How Much Does It Cost to Build a Custom Home?

Published March 27, 2024

Building your custom dream home, is an investment of your time, money, and energy, but the benefits include having a luxuriously designed space that is tailored to your lifestyle and needs. One of the biggest considerations to keep in mind when designing your ideal home is the cost. At Lafollette Custom Homes, our custom homes typically cost between $200-$250 per square foot. When considering your budget for a project, here are the main drivers of cost in custom homebuilding to keep in mind. 

Site Preparation and Foundation

Where will your dream home be located? The location as well as the land itself will impact your overall cost. Building sites that have poor soils, a high degree of slope, creeks or ravines, or that contain rock that must be excavated can add a significant amount of cost to a building project.

Complexity of Design

Custom-designed homes with steep, complex roofs, very tall ceilings, and a “cut-up” design, often cost more than homes that have simple architectural designs. It’s important to balance your ideal aspirations for your home with practicality about how you need your space to function.

Materials and Fixtures

Metal roofs, non-textured ceilings and walls, wood-framed windows, tall solid-core interior doors, high-end quartz countertops, designer faucets, and light fixtures can all add up quickly and have a significant impact on the overall cost of the home. For budgeting purposes, most custom homeowners opt for standard features that can be upgraded and modernized over time. 

Smart Homes

Structured wiring, appliances, garage doors, irrigation systems, cameras, and air conditioning systems that can be controlled via an app, all add up quickly when it comes to cost. 

Energy Efficiency and Sustainability

Investing in energy-efficient features such as solar panels, high-efficiency HVAC systems, or sustainable building materials can impact the overall cost of your new home.


Each of these factors can vary greatly depending upon your decisions as a homeowner, which underscores the importance of having a builder who will keep you informed of the cost as you are making design decisions.  At LaFollette Custom Homes, we will work with you to make your dream home a reality while respecting your budget. Our virtual reality walkthrough process allows you to see your custom home before construction begins, enabling you to provide real-time feedback. This empowers us to make changes before starting the building process, saving everyone time, money, and headaches. Contact us to get started.

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