than the national average, and the cost of housing is 12% lower, according to RentCafe. The average South Dakota home value is $311,866, according to Zillow as of Sept. 5, 2024.

• Price per square foot: $143
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $301,079

In South Carolina, the cost of living is 6% lower than the national average, according to RentCafe, and the cost of housing is 21% lower. As of Sept. 5, 2024, the average home value in South Carolina is $300,746, per Zillow. 

• Price per square foot: $143
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $300,673

The cost of living in Oklahoma is 12% lower than the national average, and the cost of housing is 27% lower, according to RentCafe. The average Oklahoma home value is $208,910, per Zillow, as of Sept. 5, 2024.

• Price per square foot: $142
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $297,228

In Florida, the cost of living is 2% lower than the national average, and housing costs are on par with the national average, according to RentCafe. The average home value in Florida, per Zillow, is $399,130 as of Sept. 5, 2024. 

• Price per square foot: $141
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $297,062

The cost of living in North Carolina is 5% lower than the national average, and the cost of housing is 14% lower, according to RentCafe. The average North Carolina home value is $335,760, according to Zillow as of Sept. 5, 2024.

• Price per square foot: $141
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $296,107

In Louisiana, the cost of living is 9% lower than the national average, and the cost of housing is 18% lower, per RentCafe. The average home value in Louisiana, according to Zillow as of Sept. 5, 2024, is $205,610.

• Price per square foot: $139
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $291,397

The cost of living in Alabama is 12% lower than the national average, and the cost of housing is 38% lower, according to RentCafe. The average Alabama home value is $232,529 as of Sept. 5, 2024, according to Zillow.

• Price per square foot: $137
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $288,175

The cost of living in Arkansas is 8% lower than the national average, and the cost of housing is 23% lower, according to RentCafe. The average Arkansas home value is $210,371 as of Sept. 5, 2024, according to Zillow.

• Price per square foot: $137
• Total price for a 2,100-square-foot house spec, excluding the cost of land plot and development: $287,670

The cheapest state to build a home is Mississippi, where the cost of living is 13% lower than the national average, and the cost of housing is 29% lower, according to RentCafe. Per Zillow, as of Sept. 5, 2024, the average Mississippi home value is $183,340.