Budgeting for New Home Construction

Budgeting for New Home Construction

What’s the cost breakdown of a new construction home? Let’s take a look.

A new construction home gives you a fresh start with new materials and the latest technology in energy efficiency. It is a chance to live in a high-quality house in a high-quality location. If you work with a custom home builder, you can customize the floor plan and style to your liking as well. Of course, building a home comes with a cost. What is involved with budgeting for new home construction? At Shore-Line Construction, we can help walk you through it.

Is New Home Construction More Expensive Than Buying a House?

A new construction home can be more expensive than an existing property. Is it out of reach, however? According to Houzeo, the average cost to build a home in Maryland is between $450,000 and $600,000 as of 2022, while the average cost of a house was $386,500. However, you must consider that these prices can vary based on the property location, type, and size, so it is possible to build a house that is cheaper than an existing home for sale. What’s important is that you can build a house within your budget.

Average Costs of Building a Home

How exactly does budgeting new home construction work, then? You can break down the costs into these categories below.

Hard Costs

The hard costs relate directly to home-building.

  • Materials
  • Labor
  • Roofing
  • Electrical
  • Plumbing
  • HVAC

Soft Costs

The soft costs deal with the following:

  • Land
  • Building Permit (required in Maryland)
  • Home interior (carpeting, wall paint, furniture, etc.)

What About Building on the Waterfront?

As mentioned, the property location, type, and size affect the pricing. If you live on the waterfront, you might be directly on the waterfront, have water access, or have a water view. Your house could also be on a narrow lot or a larger piece of land. You have more options that could fall in your price range than you might think!

Expenses of Owning a Home

In addition to a new construction home mortgage, you also have to account for the long-term expenses of owning a home. You can learn more about this subject here

Working with Shore-Line Construction

Shore-Line Construction helps evaluate your Maryland custom home financing from the start. If you would love to build a waterfront home, contact us!


At Shore-Line Construction, we know that your home is a reflection of you. That’s why we strive to make each home we build as beautiful as the family who will live there. We work with each of our clients to design a home that fits their needs. The end result is a durable, energy-efficient custom home that the family will enjoy for generations to come. Shore-Line Construction has been serving our customers for over 25 years, and we look forward to the opportunity to help you!

If you’re interested in learning more about what Shore-Line Construction can do for you, check out our website or give us a call at 410-574-6623. Keep up with all of the latest news by following our blog and social media pages on Facebook, YouTube, Pinterest, and Houzz!

This entry was posted on Tuesday, May 16th, 2023 at 4:34 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.