How Much Does it Cost to Build a House in Michigan? MI 2022

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Michigan is the world’s autos capital. People love to build homes here. Because it is a state where you can enjoy all four seasons in one day. Aside from being the only state to have two peninsulas, Michigan also has a coastline.

In terms of natural beauty, Michigan has a lot to offer. Michigan’s high-quality education and well-paying jobs are recurrent themes. This is an ideal place to build a house and living among nature is wonderful.

In this article, we will examine the different aspects of building a house in Michigan. The cost of the entire process will be broken down into various sections for your convenience.

how much does it cost to build a house in michigan
How Much Does it Cost to Build a House in Michigan

How Much Does It Cost To Build A House in Michigan?

For new home builds in Michigan for 2021-2022, a more-realistic price per sq/ft is $250 (minimum, for a basic home with no frills) to $300 sq/ft (for a home with 9′ ceilings, 3-car garage, tiled showers, butler’s pantry, vaulted ceilings in some areas).

Taking labor costs into account, the total cost of a 2500-square-foot house is around $625,000 to $750,000. No decorating, interior, or exterior finishing costs are included in this figure.

A ranch-style 3000-square-foot house in Michigan costs you from $750,000 to $900,000, which is the most affordable. For making their dream home, most people set a budget of $500,000 or more.

Michigan House Building Cost Summary

It is estimated that constructing a house in Michigan would cost approximately the following in 2022:

Land Cost Per Acre$25,750
Roof Installation$7,000-$50,000
Major Systems Installation300,000
2000 Square Foot House$500,000-$600,000
Per Square House Building Cost$250-$300

Is it Cheaper to Buy or Build a House in Michigan?

According to our estimate, the average cost to build a house was nearly $600,000. According to recent data, the average cost of buying an existing single-family home was nearly $330,000. That means choosing to buy a pre-existing house instead of a building is quite a deal.

But there are a lot of problems in the face buy the buyer who tries to buy a house. And who wants to build need a house which he/she dreamed of all his life then he should build a house in Michigan.

Related: How Much Does it Average Cost Per Square Foot to Build a House in Los Angeles?

What Is the Most Expensive Part of Building a House in Michigan?

There are several segments that need to complete to make the house. According to our research, the most expensive part is farming. So, here in Michigan farming is also the most costly part of constructing a house.

Although exact framing costs can sometimes be difficult to predict, general guidelines can help you determine what will increase the cost. Size, the larger the house, the more expensive it will be to frame.

Related: What is the Average Cost of Building a House in California?

Lowest, Highest & Average Per Square Foot House Building Cost in Michigan 2022

Finding out what the price is based on square feet is very confusing. With the data we have at hand, we try to present a table of costs based on the size of your home, for our users’ readability.

You can choose your home size according to your budget as you like:

Home SizeAverage CostHighest CostLowest Cost
800 ft$220,000$240,000$200,000‬
900 ft$247,500$270,000$225,000‬
1000 ft$275,000$300,000$250,000
1200 ft$330000$360,000$300,000
1500 ft$412,500$450,000$375,000
1600 ft$440,000$480,000$400,000
1800 ft$495,000$540,000$450,000
2000 ft$550,000$600,000$500,000
2500 ft$687,500$750,000$625,000
2700 ft$742,500$810,000$675,000
3000 ft$825,000$900,000$750,000
3500 ft$962,500$1,050,000$875,000
3700 ft$1,017,500$1,110,000$92,5000
4000 ft$1,100,000$1,200,000$1,000,000
4500 ft$1,237,500$1,350,000$1,125,000
4700 ft$1,292,500$1,410,000$1,175,000
5000 ft$1,375,000$1,500,000$1,250,000
5500 ft$1,512,500$1,650,000$1,375,000
5700 ft$1,567,500$1,710,000$1,425,000
6000 ft$1,650,000$1,800,000$1,500,000

Related: How Much Does it Cost to Build a House in Massachusett Per Square Foot?

Major Michigan Cities Home Construction Costs 2022

The state of Michigan has some common cities where people build houses. Below, you can find pricing information for each city. The lowest prices are in Sterling Heights and the highest prices are in Grand Rapids City in recent years.

Now let’s see how much it would cost you to make a house in the other cities in Michigan.

Top Michigan CitiesPer Square Foot Cost
Sterling Heights, MI$250
The City of Flint$260
City of Warren$270
The City of Ann Arbor$280
Lansing, Michigan’s Capital City$320
The City of Detroit, Michigan$350
City of Grand Rapids$400

Related: How Much Does it Cost to Build A Custom Home in Arizona?

What is the Total Cost of Constructing a Home in Michigan, MI?

You must know all the possible costs that will add up throughout the house-making project. So you must check what a Michigan builder includes on the quote when they submitted the final proposal.

In reality, there are several other expenses to consider in addition to the land price and budget for building design and construction projects. Here is a list of all expenses given below: 

  • Increasing Land Price: After the covid-19 pandemic, the price of Michigan land increases by almost 15% to 20%.
  • Construction Materials: Hard costs are those related to bricks and mortar. These include foundations, building walls, roofs, electrical, landscape, and frames. Since interior or exterior finishes, light fixtures, fittings, and built-in appliances are all personal preferences, it can be difficult to estimate how much they will cost. So, all you need to make a plan for it before starting.
  • Cost of Labor: Build your own home, and then pay the builders, engineers, architects, plumbers, electricians, and other professionals to work on it.
  • In architecture and engineering, site structures need to be well organized.
  • Major System Installations: Electricity work, fireplace, heating, ventilation, air conditioning systems, plumbing and a sceptic system, lighting sewage, audio installation, and more.
  • Various permits and other necessary fees will be taken by the authorities.
  • Hidden costs including outdoor structure, cabinets, countertops, hang drywall, driveway, site cleanup, bookshelf, floor-standing speakers and painting may also be counted.

Here is a closer look at each of them, starting with the price of your land and construction materials.

Related: What is the Average Cost Per Square Foot to Construct a House in Indiana?

1. Buying Land in Michigan

In most housing construction projects, the cost of the land determines the amount of money a homeowner will have to spend on the building process. When choosing the best place for your home, you need to consider what you’ll need, and if those things are there, you should look at the costs associated with purchasing the land.

Residential land in Michigan costs an average of $25,750 per acre, but the price also depends on the location. 

Our own research, 2022

Different cities have vastly different real estate values, just as different states do. Be sure that the city you choose matches your standards before choosing it.

The two most expensive places to buy real estate in Michigan are Bloomfield Hills and Birmingham. If you have the budget for it you can choose the place to build your nature home.

Related: What is the Average Construction Cost Per Square Foot in Alabama?

2. Average Raw Material Cost

The construction process begins after you acquire the plot of land. In order to complete this part, there are a number of steps to take. The costs of each part of the house construction are different.

Here are some costs that you should be aware of:

# Per Square Foot Basement Cost

In Michigan, you can expect to spend $5 to $10 per square foot on a Basement or concrete foundation. It costs about $6.5 to $8.5 per square foot to install a 4-inch reinforced concrete slab on grade. A 20×20 concrete slab cost would cost you around $1,700 and $3,500 in Michigan, MI 2022.

Related: How Much Does it Cost to Build a Modern House in San Diego?

# Framing Cost

Frames for houses are also very expensive. The actual cost of materials per square foot ranges from $4 to $7. For example, $6 per square foot for basement framing costs, $8 per square foot for garage framing costs, and existing structures typically cost between $10 and $15 per square foot for interior walls.

Related: How Much Does it Cost to Build a 1,500 sq ft House in Pennsylvania?

# Roof Cost

The cost of installing a new roof in Michigan ranges from $7,000 to $13,000, according to HomeAdvisor.com. You can expect to pay between $6,500 and $15,000 for the installation of metal roofing and asphalt shingles, whereas slate roofing could cost as much as $20,000 to $50,000 or more in recent years.

Depending on the homeowner’s preferences will determine the price of fixtures, finishes, appliances, and landscaping. When you choose smart kitchen appliances, you can quickly add up the cost of larger and branded integrated appliances.

Important Note: Your property has to be connected to a road, even if it’s in the middle of nowhere and you’re far from the main road.

Related: How Much Does Residential Construction Cost Per Square Foot to Build a House in Kentucky?

3. Labor Costs for Construction in Michigan, MI

Local conditions affect construction labor costs. We have data on hand that doesn’t vary too much, but you must include the rate. That way, they won’t cause you any trouble later on.

On average, construction laborers in Michigan earn between $17 to $20 an hour. You may need a project manager to oversee the construction on your behalf if you don’t want to hire a team. They usually charge $60 to $85 an hour.

Also, a Michigan architect charges between $65 and $170 per hour, while an engineer charges between $120 and $250 per hour.

Related: What is the Actual Price Per Square Foot for a Custom Home in Montana?

4. Major Systems Installation Cost

The construction of a house would not be complete without necessary systems such as:

  • Water and electricity.
  • Fireplace.
  • Wastewater collection system.
  • In-ground drainage system.
  • HVAC systems.
  • Custom paver designs & installation.
  • Home grading plan.
  • Fire alarm systems.
  • Smoke detectors.
  • Heat detectors.
  • Water flow detectors.
  • Manual pull stations.
  • Life safety devices.

Related: How Much Does it Cost to Build a House in Maryland, MD?

Installation of these major systems will cost at least $300,000 on average for a typical two-story, four to five-bedroom house in Michigan in 2022.

According to city officials, depending on the lot size of the property and house location, the cost of connecting to the Michigan city’s water system can range anywhere from $9,000 to $15,500.

At the same time, installing pipes by professional costs around $560 to $1,300 per fixture, including washroom, kitchen sinks, shower, deep bathtubs, standard outdoor faucets, etc.

In Michigan, French Drains (exterior drains) cost about $22 to $26 per linear foot if you’re installing one. In most cases, standard concrete drywall costs between $2,300 and $4,000 to install including labor charges. These prices could still be affected by soil (ph) testing, authorization, and other important factors.

Installing a central air conditioning system costs between $6,000 and $17,500 in Michigan, with most house-holder usually expenses about $8,500 on average. Installing a new furnace or ductwork costs an extra $10,000.

Related: How Much Does it Cost to Build a House in Florida?

5. Types of Permits and Soft Costs

Permits are considered soft costs, which are not included indirect construction costs. The following permits are required when building a house in Michigan:

Permit Name Price Range
Pool Heater Allowance$11-$30
Water Heater Permit$70
Fireplace Allowance$60-$80
Mechanical Permit$70-$120
HVAC Permit$279-$450
Electrical Permit$300-$570
Plumbing Access$250-$600
Building Allowance$1,200-$2,500

Important Note: Sometimes you need to get permits for finishing a basement, converting a garage into a room, storage shed, fence and wall installation, building a deck, demolition & relocation, roof replacement, and more.

Related: Step-by-Step Guide to Building Costs Per Square Foot in the State of Texas, USA?

6. Extra Feature Adding Costs

Sometimes, we need to add some space to extend our living room. If you’ve already built your house in Michigan, and you want to add additional living spaces in your house such as:

  • Decks backyard.
  • Separate bedroom.
  • A man-space.
  • A creative guest house.
  • Swimming pool.
  • An Extra driveway.
  • Equipped garages.
  • Media room.
  • Front porches.
  • Outdoor storage.
  • Patio pergolas.

Then you’ll be charged for 2 things:

The first one is in the permits section; it depends on the complexity of the addition. As an example, if you plan to add a shed to your property that has lighting and a water source, you must obtain a building permit and pay permit fees of up to $2,500. You might just have to spend around $150 or less to build a pergola or an outdoor garden structure.

The second is in construction, a 10*10 deck costs approximately $2,700 including materials price. The cost of constructing a 40-foot pool can reach $52,000. Building a basement into an existing home can cost $23,000-$180,000 based on the size.

Related: How Much Does it Cost to Cost Per Sq Ft to Build a House in Connecticut?

7. Count Hidden Costs in Michigan (MI)

As a construction manager, ancillary costs vary from project to project and refer to the expenses he incurs providing his services. Getting a garage permit or obtaining a license is one of these costs, but they aren’t directly related to building your garage.

You would still have to pay processing fees and these would be billed to you collectively as ancillary charges. There are some other costs that are included later but you won’t find them with your naked eyes that’s why we’ve named it a hidden cost.

Related: How Much Does it Cost to Build a Custom Home in Wisconsin?

You might also encounter the following hidden costs while building a house in Michigan:

Firstly we’ll see some permit costs hidden if you inspect the receipts closely. Preparation of the site, contour testing, house demolition, and any other necessary work before construction is necessary. To get Michigan permits or make sure the foundation is long-lasting, expert architects and engineers perform these tests.

The second requirement is temporary site materials. Builders need basic portable toilets, a hand washing station, temporary fencing outdoor, scaffolding set/equipment, and other items that will be removed after construction but are needed most throughout the project. 

The last one is in the redesign section. Any changes your architect or engineer requests after you’ve agreed to the final house plan will cost you. No matter how small you think these changes are, as long as the professionals spend time on these modifications and construction materials are included in the budget, you’d still be responsible for these unexpected expenses.

Suggestion: Don’t get panic, these three hidden costs won’t bother you nor hurt you in your overall budget.

Related: How Much Does it Cost to Build a Home in Tennessee?

How to Save Money by Building a House in Michigan 2022

Budget is a crucial thing for any kind of project, big or small. You’re working hard to earn every penny, so saving it will make you happy.

Our main focus is on how general people can build their houses in an effective and efficient manner and take advantage of the online services available.

Related: How Much Does it Cost to Build a House in Utah, UT?

Keeping Your Credit Score High

In the case of a home purchase, there is an existing structure that can serve as collateral. Interest rates on loans are set based on this factor. A house built from the ground up lacks any collateral, so interest rates tend to be higher.

You can get a good interest rate on a home loan if you have a good credit score. Keep your credit accounts paid off as much as you can. Be sure to pay off any large debts you may have before building a new home.

Related: What is the Cost of Building a Home in Virginia?

Hiring Local Contractors

In the process of building a home, you will deal with a number of vendors. To name a few, these companies include materials suppliers, furnishing companies, landscapers, architects, interior designers, electricians, carpenters, and civil engineers.

It’s important to research local vendors when trying to build a house on a budget. When choosing a company to work with, you need to strike a balance between quality and affordability.

Related: What is the Average Cost to Build a House in Chicago?

Savings in Buying Material

If you hand over the task to your project manager, you will likely have to spend a lot of money on materials. When they are going to buy your home’s materials, you should go with them.

Alternatively, you can take his suggestions and purchase the materials online. When purchasing online, you can save time and money by saving your search costs and transaction costs. The majority of online retailer shops offer discounts and some offer packages.

Researchers have found that online purchasing is very cost-effective, and it gives the customer many options to choose from.

Related: How Much Does it Cost to Build a House in Colorado Mountains?

Be Aware of Resale Value in MI

As you look for ways to build your dream home at a lower cost, don’t forget to take steps to maximize its value if sold. You can ensure a healthy return on investment whenever you construct a home, which is as much an investment as it is an expense.

Installing energy-efficient components is one way to future-proof your home. Home energy efficiency can be achieved with solar panels, window coatings, and radiant barriers. You will not only save money but also appeal to buyers if you decide to sell your home later.

It is important that you work with a top local real estate agent when building a home because it is a big financial investment. With the help of Clever, those building new homes can quickly identify land and tap into a reliable network of contractors and other professionals to work with.

Related: What is the Average Cost to Build a House in Missouri?

3 Major Factors to Consider When Building a Custom House

There are some other factors you’ll experience when you are going to build a custom house. Let’s see them one by one.

  • Your home’s size is the first factor you need to consider. Larger homes are more expensive than smaller ones.
  • Then comes the number of rooms you want. Additional stories mean additional construction and design features with work.
  • Finally, you must consider how complex your desired model is. The more corners a house has, the more it will cost. The more unusual the shape, the more expensive it will be. Complex rooflines and exterior bump-outs increase costs as well.

Then you’ve to think about the other features such as pools, outdoor kitchens, and large decks that are common features. As well as increasing the value and enjoyment of your home, these enhancements can also increase its construction and upkeep costs.

Related: How Much Does it Cost Per Square Foot to Build a House in Hawaii?

Why You Build a House in Michigan, MI?

To build a house in Michigan you can live your American dream alive. You can the best suitable land at a reasonable price. The labor cost and the other cost of materials are very cheap here. Many importers are available here who provide constructing material at a very suitable price which can reduce the actual construction cost.

The cost of living in Michigan is moderate and the other facilities are available for every kind of person. There you can see the cultural diversity; people respect others’ opinions and beliefs. The education facilities are great here.

The price of the construction workers is also reasonable compared to the other states of the USA. You can find every kind of worker with them you can build every kind of house like luxury homes, modular homes, prefab homes, or prefabricated homes with high-end finishes.

Related: How Much Does it Cost to Build a House in North Carolina?

Some Most Commonly Asked Questions by People about (Michigan House Building): FAQs

How much does it cost to build a 2000 sq ft house in Michigan?

The average cost of building a house is $750,000 or between $250 and $300 per square foot depending on where you live, how big the house is, and if you use modern or custom designs. The average cost of new home construction for 2,000 square feet is $500,000 to $600,000

How much lumber do I need for a 20,000-square-foot house in Michigan?

The actual project cost of a 2,000 square-foot home uses nearly 16,000 board feet of lumber and 6,000 square feet of structural panels, such as plywood.

How long does it take to build a house in Michigan?

According to the US Census Bureau, the average new home construction process takes approximately seven to eight months. During this time frame, plans will be finalized and permit obtained, construction will begin, and a final walkthrough will be conducted.

What is the best month to build a house in Michigan?

Building a home is ideal in the spring, but building materials and construction costs are usually at their lowest during the fall and winter months.

Is a ranch home more expensive to build in Michigan?

Ranch houses have a higher price because their square footage is distributed over a single floor rather than multiple floors. The foundation, roof, and material costs are increased due to this.

“One Mind” with Michigan House Construction 2022

Using this guide, you can minimize the cost of building a house in Michigan. I’d love to hear how you estimate and manage your home-building project in Michigan or any other state in the U.S. like Georgia, Ohio, Maine, and Florida.

We discuss a number of topics, including home construction trends, modern contemporary houses, architectural style plans, home improvement, exterior ideas, and others.

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