How to Build a House – Step-by-Step (With Costs)

From planning to move-in day, understand every phase of home construction. Learn what happens, how long it takes, and what each stage costs.

Building a home is a complex process involving dozens of decisions, multiple contractors, and careful coordination. Understanding the sequence of events helps you stay informed, make timely decisions, and anticipate costs. This guide walks through each major phase from initial planning through final walkthrough.

📅 Typical Timeline Overview

Pre-Construction: 2-4 months (design, permits, financing)
Construction: 8-12 months for standard homes, 12-18 months for custom
Total: 10-16 months from decision to move-in

The Building Process Timeline

Phase 1: Planning & Design

4-8 weeks • 3-5% of budget

Everything begins with planning. This phase establishes what you'll build, where, and how much you can spend.

Key Activities:

  • Define your needs: Number of bedrooms, bathrooms, lifestyle requirements, must-haves vs. nice-to-haves
  • Establish budget: Determine total available funds including land, construction, contingency, and closing costs
  • Select/purchase land: Consider location, lot characteristics, utility access, and building restrictions
  • Choose a builder: Research, interview, check references, compare bids from at least three builders
  • Finalize plans: Select or customize house plans, review with builder for cost implications

Typical Costs: Architectural plans ($2,000-$15,000+), surveys ($500-$2,000), soil testing ($500-$1,500), initial builder consultations (often free)

Phase 2: Permits & Approvals

2-8 weeks • 1-3% of budget

Before construction begins, you need official approval. Permit timelines vary dramatically by jurisdiction—from days in some areas to months in others.

Required Permits Typically Include:

  • Building permit: The master permit covering structural construction
  • Electrical permit: For all electrical work
  • Plumbing permit: For water supply and drainage systems
  • Mechanical permit: For HVAC systems
  • Grading/excavation permit: For site preparation work
  • Specialty permits: Septic, well, environmental (if applicable)

Typical Costs: Permit fees range from $2,000-$10,000+ depending on location and home size. Impact fees in some areas add $5,000-$30,000.

Phase 3: Site Preparation

1-2 weeks • 3-5% of budget

With permits in hand, work begins on transforming raw land into a building site.

Work Performed:

  • Clearing: Remove trees, brush, and debris from building area
  • Grading: Level the site, establish drainage patterns
  • Utility rough-in: Bring water, sewer, electric, gas to the site
  • Staking: Mark exact building location and corners
  • Access: Create temporary construction entrance

Typical Costs: $8,000-$25,000 for straightforward sites. Complex sites with significant clearing, rock, poor drainage, or steep slopes can cost $25,000-$75,000+.

Phase 4: Foundation

2-4 weeks • 8-12% of budget

The foundation is literally what your home stands on. This critical phase requires careful execution and inspection.

Foundation Types & Process:

  • Slab-on-grade: Most economical. Excavate, form, pour concrete directly on ground.
  • Crawl space: Short walls create space under first floor. Provides access to utilities.
  • Full basement: Most expensive but adds valuable square footage.

Process includes excavation, footings, foundation walls, waterproofing (if below grade), and backfilling. Multiple inspections occur throughout.

Typical Costs: Slab: $10,000-$25,000 | Crawl space: $15,000-$35,000 | Basement: $30,000-$75,000+

Phase 5: Framing

3-6 weeks • 12-18% of budget

Framing transforms a foundation into a recognizable house structure. This is when your home takes shape.

Framing Components:

  • Floor system: Joists, subfloor (if not slab)
  • Wall framing: Studs, headers, plates—both exterior and interior walls
  • Roof framing: Rafters or trusses, sheathing
  • Sheathing: Plywood or OSB covering walls and roof
  • Windows and exterior doors: Installed during or after sheathing

A framing inspection verifies structural integrity before walls are closed.

Typical Costs: $30,000-$60,000 for a 2,500 sq ft home. Complex designs with multiple rooflines, tall ceilings, or custom features cost more.

Phase 6: Roofing

1-2 weeks • 3-5% of budget

Once the roof is framed and sheathed, roofing materials go on. Getting the house "dried in" allows interior work to proceed regardless of weather.

Roofing Options:

  • Asphalt shingles: Most common, 20-30 year lifespan, $3-5/sq ft installed
  • Metal roofing: Durable (50+ years), energy efficient, $8-14/sq ft
  • Clay/concrete tile: Long-lasting, distinctive look, $12-25/sq ft
  • Slate: Premium, 100+ year lifespan, $20-40/sq ft

Typical Costs: $8,000-$15,000 for asphalt on a typical home. Premium materials can exceed $30,000-$50,000.

Phase 7: Electrical, Plumbing, HVAC Rough-In

2-4 weeks • 12-18% of budget

While walls are still open, mechanical systems are installed. This is your last chance to modify locations before walls close.

Systems Installed:

  • Electrical: Service panel, wiring to all outlets, switches, and fixtures
  • Plumbing: Supply lines, drain lines, vent stacks, water heater location
  • HVAC: Ductwork, furnace/air handler location, refrigerant lines
  • Low voltage: Cable, internet, security, speaker wiring

Each system requires inspection before walls close. This is a critical checkpoint.

Typical Costs: Electrical: $8,000-$15,000 | Plumbing: $10,000-$20,000 | HVAC: $8,000-$20,000

Phase 8: Insulation & Drywall

2-4 weeks • 5-8% of budget

After systems are installed and inspected, insulation goes in followed by drywall. This closes up the walls and creates the interior surfaces.

Process:

  • Insulation: Fiberglass batts, blown-in, or spray foam in walls, ceilings, and floors over unconditioned space
  • Drywall hanging: Sheets attached to studs and ceiling joists
  • Drywall finishing: Taping joints, mudding, sanding—typically three coats
  • Texture (if desired): Various texture patterns applied

Typical Costs: Insulation: $3,000-$8,000 | Drywall: $8,000-$20,000 (depends heavily on home size and ceiling heights)

Phase 9: Interior Finishing

6-10 weeks • 25-35% of budget

The longest and most variable phase. Your finish selections dramatically impact both cost and timeline.

Work Includes:

  • Painting: Primer and paint on all surfaces
  • Flooring: Hardwood, tile, carpet, vinyl installation
  • Cabinets: Kitchen, bathroom, and other built-in cabinetry
  • Countertops: Fabrication and installation
  • Trim work: Baseboards, door casings, crown molding
  • Interior doors: Hung and hardware installed
  • Fixture installation: Lights, outlets, switches, plumbing fixtures
  • Appliances: Kitchen and laundry appliance installation

Typical Costs: This varies enormously based on selections. Budget $40-$80 per square foot for mid-range finishes; $80-$150+ for premium finishes.

Phase 10: Exterior Finishing

2-4 weeks • 8-12% of budget

Exterior work often overlaps with interior finishing. Weather-sensitive tasks are scheduled opportunistically.

Work Includes:

  • Siding: Vinyl, fiber cement, wood, brick, or stone
  • Exterior trim: Fascia, soffit, corner boards
  • Painting/staining: Exterior surfaces
  • Gutters: Installation and downspout routing
  • Concrete flatwork: Driveway, walkways, patio
  • Decks/porches: Construction and finishing

Typical Costs: Siding: $10,000-$30,000 | Driveway: $3,000-$10,000 | Deck: $5,000-$25,000

Phase 11: Final Inspections & Closing

1-2 weeks • Minimal direct cost

The final stretch involves inspections, corrections, and preparations for occupancy.

Final Steps:

  • Final inspections: Building, electrical, plumbing, mechanical
  • Punch list: Walk-through to identify items needing correction
  • Corrections: Builder addresses punch list items
  • Certificate of Occupancy: Official approval to occupy the home
  • Final walkthrough: Verify all work complete and systems functional
  • Closing: Final payment, transfer of ownership

Don't rush this phase. A thorough punch list and proper corrections protect your investment.

Construction Phase Cost Summary

Phase Duration % of Budget Typical Cost (2,500 sq ft)
Planning & Design 4-8 weeks 3-5% $10,000 - $20,000
Permits 2-8 weeks 1-3% $5,000 - $15,000
Site Prep 1-2 weeks 3-5% $10,000 - $25,000
Foundation 2-4 weeks 8-12% $25,000 - $50,000
Framing 3-6 weeks 12-18% $40,000 - $70,000
Roofing 1-2 weeks 3-5% $10,000 - $20,000
Systems Rough-In 2-4 weeks 12-18% $40,000 - $70,000
Insulation & Drywall 2-4 weeks 5-8% $15,000 - $30,000
Interior Finishing 6-10 weeks 25-35% $80,000 - $140,000
Exterior Finishing 2-4 weeks 8-12% $25,000 - $50,000

Costs shown are estimates for mid-range construction in average-cost regions. Your costs will vary based on location, specifications, and market conditions.

Frequently Asked Questions

Typical new construction takes 8-12 months from groundbreaking to move-in for a standard production home. Custom homes with unique features can take 12-18 months. Add 2-4 months for pre-construction planning, design finalization, and permitting. Total time from initial decision to move-in typically runs 10-16 months for standard builds, longer for complex custom homes.

Required permits typically include: building permit (master permit for the structure), electrical permit, plumbing permit, mechanical/HVAC permit, and grading permit. Depending on your location and site, you may also need septic system permit, well permit, driveway permit, and various environmental permits. Your builder typically handles permit applications but you should understand what's required and the associated costs.

Interior finishes typically represent the most expensive single phase at 25-35% of total construction cost. This includes flooring, cabinets, countertops, trim, doors, lighting fixtures, plumbing fixtures, and paint. Kitchen and bathroom finishes alone often account for 15-20% of total budget. This is also the phase where your choices most directly impact final cost—the same house can vary by $50,000-$100,000 based on finish selections.

Yes, many jurisdictions allow owner-builders to act as their own general contractor, potentially saving 15-25% in GC fees. However, this requires significant time commitment (often 20+ hours per week during construction), construction knowledge, management skills, and tolerance for stress. You'll need to schedule subcontractors, coordinate inspections, manage materials, and solve problems. Mistakes can be costly in both money and time. Consider your experience, available time, and risk tolerance carefully.

Major decisions follow a general timeline: Before construction—floor plan, exterior materials, major fixtures. During framing—window placement, outlet locations, built-in locations. Before drywall—all electrical, plumbing, and HVAC decisions must be final. Before finishes—cabinet style, countertops, flooring, paint colors, lighting fixtures, plumbing fixtures. Making decisions early avoids costly change orders and delays. Many builders provide selection timelines—follow them closely.

Expect a rollercoaster of emotions. Early phases show dramatic progress—foundation and framing happen quickly. Then progress seems to slow during systems installation and finishing. Weather delays, material shortages, and scheduling conflicts are normal. Communication with your builder is essential. Plan for regular site visits but avoid being disruptive. Keep a running list of questions rather than interrupting workers. Budget extra time and money for the unexpected—something always comes up.

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Use our free calculator to estimate costs for your specific project, or explore our detailed cost guide for more information.

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