What is the Average Cost to Build A House In Illinois?

How much does it cost to build a house in Illinois? This is a question that many people ask themselves when they are trying to decide if building or buying a home is the right option for them. The average cost of building a house in Illinois can vary greatly depending on what type of materials you use, the size, and the features.

The average price of a new home in Chicago Illinois is $506,700. A new build on an existing lot can cost anywhere from $120 - $400 per square foot – or even more if you want to add features such as luxurious finishes and expensive materials.

When potential customers hear the average price, sticker shock is common, but if you're considering constructing a new house, it might be well worth the money. Many individuals see that the opportunity to customize their house to reflect their own unique style is simply priceless.

In this blog, we will cover the average cost to build a house in Illinois. We'll go through the various factors to consider when building a home, as well as give you a cost breakdown including how to calculate costs and whether buying or constructing a previously owned property is right for you.

What is the average cost to build a house in Illinois?

The average cost of constructing a middle-of-the-road house in Illinois with typical materials is $351,000. This is according to a study by the National Association of Home Builders, and it also takes into consideration many factors such as labor costs. This cost does not include the land or your own custom design changes. You can find the top Naperville home builders here.

Average Illinois land prices

Land prices in Illinois are relatively low compared to other states. The exact location will greatly affect the cost of the land. Additionally, whether your lot is prepped or not will also influence building costs. Water lines, electrical service, sewer hook-up, and soil testing all come at great expense. Plus, if the lot is not properly graded and cleared, there may be an added expense as well.

If you purchase a recently developed subdivision with water and electrical service, you could save yourself significant money compared to building on an unprepped lot.

The cost of your home will vary greatly if you are in an urban area vs. a rural one. Here is the current average cost of land for Chicago and each of the collar counties:-

Cook County $122,500
DuPage County $215,000
Lake County $100,00
Will County $65,000
Kane County $60,000

Check out all currently available new construction homes in the Chicago suburbs. Tour all available new construction in Chicago collar county by clicking the link above. 


Labor prices account for nearly 40% of the costs. With the current scarcity of labor, rapid growth in labor costs is becoming a bigger concern. Housing is still in strong demand and construction labor cannot keep up. Homebuilders are having to pay more money for workers and they have less choice in who is working on their site.

Labor costs vary greatly from region to region depending on area demand for various trades such as masons or electricians.

The average labor price for a 2,500 square foot in Illinois should cost between $115,000 and $182,000 in labor alone.

Labor costs will vary with materials used, house plan, and location. 


The cost of materials to build a single-family home in Illinois is $145,600.

Materials can account for about 40-45% of the total cost to build your home. Materials include things like insulation, windows, doors, cabinets, roofing shingles, and flooring.

Building supply costs have been on the rise since the start of the pandemic due to supply chain issues, restricted availability of resources, and labor shortages.

Relatively inexpensive labor rates in Illinois – combined with stable material costs – make building a very affordable option compared to other parts of the country, particularly the Northeast or California.

What is the average price per square foot?

The average price per square foot for houses in Illinois is $103 - $162. However, the cost will once again vary based on location. For example, the price range to build a house in the city of Chicago is $300 - $390 for a single-family home. In the second-largest city in Illinois, Aurora, the price per square foot is $135 - $200.

The cost per square foot also varies based on the home style and amenities. For example, a two-story house will average at around $125 - $150 per square foot whereas a ranch-style would be significantly higher per square foot.

How do I estimate the cost of building a house?

If you’re doing your own construction costs estimation, be sure to add at least 20-30% more than what you originally projected to account for changes in the process. If you want a detailed cost estimation, your best bet is to hire an architect or contractor who can give you an accurate quote. This way, they can factor in everything from labor costs and material prices down to landscaping details, if applicable.

Many factors contribute to the total cost of your home, so it is useful to have an idea of what you can expect during construction even before breaking ground. This will give you a good idea as to whether or not you will be able to afford to buy land and construct your new house within your budget.

To estimate your total costs when building a home, you need to add up the price per square foot of all materials and labor required in its construction and then add on an additional 20%-30% for miscellaneous expenses that may arise along the way such as permits and unexpected repairs.

Is it cheaper to build or buy a house?

Should you build your own home or buy a resale house? This is one of the most common questions prospective homeowners ask. Every situation will vary depending on location, land prices, and other factors such as age and size, which can affect both options equally. To determine if you should develop or purchase, you must first figure out what you're searching for, whether any exciting properties match, and how much a new construction would cost.

The cost of building a new construction home can work out the same as buying an existing resale house. The main deciding factor in whether it’s cheaper to buy or build will depend on where you live and how expensive your land is priced. If the land price per square foot for undeveloped land is high, then buying a resale house makes more sense. If the land price per square foot for undeveloped land is low, you’re better off building your own home on your lot.

Bottom line, you'll typically pay more for a new construction property, but you may get more of what you want. If you decide to build a house, you can also lower your expenses by taking on some tasks on yourself. For example, you can save a lot on your drywall and interior finishing installation costs if you install it yourself. This is an important factor to keep in mind, as the cost of materials for construction and labor continues to rise and many people are looking into more affordable options for home building or renovation projects.

Inexpensive labor rates combined with low material prices make building your own home a great option if you are willing to take on the task. However, you’ll need to carefully consider whether or not it is worth sacrificing your free time in order to save money during construction.

How to save when building your own home?

Be an owner-builder: If you are going to build a house yourself, this is the way to save thousands. Being an owner-builder will allow you to hire your own contractors and subcontractors, which lowers costs significantly compared to hiring general contractors that would be involved with multiple tradesmen at different times of construction.

Inspections: Make sure all inspections are completed properly to avoid further costs and delays. Keeping a close eye on construction and process will help you avoid costly mistakes that can lead to thousands of dollars in repairs. If you decide to build and be an owner-builder, you must be diligent and keep a close eye on the project. 

Warranties: Get your warranties in place to protect yourself against any unforeseen circumstances that may arise during the construction process.

Permits: If you don’t obtain building permits but get caught by an inspector – or someone else alerts city officials of unapproved work – you will have to pay a fine. Construction delays are often the difference between a profitable build and one that is not. Obtaining all the permits beforehand will help you complete a successful home build.  

Purchasing materials: If you are planning on building your own home, make sure you purchase all materials from the same place, as this will allow for extra savings. When using multiple suppliers, there is no guarantee they’ll be able to offer discounted prices, unlike a bulk buy from a single supplier.

Do it yourself: There are many tasks that can be performed by yourself during construction to save on costs such as drywall and interior finishing installation. This is a great way to lower expenses, but you will need to carefully consider whether or not it is worth sacrificing your free time in order to do so.

If you decide building your own home makes sense for you, you can get a home construction loan to finance the project.


If you are considering building your own home, there are many things to consider. You'll need to decide if it's worth sacrificing time to save on costs and determine how much money you're willing to invest upfront by taking out a loan.

If this sounds like something that may interest you or any of the other topics we've covered here today, feel free to reach out for more information! Our team is always available via phone (630) 534-9357 or by email. We look forward to hearing from you soon!

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Posted by Rafael Velasco on


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