Tennessee vs Georgia
Side-by-side construction cost comparison for 2026. Tennessee averages $157/sq ft and Georgia averages $157/sq ft for mid-range builds — so a 2,000 sq ft home in Georgia costs about $0 less.
More affordable for new construction
$157/sq ft vs $157/sq ft — saves $0 on a 2,000 sq ft build
| Metric | Tennessee | Georgia |
|---|---|---|
| 2026 $/sq ft | $157 | $157 |
| 1,500 sq ft | $235,752 | $235,752 |
| 2,000 sq ft | $314,336 | $314,336 |
| 2,500 sq ft | $392,920 | $392,920 |
| Labor Index | 0.86 | 0.85 ✓ |
| Material Index | 0.90 ✓ | 0.91 |
| Avg Permit Cost | $2,000 ✓ | $2,200 |
| Median Home Price | $342,000 | $318,000 ✓ |
| Home Price YoY | +4.8% | +5.8% |
| Climate | Humid subtropical | Humid subtropical |
Tennessee Notes
- ›Low overall costs
- ›Nashville market costs rising rapidly
- ›Moderate foundation requirements
- ›New Madrid Seismic Zone in west TN
Georgia Notes
- ›Red clay soil requires special foundations
- ›Growing market in Atlanta metro
- ›Mild winters reduce heating costs
Tennessee vs Georgia on the underlying numbers
Cost per square foot is a summary. These are the measured inputs behind it, each from a named federal source, so you can see why the two states differ rather than just by how much.
| Measure | Tennessee | Georgia |
|---|---|---|
Mid-range cost per sq ft Construction only, land excluded | $165 | $165 |
Builder-grade per sq ft Same basis, entry-level finishes | $122 | $122 |
Median trade wage BLS OEWS, May 2025 — the largest single driver of the cost gap | $24.29/hr | $23.94/hr |
Electrician BLS OEWS median | $29.37/hr | $28.04/hr |
Land share of property value FHFA WP 19-01 | 21.3% | 20.9% |
Implied land markup on build Share divided by (100 minus share) | 27% | 26% |
Heating degree days NOAA 10-year average, base 65F | 3,458 | 2,495 |
Cooling degree days Drives HVAC sizing and running cost | 1,535 | 1,873 |
Residential energy code U.S. DOE Building Energy Codes Program | 2018 IECC with amendments | 2015 IECC with amendments |
Single-family permits, 2025 Census BPS — how deep each builder market is | 32,068 | 44,351 |
Median new home in region Census Survey of Construction | 2,162 sq ft | 2,162 sq ft |
Wages and land account for most of the gap between any two states. Climate and code set the mechanical and envelope spec, and permit volume tells you how much competition there is for a builder's time — which affects the price you are quoted as much as any line item.
Cost by Home Size
| Size | Tennessee | Georgia | Difference |
|---|---|---|---|
| 500 sq ft | $78,584 | $78,584 | Georgia saves $0 |
| 1,000 sq ft | $157,168 | $157,168 | Georgia saves $0 |
| 1,500 sq ft | $235,752 | $235,752 | Georgia saves $0 |
| 2,000 sq ft | $314,336 | $314,336 | Georgia saves $0 |
| 2,500 sq ft | $392,920 | $392,920 | Georgia saves $0 |
| 3,000 sq ft | $471,504 | $471,504 | Georgia saves $0 |
| 4,000 sq ft | $628,672 | $628,672 | Georgia saves $0 |
| 5,000 sq ft | $785,840 | $785,840 | Georgia saves $0 |
Construction costs: HouseBuildCalc Permit Cost Index (876,000+ building permits, 1,700+ ZIP codes), U.S. Census Bureau Survey of Construction, BLS Producer Price Index, NAHB Cost of Constructing a Home (published summaries). Median home prices: NAR Existing-Home Sales, 2026 estimates. For planning purposes only.