Tennessee vs Kentucky
Side-by-side construction cost comparison for 2026. Building a 2,000 sq ft home in Kentucky saves approximately $18,000.
More affordable for new construction
Kentucky
$156/sq ft vs $165/sq ft — saves $18,000 on a 2,000 sq ft build
| Metric | Tennessee | Kentucky |
|---|---|---|
| 2026 $/sq ft | $165 | $156 ✓ |
| 1,500 sq ft | $247,500 | $234,000 ✓ |
| 2,000 sq ft | $330,000 | $312,000 ✓ |
| 2,500 sq ft | $412,500 | $390,000 ✓ |
| Labor Index | 0.86 | 0.81 ✓ |
| Material Index | 0.90 | 0.85 ✓ |
| Avg Permit Cost | $2,000 | $1,700 ✓ |
| Median Home Price | $342,000 | $218,000 ✓ |
| Home Price YoY | +4.8% | +4.2% |
| 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
Kentucky Notes
- ›Low labor costs
- ›Karst limestone terrain requires foundation testing
- ›Tornado risk in western areas
Cost by Home Size
| Size | Tennessee | Kentucky | Difference |
|---|---|---|---|
| 500 sq ft | $82,500 | $78,000 | Kentucky saves $4,500 |
| 1,000 sq ft | $165,000 | $156,000 | Kentucky saves $9,000 |
| 1,500 sq ft | $247,500 | $234,000 | Kentucky saves $13,500 |
| 2,000 sq ft | $330,000 | $312,000 | Kentucky saves $18,000 |
| 2,500 sq ft | $412,500 | $390,000 | Kentucky saves $22,500 |
| 3,000 sq ft | $495,000 | $468,000 | Kentucky saves $27,000 |
| 4,000 sq ft | $660,000 | $624,000 | Kentucky saves $36,000 |
| 5,000 sq ft | $825,000 | $780,000 | Kentucky saves $45,000 |