The cheapest way to build a house is to build small and simple: a compact rectangular plan with a simple roof, basic finishes, in a lower-cost state, using a stock plan. Factory-built options such as manufactured or modular homes and barndominiums usually cost less again. In our calculator, choosing basic instead of standard finishes alone cuts the estimate by about 18%.
10 ways to cut the cost of building a house
- Build smaller. Cost scales with size: at the US median of $166 per sq ft, every 100 sq ft saved is about $16,600. The median new home was 2,176 sq ft in Q3 2025.
- Keep the shape simple. A rectangle with a simple gable roof uses less material and labor than a plan with many corners and roof lines.
- Choose basic finishes. Interior finishes are the largest cost stage (24.1% in NAHB’s 2024 survey); builder-grade finishes save the most.
- Build in a lower-cost state. State rates range from about $143.50 to $215.50 per sq ft; see the state comparison.
- Go up, not out. A two-story home has a smaller foundation and roof for the same living space.
- Use a stock plan. Stock plans cost $500 to $5,000 versus thousands more for custom design (house plans cost).
- Pick a slab foundation where the climate and site allow (foundation cost).
- Consider factory-built: a manufactured home averaged $129,400 in June 2026 (home only), and modular homes run $80 to $160 per sq ft installed.
- Consider a barndominium at about $65 to $160 per sq ft finished.
- Do some work yourself: painting, landscaping or acting as your own contractor can save money, but adds risk (owner-builder guide).
Cheapest house types compared
| Option | Typical cost |
|---|---|
| Tiny house | $30,000–$60,000 |
| Single-section manufactured home | $82,200 average (May 2026, home only) |
| Double-section manufactured home | $166,600 average (May 2026, home only) |
| Barndominium, 2,000 sq ft | about $160,000–$240,000 standard finish |
| Modular, 2,000 sq ft | $160,000–$320,000 installed |
| Stick-built, 2,000 sq ft | about $332,000 at the US median |
What not to cut
- The contingency: keep 10% for surprises.
- Insulation, windows and air sealing: cheap now, expensive in energy bills later.
- Foundation and drainage: expensive to fix after the fact.
- Permits and inspections: skipping them can block financing, insurance and resale.
More on the building process
- Steps to building a house
- Home building checklist
- How long it takes to build a house
- Build vs buy
- Cheapest way to build a house
- How to choose a home builder
- Being your own general contractor
- What is a spec home?
Sources
- NAHB: Cost of Constructing a Home in 2024 (survey published January 2025)
- NAHB: New single-family home size trends, Q3 2025 (U.S. Census Bureau data)
- Autodesk: How much does it cost to build a house in 2026? (state totals for a 2,000 sq ft home, based on Today’s Homeowner data; the $166/sq ft US median used on this site)
- U.S. Census Bureau via FRED: Average sales price of new manufactured homes (Manufactured Housing Survey)