Cost to Build a House in Dallas

Custom homes can be built to your precise specifications, enabling you to create the perfect space. If you tell friends you’re building a home, they may assume it’s taking form in a suburban development or rural plot, but that’s not always the case. If you yearn for a custom build rather than settling for what you see in current real estate listings, you can make it happen even in the heart of a big city like Dallas. 

When it comes to your budget, the size, style, and luxury level of finishes and fixtures are all key variables, but let’s start with the average cost to build a house in Dallas per square foot.

Key Expenses in Building a Home in Dallas

Your expenses will include the cost of land, labor, materials, and fees such as those for permits and taxes.

Land Acquisition 

Keep in mind that the land itself is not included in the cost of building a house in Dallas, so keep land costs separate from the home build budget. 

Dallas hosts a huge range of prices for plots that can be developed into homesites. Recent listings within 15 minutes to downtown Dallas ran the gamut from¹:

• $11,000 for 0.03 acres situated at the core of Roosevelt Park
• $347,000 for 5 acres in the Ledbetter Hills neighborhood
• $2.395 million for 0.63 acres overlooking the Santa Fe Trail in the Lakewood area

For site prep, budget around²:

• $400 – $1,800 for a land survey marking the foundation, utilities, and property edges
• $1,500 – $10,000 for excavation
• $30,000 or more for issues like demolition, bedrock, contaminant clean–up, etc.

Materials and Cost of Construction Labor

The actual house building process is primarily reliant on labor and materials, with about 30 – 50% of the total cost attributed to labor.³ Materials typically include²:

• Concrete slab or pier and beam foundation materials
• Framing materials
• Roof: shingles, slate, tiles, etc.
• Exterior surfaces: Brick, stone, stucco, or vinyl siding
• Electrical wiring
• HVAC system and ductwork
• Plumbing pipes, lines, connections, and vents
• Sinks, bathtubs, toilets
• Cabinets and countertops 
• Lighting fixtures 
• Flooring: carpeting, hardwood, tile, etc. 
• Drywall, paint, wallpaper, moldings
• Appliances: refrigerator, dishwasher, range, microwave, washer, dryer, etc.

The cost to build your new home will depend on multiple variables including the size and style. In Dallas, builds average²:

• Basic – The square foot cost is $140 – $220 for a basic, builder-grade dwelling, which averages a total cost of $280,000 – $440,00 for a 2,000 SF home. 

• Custom — Each square foot costs $250 – $300+ for a customized home with luxury fittings, averaging a total spend of $625,000 – $900,000 for a 2,500 – 3,000 SF house.

Permits and Fees

The cost of building a house Dallas officials will allow means securing the correct permissions. Plan on spending $1,500 – $6,000 to cover²:

• Building permit
• HVAC permit
• Plumbing permit
• Electrical permit

Common Additional Expenses for New Construction Homes

Whether building on a large lot or a smaller site, costs can fluctuate. If you’re planning to end up with a multi-acre estate that has its own fancy name, there’s no ceiling on what you can add to the budget. For most of us, however, these are common additions to consider: 

• Landscaping and outdoor spaces
• Pool
• Specialty interior finishes 
• Customized design elements
• Unexpected contingency costs

How to Estimate and Manage Construction Costs

Planning a new build is a big job, so don’t try to do it overnight or by yourself. Careful planning is essential to keep everything within budget. The preparation time before construction begins takes an average of 1.3 months, followed by nearly 14 months of construction for most owner-built homes.⁴

Focus on these key steps and priorities: 

• Work with a trusted contractor
• Create a detailed budget and timeline including dependencies
• Secure financing for construction
• Plan the parallel steps of a current home sale plus interim housing if needed

Truehold’s Financial Solutions for Dallas Homebuilders

Building a new home isn’t a cut-and-dried process—you can encounter delays and unexpected costs that significantly impact your anticipated timeline and budget. For most families, it also comes with the wrench of a current home sale thrown into the mix, which can bring more delays and uncertainties. 

A traditional listing sale can take months of property upgrades, cleaning, and staging even before waiting for an offer to come in, plus the need to find somewhere to stay if the sale of your current home closes before the new one is move-in ready. 

With Truehold’s sell and stay transaction, you can skip ahead to a closing at your convenience that brings together two steps: a sale and a lease. With this option, you sell your home to us for cash and can continue living there as a renter.* You have access to your current home equity plus you’re free from homeowners insurance, property tax, and essential repairs. 

This type of transaction is ideal for homeowners who want to devote their funds and attention to a new home build without having to find temporary housing or struggle to coordinate multiple timelines. Call us today and a representative will reach out to discuss whether Truehold's Dallas sell and stay option is the best bridge to moving into your newly built home.

Disclaimer*: After the home sale, you must comply with the terms of your lease to continue living in the home. This includes making timely payments on your rent for your minimum lease term (which ranges from 6 – 24 months).

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Sources: 

1. LandWatch. Dallas, TX Homesites for Sale up to 1 Acres. https://www.landwatch.com/texas-land-for-sale/dallas/homesites/acres-under-1‍
2. HomeGuide. How much does it cost to build a house in Texas? https://homeguide.com/costs/cost-to-build-a-house-in-texas‍
3. Bankrate. How much does it cost to build a house? https://www.bankrate.com/real-estate/cost-to-build-house
4. ‍Angi. How Long Does It Take to Build a House From Start to Finish? https://www.angi.com/articles/how-long-does-it-take-build-house.htm