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

Michigan is the world’s autos capital. People love to build homes here. Because it is a state where you can enjoy 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?

In 2022, the average per square foot cost to build a home in Michigan ranges from $90 to $150. So, the overall cost is around $225,000 to $265,000 for a 2000-square foot house inclusive of labor costs. This doesn’t include finishing and landscaping costs.

Generally, the cheapest type of house to build in Michigan is a ranch-style home, which could range between $200,000 and $600,000 for a 1,700-square feet house. The average price most people pay is around $350,000.

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$13,733
Roof Installation$6,550-$45,000
Major Systems Installation200,000
2000 Square Foot House$225,000-$400,000
Per Square House Building Cost$90-$150

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

According to our estimate, the average cost to build a house was near $300,000. According to recent data, the average cost of buying an existing single-family home was nearly $230,000. That means choosing to buy a pre-existing house instead of a building is quite a deal.

But there’s a lot of problem in 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.

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 expensive part is farming.

Framing is the most costly part of building 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.

Per Square Foot (sq ft) House Building Cost in Michigan

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 size as you like.

SizeAverage CostHighest CostLowest Cost
800 ft$120,000‬$160,000$80,000
900 ft$135,000$180,000$90,000
1000 ft$150,000$200,000$100,000
1200 ft$180,000$240,000$120,000
1500 ft$225,000$300,000$150,000
1600 ft$240,000$160,000$320,000
1800 ft$270,000$360,000$180,000
2000 ft$300,000$400,000$200,000
2500 ft$375000$500,000$250,000
2700 ft$405,000$540,000$270,000
3000 ft$450,000$600,000$300,000
4000 ft$600,000$800,000$400,000
5000 ft$750,000$1,000,000$500,000

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 Flint and the highest prices are in Grand Rapids City. Now let’s see how much it will cost to make a house in the other cities.

City NameCost (sq/ft)
Detroit$153
Grand Rapids City$166
Warren City$116
Sterling Heights$114.33
Ann Arbor City$120
Lansing City$125
Flint$105

What is the Full Cost of a Michigan House?

You must know all the possible costs that will add up throughout the project and what a Michigan builder includes on the quote. In reality, there are several other expenses to consider in addition to the land price and construction budget. These expenses include: 

  • Land Price.
  • Materials: Hard costs, or brick-and-mortar costs, include foundation costs, roofing costs, and framing costs. Materials for finishes, fixtures, and built-in appliances are more difficult to estimate because they are subject to taste and preference.
  • Cost of labor: Build your own home, and then pay the builders, engineers, architects, plumbers, electricians, and other professionals to work on it.
  • Major systems: Electricity, HVAC, plumbing, sewage, and so on.
  • Various permits and fees.
  • Hidden costs.

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

1. Land Price 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 $13,733 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.

2. Cost of Construction Materials in Michigan

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:

# Foundation Cost

In Michigan, you can expect to spend $5 to $8 per square foot on a concrete foundation. It costs about $5-$7 per square foot to install a 4-inch reinforced slab on grade.

# Framing Cost

Frames for houses are also very expensive. The actual cost of materials per square foot ranges from $4 to $6. For example, basement framing costs $4/sq ft, garage framing costs $5/sq ft, and interior walls for existing structures cost between $6 and $12/sq ft.

# Roof Cost

According to HomeAdvisor, new roof installation costs in Michigan range from $6,550 to $11,900. You can expect to pay between $5,000 and $12,000 for metal roofing and asphalt shingles, whereas slate roofing could cost as much as $18,000 to $45,000 or more.

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

3. Construction Labor Costs 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 $15 to $18 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 $50 to $80 an hour.

Also, a Michigan architect charges between $40 and $150 per hour, while an engineer charges between $100 and $200 per hour.

4. Major Systems Installation

The construction of a house would not be complete without necessary systems such as water and electricity, sewers, drainage, HVAC systems, paving, grading, and life safety equipment. Installation of these major systems will cost at least $200,000 for a typical two-story, four to five-bedroom house.

According to city officials, the cost of connecting to the city’s water system can range anywhere from $8,500 to $13,500, depending on the lot size and home location. At the same time, installing pipes cost $450 to $1,000 per fixture, including toilets, sinks, bathtubs, outdoor faucets, etc.

In Michigan, French Drains (exterior drains) cost about $18 to $21 per linear foot if you’re installing one. In most cases, standard concrete drywall costs between $2,000 and $3,000 to install. These prices could still be affected by soil analysis, permits, and other factors.  

Installing a central air conditioning system costs between $4,000 and $16,000 in Michigan, with most homeowners spending about $7,000. Installing a new furnace or ductwork costs an extra $9,000.

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

5. 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
Building Permit$1,000-$2,000
Electrical Permit$10-$500
Mechanical Permit$50-$100
Plumbing Permit$50-$500
HVAC Permit$250-$400
Fireplace$50-$70
Water Heater$50
Pool Heater$10-$20

There are also project-specific permits such as permits for garage conversion, adding a fence, changing the roof, adding a deck or shed, basement construction, demolition, and more.

6. Extra Feature Adding Costs

If your Michigan house is already built, but you plan to add extra living spaces Such as another room, a man cave, a separate guest house or a pool, another driveway, garages/sheds, decks, porches, and pergolas, you’ll be paying for two 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 $2,000. You might just have to spend around $120 or less to build a pergola or an outdoor garden structure.

The second is in construction, a 10-by-10 deck costs approximately $2,000, materials included. The cost of constructing a 40-foot pool can reach $40,000. Building a basement into an existing home can cost $20,000-$150,000.

7. 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 which are included later but you won’t find them in your naked eyes that’s why we’ve named it as for hidden cost.

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, demolition, and any other necessary work before construction is necessary. To get Michigan permits or make sure the foundation is stable, architects and engineers perform these tests.

The second requirement is temporary site materials. Builders need portable toilets, temporary fencing, scaffolding, 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 last-minute 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 how general people can build their houses in an effective and efficient manner and take advantage of the online services available.

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.

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.

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 room 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 material 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 $300,000 or between $90 and $150 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 $200,000 to $400,000.

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. 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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