How much does it cost to build a house in Indiana?

Reviewed by Adam Graham remodeling expert. Written by Fixr.com.

Indiana is a great place to live for many reasons. The state has a diverse economy with plenty of job opportunities and ranks highly for business friendliness and affordability. It is also a great place to raise a family, with top-rated schools and low crime rates. The cost of living in Indiana is also relatively low compared to other states. Additionally, Indiana offers a variety of housing options, from apartments and condos to single-family homes and rural farmhouses. Those who enjoy being outdoors can take advantage of the state's numerous parks and trails. Those who prefer a more urban lifestyle can enjoy the many cultural attractions that Indianapolis offers.

The national average cost to build a home in Indiana is $188,000 to $300,000. Most people pay around $225,000 to build a two-story, 1,800 sq.ft. stick-built ranch home. At the low end of the spectrum, building an 800 sq.ft. modular bungalow home in a rural area costs $72,000. At the high end, you can pay up to $850,000 to build a custom-made 5,000 sq.ft. log cabin home with professional interior design and luxury features in Indianapolis.

Cost to Build a House in Indiana

Average Cost to Build a House in Indiana by Type

Building a modular home in Indiana costs $90 to $120 per sq.ft. Stick-built homes cost $110 to $150 per sq.ft. to build. They are the two most common home types in Indiana. However, stick-built homes are more common due to the severe weather conditions the state experiences. If you are building a house in Indiana on a budget, modular homes are often more affordable than traditional stick-built homes. They are built in a factory, so they can often be shipped to your building site for less money than it would cost to have all the materials delivered separately. However, modular homes often come in limited design options and sizes. If you want to customize your home in Indiana, a stick-built home is the better option. Stick-built homes are constructed on-site, which means all materials are brought to the construction area. Below is a table with the expected costs to build a house in Indiana.

Cost per Square Foot to Build a House in Indiana

Depending on its size, the cost to build a home in Indiana ranges from $72,000 to $750,000. The size of the house is one of the most important factors in determining its price. Generally speaking, the larger the home, the more it will cost to build. A larger home requires more building time, materials, and labor. It also takes up more valuable land. Most homes in Indiana are about 1,800 sq.ft. in size, which is enough to accommodate three or four bedrooms. The table below shows the most common house sizes in Indiana and the cost to build them as modular versus stick-built.

Average Cost to Build a Home in Indiana by Number of Bedrooms

Building a home in Indiana costs between $72,000 and $525,000, depending on the number of rooms. The number of rooms in a home significantly impacts the price of building it. The more rooms there are, the more expensive it will be to construct the walls, ceiling, and floors. In addition, each room requires doors, windows, and other fixtures. However, the layout of the house also impacts the cost of materials and labor. A home with a traditional layout and separate rooms for each activity will be more expensive to build than a more open concept design. Typically, homes in Indiana have three bedrooms. Below is a table with the cost of building a house in Indiana based on the number of bedrooms.

Cost to Build a Home in Indiana by Number of Stories

Depending on the number of stories, building a one-story modular home in Indiana can cost just $162,000, while building a three-story stick-built house in Indiana costs up to $342,000. The taller the house, the more it costs to build because taller houses require more materials and labor. Taller houses need more roofing material to cover the larger area. They also require additional support beams to keep the structure stable. In addition, because tall houses are more difficult to build, they often require more advanced machinery and equipment and higher wages for the workers involved in the construction. Here are the expected costs to build an 1,800 sq.ft. house in Indiana based on the number of stories.

Cost of Building a Home in Indiana by Style

The cost of building a house in Indiana is affected by many factors, including the architectural style. Prices range from $18,000 to $450,000 for modular homes and $34,000 to $800,000 for stick-built houses. Some home styles require fewer materials and labor to construct and often have fewer features like elaborate moldings and detailed trim work. As a result, they can be built relatively quickly and are typically less expensive than more elaborate styles. Of course, the final cost of a home also depends on the size and location of the property and the quality of materials and craftsmanship used in its construction.

The most common home style in Indiana is a ranch house. These are typically one-story homes with a symmetrical layout and an attached garage. Other styles are also popular, including the unique shotgun shack style that is not as common in other states. Shotgun shack homes are typically one room wide and several rooms deep, with doors at either end of the structure. Shotgun shacks got their name from the fact that if all the doors were open, a shotgun blast could travel from one end of the house to the other without hitting a wall. Popular house styles in Indiana and the cost to build them as modular or stick-built are presented in the table below.

Home Building Cost Breakdown (Indiana)

Each step of the construction process in Indiana costs between $4,000 and $90,000. The cost of building a house in Indiana depends on many factors, including the size and location of the home, the materials used, and the cost of labor. The price of land is also a significant factor because some areas are more popular than others. In addition, local building codes and regulations impact the construction price because compliance with these standards adds to the overall cost.

Before starting the construction, the area needs to be prepared for construction. This involves removing any trees, shrubs, or obstacles from it before starting to dig holes for the foundation. When the foundation is set, the contractor builds the framing and adds the exterior elements to the house, including the roofing. After the roof is complete, the contractor works on the major systems: electrical, heating, air, and plumbing. Finally, the interior elements will be completed, after which you can start organizing the rooms and elements. Once the house is complete, it must pass a final inspection before it can be occupied. Here is how much you can expect to spend on each step of the process.

Labor Cost to Build a House in Indiana

The average cost to build a home in Indiana is $225,000 for an 1,800 sq.ft. stick-built ranch home. Of this, about 40% comprises labor, which translates to $50 per sq.ft., or $90,000 of the total construction price. Before construction starts, a lot of professional planning goes into building a house. First, an architect designs the basic structure of the house, which must then be approved by a building inspector to ensure it meets all safety codes. Once they are approved, the contractor who will construct the house must be hired along with electricians, plumbers, carpenters, masons, and other professionals needed to build the house. Once construction begins, these workers are on site every day until the job is completed. The table below shows the professionals that construct the home and the cost of hiring each of them.

Average Price to Build a House in Indiana by Location

The cost of building a house in Indiana varies greatly depending on location, with prices ranging from $180,000 to $600,000. The closer to Indianapolis, the more expensive the land will be. However, some areas of the state are more rural and remote, which can drive up the cost of construction. For example, home builders in Bloomington, Indiana, and home builders in Lafayette, Indiana, may charge more than other parts of Indiana due to the higher cost of materials and labor. The table below presents the cost of building a house in Indiana’s most popular cities.

How Much Are Building Permits in Indiana?

In the state of Indiana, most building projects require a permit from the local government. The cost of permits in Indiana is $217 for buildings up to 1,000 sq.ft. For every 500 sq.ft. over 1,000 sq.ft., an additional $23 permit fee is applied. In addition to the regular permit fee, a processing fee of $85 plus $21 for every 500 sq.ft. over 1,000 sq.ft. will also be applied. Considering the average house size in Indiana is 1,800 sq.ft., the permit fees will be $240 base permit fee and $96 processing fee, for a total of $336 for the building permit.

Permits are needed regardless of whether you plan to build a new home, add an addition to your existing property, or make any major change to your property. Building permits and zoning permits are essential for ensuring that all construction projects in Indiana are safe and up to code. In most cases, you will need to submit three sets of construction plans to the local building department. They will review these plans to make sure that they meet all the necessary requirements. Once your plans are approved, you will be able to obtain a permit and begin construction. You may also need to obtain a zoning permit from your local government. Zoning permits are required for any construction projects involving changes to how your property is zoned. For example, if you want to build a new home on a piece of land that is currently zoned for commercial use, you will need to obtain a zoning permit before starting construction. The building department in Indiana has 20 business days to issue the permit, but it usually takes fewer.

Building vs Buying a House in Indiana

Building a home in Indiana costs $188,000 to $300,000, while the average price of buying a home in Indiana is $225,000 to $350,000. When it comes to finding a home, there are pros and cons to both building and buying an existing home in Indiana. One of the main benefits of building a home is that you have the opportunity to customize the house to your specific needs and taste. You can choose the layout, finishes, and fixtures you want and do not have to settle for someone else’s choices. Building a home also comes with some significant challenges. It can be very time-consuming and stressful. There are often unforeseen delays and cost overruns. Additionally, it can be difficult to find a good contractor who will build your home exactly how you want it.

In contrast, if you purchase an existing home, you may not have as much control over the finishes and fixtures, but the process is usually much simpler and less stressful. And if you buy an older home, you may also have the opportunity to renovate it to your own taste for a lower price than building it from scratch. Either way, there are pros and cons to both building and buying a house in Indiana, so it is important to weigh your options carefully before deciding.

Enhancement and Improvement Costs

Interior Designer

Hiring an interior designer in Indiana costs between $50 and $450 per hour. There are many reasons to hire an interior designer, but the most important one is that they can save you time and money. A good designer has a keen eye for detail and can suggest ways to improve the flow of your space and point out things that you may not have considered. In addition, they can help you to avoid making costly mistakes by guiding you on everything from color schemes to layout. Ultimately, an interior designer can make designing your home much easier and more efficient.

Additional Considerations and Costs

• Shipping container homes. For those looking to stay on a budget, building a shipping container home in Indiana is an option. This typically comes at the cost of $15,000 to $45,000. This price varies depending on the size and features of the home.
• Demo fees. If you need to demolish an old construction before building a house in Indiana, expect to spend between $3 and $5 per sq.ft. for the demo fees.
• Inspection. After completing the construction of the home, it must pass inspections to ensure all safety and building codes are followed correctly. This costs between $350 and $425, depending on the size of the home. The inspector looks at the foundation, roof, walls, ceilings, floors, doors, windows, wiring, insulation, heating and cooling systems, and drainage.
• Contingencies. Consider adding 5% to 15% to your construction budget for unpredicted costs such as delays in work, an increase in the prices of building materials, or personal reasons like modification of the scope of work or design of the home.
• Material shortages. Due to the unpredictability of the supply chain caused by the pandemic and political instabilities in certain countries, some materials are facing serious shortages. To prevent any delays in construction, make sure that there is a sufficient supply of the materials you will need.
• Buy land. Since there is plenty of room available in Indiana, you can easily find a piece of land on which to build a house. Residential land ranges from $16,000 to $35,000 per acre, depending on where you want to construct a home. Areas closer to Indianapolis are more expensive, while rural parts have lower land prices.
• Insurance. You may need to get homeowner’s insurance before moving into your home in Indiana. This typically costs $1,180 to $1,800 per year.
• Warranties. Indiana has two types of home construction warranties: implied warranties and express warranties. An implied warranty is determined by the law and applies automatically to all newly constructed homes. An express warranty is a different type of warranty that the builder gives to the homeowner. The content of the express warranty is typically outlined in the construction agreement.