How much does it cost to build a house in Alabama?

Have you found a gorgeous lot for sale (like our Riverview property listing), and now you're considering building a house in Alabama? If so, one of the first questions you’re looking into is, "How much will it cost to build a house in Alabama?" 

There is no one-size-fits-all answer to this question, as the cost of building a house in Alabama can vary depending on many factors. But never fear! We’re Alabama real estate experts, and in this article, we’ll cover the key factors that impact building and a list of the average costs to build a house in Alabama. By the end, you’ll be able to make a more informed decision on whether you can create your dream house on that gorgeous lot!

How Much to Build a House in Alabama: Cost Factors

• Location: Your lot's location can significantly impact the cost of building. If you're building in a rural area, you may need to pay more for things like septic systems, well drilling, and bringing in utilities. Alternatively, if your lot is in a more developed area, you may need to pay more for the land itself.
• Size and Layout: The size and layout of your house will also impact the cost of building. Obviously, the larger the house, the more it will cost to build. More complex structures with multiple stories, custom features, or unusual floorplans can also increase costs. 
• Materials: If you opt for high-end finishes or custom features, you can expect to pay more than if you choose more basic materials. For example, vinyl siding is more affordable (between $6,150 and $15,900 for a 2,000 sq ft house) than brick siding (up to $25,000 for a 2,000 sq ft house). If you’re on a budget but have more expensive tastes, prioritize which features you’d like finished on the higher end and also where you’re okay with a compromise if the budget is stretched. 
• Labor Costs: Labor costs can also vary depending on your location in Alabama. Additionally, the labor cost can increase if you're building a more complex house requiring specialized skills. Speaking of skilled labor: don’t forget that you’ll likely need an architect, draftsperson, and potentially an engineer before you even break ground (building done in Mobile County requires a permit, so you’ll likely need professionally drafted and reviewed blueprints to get one).

Average Cost to Build a House in Alabama

According to Forbes Home, the total average cost to build a house in Alabama is around $267,620 (this number varies depending on the above factors). We’ve included a breakdown of the expenses below (design and construction phases) that you can expect for specific aspects of building a house in Alabama: