Many families are looking to set down roots and build their homes. Tennessee is a popular destination with multiple well-respected cities.
So what can you expect to pay if you’re thinking about building a house in this southern state? Here’s what you need to know about the cost of building a home in Tennessee.
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How Expensive Is It to Build a House in Tennessee?
The average cost to build a 2,000-square-foot home in Tennessee is around $262,000. Without considering the cost of land, site work, or other factors, the average cost per square foot is anywhere between $90 to $200. The average hovers around $130, and high-end homes can exceed $350 per square foot.
Cost Summary
There’s a lot more that goes into building a house beside the construction, labor, and materials. You’ll need land, permits, and other odds and ends. Here’s a quick cost summary of what it takes to build a house in Tennessee to give you a better idea of what you’re getting into.
| Building Permit Fee | $300 – $3,000 |
| Average Land Cost | $351,581 |
| 2,000 Square Foot House | $180,000 – $400,000+ |
| Average Square Foot Cost | $90 – $200 |
Cost By Size
The size of a house plays a vital role in the total expenses. As you would expect, smaller homes will cost less on average and larger homes will cost more. The average home size in Tennessee is around 1,850 square feet. For the chart below, we’ll be using $95 for the lowest price, $130 for the average, and $350 for higher-end projects. Here’s a rough estimate of what you might pay, depending on the size of your home.
| Home Size | Lowest | Average | High-End |
| 1,000 Square Feet | $95,000 | $130,000 | $350,000 |
| 1,200 Square Feet | $114,000 | $156,000 | $420,000 |
| 1,500 Square Feet | $142,500 | $190,000 | $525,000 |
| 1,800 Square Feet | $171,000 | $234,000 | $630,000 |
| 2,000 Square Feet | $190,000 | $260,000 | $700,000 |
| 2,500 Square Feet | $237,500 | $325,000 | $875,000 |
| 2,800 Square Feet | $266,000 | $364,000 | $980,000 |
| 3,000 Square Feet | $285,000 | $390,000 | $1,050,000 |
| 4,000 Square Feet | $380,000 | $520,000 | $1,400,000 |
| 5,000 Square Feet | $475,000 | $650,000 | $1,750,000 |
Keep in mind that these are rough estimates based on the price per square foot listed above. Your mileage will vary depending on several factors. The average low-end cost based on the chart is $235,600. The mid-range average is $321,900, while the average high-end price is $868,000.
Cost By City
The city you choose plays another role in the total expenses it takes to build a new home. Each town will have different low-end, average, and high-end costs per square foot. Here are some rough estimates to give you a better idea of what to expect.
| City | Cost Per Square Foot |
| Chattanooga | ~$115 |
| Clarksville | ~$115 |
| Cleveland | ~$115 |
| Cookeville | $105+ |
| Dyersburg | ~$115 |
| Franklin | $120 |
| Jackson | ~$115 |
| Johnson City | ~$110 |
| Knoxville | ~$110 |
| Memphis | ~$110 |
| Nashville | ~$120 |
As you can see, based on these rough estimates, Tennessee is a fairly affordable place to build a home. However, these are only rough estimates, and your mileage will vary depending on several different factors.
Land Costs in Tennessee
You’ll need to purchase a plot of land before you can start building your dream home. The type of land, size, and location play crucial roles in the total expenses and outcome of your project.
The average price per 1 acre in Tennessee is roughly $14,400 across the state. However, the location plays a vital role. In some cases, you’ll find plots of land that are selling for much higher. The average listing price is around $351,581 across Tennessee.
What Else Impacts the Price?
There are a lot of elements that can increase or decrease the price of an estimate. Factors like the type of project, land configuration, and the materials used can play vital roles. Here are a few quick things to keep in mind that may impact the total price of building a home in Tennessee:
- Larger homes with multiple stories will increase the price
- Complex exteriors or roofs can increase the price
- Decks, pools, patios, and other amenities can increase the price
- Difficult, oddly shaped, or steep lots will impact the price
- Using a custom design or blueprint can increase the price
- High-end finishes and materials will increase the price
As you guessed, larger and more complex projects will increase the price. Using higher-end materials, decorations, and amenities can also increase your total expenditure. One-story homes, simple roofs, standard building materials, and easy lots can decrease your total price in the long run.
Land Preparation
The area will need to be prepared before you can start building a home on a plot of land. Land preparation can include excavation, leveling, preparing utilities, and more. These costs vary depending on the size of the project, the land, and the circumstance. You can expect to spend anywhere between $5,000 to $35,000, depending on the size and type of project.
Finishing Touches and Miscellaneous Expenses
The finishing touches and miscellaneous expenses are areas that are often overlooked. However, it’s important to factor these elements into your budget, so you don’t overspend.
Landscaping designs and driveways can easily add $14,000 to a project. Different add-ons like a porch, patio, deck, or pool can also add in thousands of dollars.
Not to mention, the final clean-up costs may end up around $3,000. Most home-building projects will require a minimum of $11,000 for a miscellaneous category that goes towards different odds and ends. Be sure to factor this into your total budget before you start your project.
Additional Expenses
There will be additional expenses besides the finishing touches and miscellaneous building costs. After everything else is handled, you’ll need to payout your builders and the vendors used for the construction project. The total price may come out to around $45,000.
Management fees, the crew’s wages, financing, marketing, overhead, and more might be added into the additional expenses category. However, you may end up overspending if you don’t factor these costs into your total budget. Your builder will typically go over these costs with you beforehand, but ask to be sure.
What’s the Cost to Build a House in Tennessee?
You might expect to pay around $262,000 when building a new 2,000-square-foot home in Tennessee. The average cost per square foot is anywhere between $90 to $200, with high-end projects exceeding $350.
Keep in mind that this price can vary, and you might end up spending anywhere between $300,000 to $600,000. The total cost will depend on the size of your project, the land, the materials used, and several other factors.
