How Much Does it Cost to Build a New House from Scratch in Oregon?

Building a house in Oregon can be an exciting and rewarding endeavor. However, it’s essential to understand the costs involved to make informed decisions. In this comprehensive guide, we’ll delve into the various expenses associated with building a house in Oregon, including material costs, contractor fees, permit costs, and more.

Average Cost to Build a House in Oregon

On average, it costs $170 per square foot to build a house in Oregon. This figure includes the cost of construction materials, labor, and other related expenses. However, it’s crucial to note that the total cost can vary based on several factors, such as the type of property, square footage, customizations, and location.

Additional Expenses to Consider

Aside from the base construction cost, there are other additional expenses you need to bear in mind when building a house in Oregon:

  • Construction Time: Typically, it takes around 9 months to build a house. However, if you choose to manage the construction yourself (DIY), the timeline can extend up to 12 months. To save time and money, you may consider browsing and buying homes for sale instead.
  • Permit Fees: You will need permits to build your house, and the fees can vary based on the home value or construction area. Permit laws also vary across counties in Oregon, so it’s advisable to refer to your local county’s website or office for specific information.

Is It Cheaper to Build or Buy a House in Oregon?

While building a house allows for customization, it’s generally more affordable to buy a home for sale in Oregon and move in quickly. The average cost per square foot to build a house in Oregon is $170, excluding land costs, permit fees, excavations, and other expenses. On the other hand, you can buy a home in Oregon for $490,224 (median sale price as of September 2023) in 1.5 to 2 months.

Cost Breakdown of Building a House in Oregon

Hard Costs

Hard costs are direct expenses involved in the home-building process. Here’s a breakdown for a 2,500 sq. ft. house in Oregon:

  • Material Cost: Approximately $147,500, accounting for 50% of the overall construction prices.
  • Contractor Charges: Typically 10% to 20% of the total construction value, covering various professionals involved in the process.
  • Electrical Costs: $7,500 to $12,500, including rough-in and finishing work.
  • Roof Installation Costs: $3,500 to $39,700, depending on the material and size of the roof.
  • Plumbing Costs: Around $12,000, including installing plumbing fixtures and laying sewage lines.
  • HVAC Installation Costs: $12,500, but can vary based on factors like cooling area and system type.

Soft Costs

Soft costs are indirect expenses related to the building process. These include land costs, permit costs, design costs, and more. For example:

  • Land Costs: Around $19,200 per acre, including land purchase and preparation costs.
  • Oregon Home Building Permit Costs: Approximately $5,000, varying per county and based on construction type and project scope.
  • Home Interiors: Budget at least $20,000 for interior furnishings.
  • Home Interior Designer Costs: Around $5,400, depending on your requirements.

Financing Options for Building a House in Oregon

There are several financing options available for building a house in Oregon, including:

  • Home Construction Loans: Cover both land purchases and home-building costs.
  • Personal Loan: Can finance specific parts of the construction.
  • Home Equity Loan: Utilized by homeowners who want to finance new construction based on existing home equity.
Building Your Dream Home in Oregon

Building a house in Oregon can be a rewarding experience, but it’s essential to understand the costs involved. By considering all the expenses and financing options available, you can make informed decisions and create the home of your dreams in the beautiful state of Oregon.

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