2026 Home Construction Cost Report
A comprehensive ranking of home construction costs across all 50 states and DC. Based on 2026 RSMeans data, NAHB surveys, and local permit records.
Key Findings
5 Most Affordable States
5 Most Expensive States
All 51 States Ranked by Construction Cost
| Rank | State | $/sq ft | 2,000 sq ft home | Median buy price | Buy YoY |
|---|---|---|---|---|---|
| 1 | Mississippi | $147 | $294,000 | $178,000 | +3.5% |
| 2 | Arkansas | $150 | $300,000 | $187,000 | +3.8% |
| 3 | Alabama | $154 | $308,000 | $210,000 | +3.2% |
| 4 | West Virginia | $154 | $308,000 | $155,000 | +3.8% |
| 5 | Kentucky | $156 | $312,000 | $218,000 | +4.2% |
| 6 | Oklahoma | $158 | $316,000 | $212,000 | +3.9% |
| 7 | Kansas | $160 | $320,000 | $238,000 | +3.4% |
| 8 | Nebraska | $162 | $324,000 | $268,000 | +3.9% |
| 9 | Iowa | $164 | $328,000 | $218,000 | +2.9% |
| 10 | South Carolina | $164 | $328,000 | $308,000 | +6.8% |
| 11 | Georgia | $165 | $330,000 | $318,000 | +5.8% |
| 12 | Missouri | $165 | $330,000 | $248,000 | +4.8% |
| 13 | New Mexico | $165 | $330,000 | $298,000 | +4.3% |
| 14 | South Dakota | $165 | $330,000 | $288,000 | +3.5% |
| 15 | Tennessee | $165 | $330,000 | $342,000 | +4.8% |
| 16 | Indiana | $169 | $338,000 | $242,000 | +4.1% |
| 17 | Louisiana | $169 | $338,000 | $218,000 | +1.8% |
| 18 | North Carolina | $169 | $338,000 | $332,000 | +6.1% |
| 19 | Idaho | $173 | $346,000 | $412,000 | +2.5% |
| 20 | North Dakota | $173 | $346,000 | $282,000 | +2.8% |
| 21 | Ohio | $173 | $346,000 | $242,000 | +5.5% |
| 22 | Texas | $173 | $346,000 | $322,000 | +3.1% |
| 23 | Wyoming | $173 | $346,000 | $332,000 | +2.5% |
| 24 | Arizona | $179 | $358,000 | $382,000 | +4.1% |
| 25 | Michigan | $179 | $358,000 | $258,000 | +5.1% |
| 26 | Wisconsin | $182 | $364,000 | $288,000 | +4.1% |
| 27 | Montana | $184 | $368,000 | $398,000 | +3.1% |
| 28 | Utah | $184 | $368,000 | $498,000 | +2.9% |
| 29 | Nevada | $188 | $376,000 | $418,000 | +2.2% |
| 30 | Minnesota | $192 | $384,000 | $332,000 | +3.2% |
| 31 | Delaware | $197 | $394,000 | $358,000 | +3.1% |
| 32 | Florida | $197 | $394,000 | $398,000 | +2.8% |
| 33 | Maine | $197 | $394,000 | $372,000 | +6.2% |
| 34 | Virginia | $197 | $394,000 | $392,000 | +4.5% |
| 35 | Pennsylvania | $203 | $406,000 | $288,000 | +4.2% |
| 36 | Colorado | $207 | $414,000 | $538,000 | +3.5% |
| 37 | Vermont | $207 | $414,000 | $392,000 | +5.9% |
| 38 | Illinois | $211 | $422,000 | $288,000 | +3.3% |
| 39 | New Hampshire | $211 | $422,000 | $482,000 | +5.8% |
| 40 | Oregon | $211 | $422,000 | $458,000 | +1.8% |
| 41 | Maryland | $222 | $444,000 | $425,000 | +3.8% |
| 42 | Washington | $222 | $444,000 | $598,000 | +2.8% |
| 43 | Rhode Island | $229 | $458,000 | $482,000 | +5.5% |
| 44 | Connecticut | $241 | $482,000 | $422,000 | +5.2% |
| 45 | New Jersey | $248 | $496,000 | $515,000 | +5.1% |
| 46 | Massachusetts | $254 | $508,000 | $628,000 | +4.5% |
| 47 | California | $273 | $546,000 | $785,000 | +2.9% |
| 48 | New York | $278 | $556,000 | $462,000 | +3.7% |
| 49 | District of Columbia | $291 | $582,000 | $688,000 | +2.1% |
| 50 | Alaska | $310 | $620,000 | $345,000 | +1.8% |
| 51 | Hawaii | $329 | $658,000 | $855,000 | +1.2% |
2026 Market Overview
After the dramatic 47% cost surge between 2020 and 2022 driven by pandemic-era lumber price spikes and supply chain disruptions, the residential construction market has stabilized. 2026 national average costs of $188/sq ft represent just a 0.5% increase over 2025, with labor costs continuing to inch upward while material prices remain largely flat.
The Southeast remains the most affordable region for new construction, with Mississippi, Arkansas, West Virginia, Kentucky, and Oklahoma all coming in below $160/sq ft for mid-range construction. Hawaii continues to be the most expensive at $329/sq ft, followed by California, New York, Alaska, and DC — all well above $275/sq ft.
Sun Belt states continue to see strong demand for new construction, with builder-grade homes remaining competitively priced relative to the existing home market. In Texas, Georgia, and the Carolinas, new construction often costs less than buying an equivalent existing home when accounting for renovation needs.
View full cost trend data 2020–2026 →