How Much Does It Cost to Build a Small House?

By the Home Building Cost Calculator team · Updated November 2026

A small house of 600 to 1,000 sq ft costs about $100,000 to $166,000 to build at the US median rate in 2026, or $86,000 to $215,000 depending on the state. Small homes cost more per square foot than larger ones, because kitchens, bathrooms and systems cost nearly the same at any size.

How much does a small house cost by size?

SizeTypical layoutLow-cost state ($143.50)US median ($166)High-cost state ($215.50)
600 sq ftStudio or 1 bed, 1 bath$86,100$99,600$129,300
800 sq ft1–2 bed, 1 bath$114,800$132,800$172,400
1,000 sq ft2 bed, 1–2 bath$143,500$166,000$215,500
1,200 sq ft2–3 bed, 2 bath$172,200$199,200$258,600

For a 1,200 sq ft home see the 1,200 sq ft guide. Under about 400 sq ft is usually a tiny house.

How much does it cost to build a 2 bedroom house?

A 2 bedroom house is usually 800 to 1,100 sq ft and costs about $133,000 to $183,000 at the median rate, before land and permits.

Why do small houses cost more per square foot?

A small house still needs a full kitchen, at least one bathroom, a water heater, an electrical panel, HVAC and the same permits and inspections as a large one. In NAHB’s 2024 survey, cabinets and countertops alone averaged $19,056 and permit fees $7,640. On a 700 sq ft home those fixed costs add far more per square foot than on a 2,500 sq ft home. Expect the upper half of your state’s range.

What are the cheapest ways to build a small house?

  • Modular or prefab: factory-built sections reduce labor. See modular home costs.
  • Barndominium shell: a steel building with a finished interior. See barndominium costs.
  • ADU on land you own: no land purchase. See ADU costs.
  • Simple shape: one rectangle, a gable roof and no basement.

Can you get a mortgage for a small house?

Yes. A permanent, code-compliant small house on a foundation qualifies for a normal construction loan and mortgage, unlike most tiny houses on wheels.

Frequently asked questions

How much does a 1,000 sq ft house cost to build?

About $166,000 at the US median rate, or $143,500 to $215,500 by state, before land and permits.

How much does an 800 sq ft house cost to build?

About $133,000 at the median rate, or $115,000 to $172,000 by state.

Sources