So many Australians aspire to build a home from scratch, but when you see the cost, you may be quickly turned off the project. But if you choose wisely particularly during the planning and design phases you can have an aesthetically pleasing, functional house that doesn’t bankrupt you. The secret is selecting the type of house that has fewest dollars tied up in bricks, mortar or shingles per square foot, and that often has to do with size, design, materials and labor.
In this article, and we’re going to take a look at the cheapest home styles, how to save money, and get the biggest bang for your buck if you’re building a new home, particularly in Texas. We will also take you to the tools and services you need such as our Construction Loan Calculator, Top Texas land buying spots and go-to home builders in order to get you started.
What Is the Cheapest Type of House to Build Per Square Foot?
When it comes to saving on construction costs, simplicity is king. Here are the most affordable home types:
1. Ranch-Style Homes
These single-story homes with open floor plans and simple roofs are the go-to for affordability. They are easy to build, maintain, and expand if necessary. Their square or rectangular shape minimizes the need for extra materials or complex architecture.
2. Tiny Homes
If you desire to be a minimalist, tiny homes (under 500 square feet) are one of the most cost-efficient ways to go. They use less stuff, less land and less labor. And they are great for eco-friendly homeowners.
3. Shipping Container Homes
In various iterations, this type of repurposing has even reached housing, with steel containers being recycled to make stylish modular homes, which offers a sustainable and cost-effective solution. Container homes are not only fast to build, they also ensure structural stability which is why they often make a lot of sense in regions with extreme weather conditions.
4. Prefabricated and Modular Homes
These are, essentially, factory-built homes that are shipped in pieces and put together on site. The savings come from mass production; you save on materials and on labor. Today’s prefab homes can be as spacious, stylish and design-forward as their traditional counterparts.
5. Barndominiums
A fusion of a barn and condominium, these metal-structured homes are gaining popularity in Texas. They’re inexpensive to frame, quickly to erect, and offer vast open spaces for versatile interior design.
Cost Factors That Influence Price per Square Foot
Understanding the cheapest type of house to build is growing in importance. Here are a few of the variables that can contribute to the average cost per square foot:
- Size and Shape: A smaller, rectangular home costs less per square foot than a large, complex one.
- Labor: Simpler designs require less skilled labor, saving on hourly wages.
- Foundation and Roofing: Slab foundations and gable roofs are cheaper than basements and complex rooflines.
- Material Selection: Vinyl siding, laminate countertops, and engineered wood flooring offer budget-friendly yet durable alternatives.
- Location: Building costs vary significantly by region, especially when it comes to land prices and local contractor rates.
Use Our Construction Loan Calculator for Budget Planning
Before deciding on what size and type of house you want to build, it makes sense to run the numbers. Use our Construction Loan Calculator to estimate your monthly payment, total loan amount, and the amount of down payment that will be necessary to finance your construction. It’s a great way to set financial boundaries and keep from overspending during the build.
Where to Buy Land in Texas: Affordable Options
Land cost is a massive part of the overall price of building a house. If you are stuck on the where to buy land in Texas, consider checking out rural and up-and-coming locations such as:
- Bastrop County: Known for affordability and natural beauty.
- Gonzales and Lavaca Counties: Offering larger lots at reasonable prices.
- East Texas: Smaller towns with lower land costs and less competition.
- The Panhandle: Open space, low prices, and a peaceful lifestyle.
Land outside of large cities is cheaper, and you have more to spend on house building and customization.
Partner With the Best Quality Home Builder
That doesn’t mean affordability has to come at the expense of quality. Selecting the best Quality Home Builder keeps your project on budget and total satisfaction in structurally solid, beautifully designed and energy efficient homes! Seek out builders with upfront pricing, references from past clients, and a variety of floor plans that can be adapted to affordable construction.
Top Tips to Keep Construction Costs Low
Keep the Design Simple: A simple configuration with fewer corners and less rooflines (rectangle or square) results in less of a build challenge.
- Simplify the Design: A basic shape (rectangle or square) with minimal corners and rooflines reduces construction complexity.
- Opt for DIY Finishes: Taking on painting, flooring, or landscaping yourself can save thousands.
- Reuse and Recycle Materials: Salvaged wood, recycled glass, or gently used fixtures reduce material expenses.
- Build Up, Not Out: Two-story homes often cost less per square foot than single-story ones, thanks to a smaller foundation and roof.
- Avoid Over-Customization: Stick to standard sizes and layouts where possible to keep labor and material costs down.
Best Texas Home Builders for Budget Projects
The best Texas home builders with a track record of building cost effective homes can be a game changer. Look for a contractor who has experience in the type of ranch homes or modular homes you wish to build and know the regional codes and weather considerations. A veteran Texas builder can help steer you to budget-wise design decisions and keep your project on track for completion.
Consider a VA Construction Loan if you’re a Veteran
A VA Construction Loan provides an affordable alternative to conventional home financing by offering no down payment packages with interest only payments during the building period. Both land and construction, not just loans for affordable building in Texas And they carry with them the VA’s seal of approval, a guarantee that the home meets quality and safety standards.
Final Thoughts
A home doesn’t have to cost a fortune to build. Select the most affordable type of building (for the size home you want) and location, and you’ll get to a personalize home that’s on-budget by planning the costs of the land, material, and labor and use our plans to make smart choices. Leverage planning tools such as our Construction Loan Calculator, search for cost-effective land opportunities and partner with builders with experience in cost-effective build.