How Much Does it Cost to Build a House in Oregon? [2021]

So, are you a “Portlandia” fan? Or do you just want to live in a place where no sales tax exists? Maybe you like beaches.

Well, if you are thinking about building a house in Oregon, you’ve come to the right place. Oregon is in the northwest region of The United States. It is the most expensive region to build a house. But considering the costs, Oregon still is a great place to build your dream house.

Oregon shares its borders with Washington. It also shares the Columbia River with this state. Oregon has its unique landscapes. People of different tastes can find something that they like here. Some major cities in Oregon are doing great. For example, Portland is the most famous.

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

In this article, let us look at the different cost dimensions of building a house in Oregon. We will try to go deep and dissect the different aspects of building a house in Oregon. Hopefully, in the end, you will have enough information to start your house-building project.

How Much Does it Cost to Build a House in Oregon?

Oregon is one of the most expensive regions to build a house in. The median cost of building a house in Oregon is $135.93 per square foot for basic construction. The actual construction costs will surely vary from this number. 

The choices you make regarding different aspects of the construction project like materials, framing, architecture will decide your square footage to a great extent. Some people also like to do something very unique while building their houses. People also build their houses entirely underground or in trees.

Average Cost to Build a House in Oregon

So, making such unique decisions for your house will increase your cost significantly. But it is safe to state the number for basic construction. The range of your own house building cost for a basic construction will be from the lowest $109.41 per square foot to the highest $162.45 per square foot.

The average cost is meant to give you an idea about a project’s possible cost. This will almost certainly be overrun by the actual project cost. In the end, every house you build will have different square footage.

Oregon House Building Cost Summary

The following table shows a breakdown of all the costs associated with constructing a house in Oregon (OR).

Basic Construction Cost$109.41 per square foot
Median Home Building Cost$135.93 per square foot
Highest House Building Cost$162.45 per square foot
Framing Cost$20,000-50,000
Full Site Preparation3%-8% of the budget
Material Cost50% of the total budget
Labor Cost30%-60% of the construction budget

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

Another important aspect of building your house will be the size. The bigger the size of your house, the more it will cost to build. So, let’s look at the cost per square foot to build a house in Oregon according to size,

SizeLowest Cost Highest CostAverage Cost
1000 sq ft$109,410$162,450$135,930
1500 sq ft$164,115$243,675$203,895
2000 sq ft$218,820$324,900$271,860
2500 sq ft$273,525$406,125$339,825
3000 sq ft$328,230$487,350$407,790
3500 sq ft$382,935$568,575$475,755
4000 sq ft$437,640$649,800$543,720
4500 sq ft$492,345$731,025$611,685
5000 sq ft$547,050$812,250$679,650

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

Major Oregon (OR) Cities Home Construction Costs 2021

Oregon has some of the most established cities in the country. These are doing well in terms of employment, security, and living standards. Now, let’s look at the cost of building a house in some cities of Oregon.

City NameLowest CostHighest CostAverage Cost
Portland$102.03 per sq ft.$151.50 per sq ft.$126.77 per sq ft.
Eugene$108.71 per sq ft.$161.42 per sq ft.$135.07 per sq ft.
Salem$109.31 per sq ft.$162.30 per sq ft.$135.81 per sq ft.

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

5 Factors to Consider for House Building Costs in Oregon

Some people build houses for a living and some people or companies do it to sell for a price. Either way, a person’s decisions in building a house will certainly be different from another person. So, it is always safe to consider the range and prepare for spending some extra money above average. Before you start building your dream home in Oregon, here are the top 5 things you have to take into consideration.

1. Site Preparation

Preparing the site for the construction work is a primary step. You can only start the construction after the site is fully prepared. This requires good effort and heavy work.

Site preparation includes demolition of any existing structure, clearing materials from the site, and building the drainage lines. Full site preparation will consist of 3%-8% of your budget.

2. Material Cost

The materials you use will determine the cost of your house to a great extent. The costs of a small house can exceed the costs of a big house because of the used building material. Material costs can easily take up to 50% of your total construction budget.

3. Framing & Exterior Work

Framing is a major cost factor in building your house. Framing can easily take up to 20%-30% of your whole budget. Framing costs about $20,000 to 50,000 on average. Framing will create the initial structure of your house. 

The number of rooms you’ll have, the shape of your house, will all be determined with framing. So, framing needs important attention. Exterior work includes roofing, windows, doors, etc. The exterior can easily take up to 15%-20% of your whole budget.

4. Interior Finishes

Interior works are done differently in every house. People have different preferences. And everyone wants their house to be exactly as their preferences. People want a different level of finish. The exterior of the house can be excused to some point. but you live inside of a house. So, the inside has to e perfect.

Some people have luxurious choices for their houses, some want minimal finishes. Either way, the range you can spend on this is entirely up to you. Interior finishes will take 25%-35% of your budget.

5. Labor Cost

Labor cost is the factor that will transform the rigid materials into your fully finished house. So, the better the labor, the greater the quality of work will be. Labor cost can be influenced by the commute time to the site location, the labor cost of the particular geographical area, etc. Labor costs will take 30%-60% of your construction budget.

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

A Guide to Oregon Building Permits

A building permit is a primary step. It is illegal to start any construction work without the necessary permits. First, you will have to apply to the local city offices for necessary permits. After application, there will be inspections. You will have to pay small amounts on inspection fees.

It is a contractor’s job to get all the necessary permits. If you see any indifference in your contractor regarding permits, you should instantly take the necessary actions. You should replace your contractor if necessary.

Here are links to some city websites, Portland, Eugene, and Salem. You can find the necessary information here.

The Cost of Building a House vs. Buying a House: Which Is Right For You?

Building a house is more costly than buying one. Building a house requires some initial investment. The cost of land, site preparation, primary expenses for setting up utilities (sub-meter, electric meter), ballast, backflow preventer, etc. All these costs play a role in increasing the overall costs.

On the other hand, buying a house is easier. The only price is the sales price. The one extra cost you have to occur is the realtor commission. Other than that, everything is basic. Building a house will cost you at least a hundred thousand more.

But building a house has a stronger emotional element to it. No matter what house you buy, there will always be some things that are not der to you. Things might not always e according to your preferences. but while building a house, you can make decisions about every single brick.

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

The following FAQ provides more answers to some frequently asked questions about building a house in Oregon (OR).

Should I buy land in Oregon?

Yes, you should buy land in Oregon. Oregon is a good place to invest. Some people just want to build houses and some just want to invest in lands. Either way, it is a very smart decision to invest in the lands of Oregon.

Is it cheaper to build a house in Oregon?

No, it is not cheaper to build a house in Oregon. Oregon is in the northwest region of the country. It is one of the costliest places to build your house. 

Can I build a tiny house in my backyard in Oregon?

Yes, you could easily build a tiny house in your backyard. You need enough space in your backyard to do it. Tiny houses are a few hundred square feet in size. It will cost you around $50,000 to build a small house in your backyard. 

How long does it take to build a home in Oregon?

It takes seven months to complete a house on average. But there are exceptions. You can employ extra resources to finish your construction work. This will also cost you more money on labor. This way you can do it in just three months.

Are tiny houses legal in Oregon?

It is not completely illegal to build a tiny house in Oregon. There are some standards that you need to meet. If you can meet all these standards perfectly, there is no legal problem in building a house in Oregon. 

Legal Approval Process: To get legal approval visit here, and learn more about the standards and other legal aspects.

Our guide to Oregon home building costs is intended to help you reduce your costs. We welcome any questions or requests for assistance that you may have or to share your own experience with house construction. Read our blog for more information about home construction, house designs, home improvements, and related topics.

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What is the Average Cost to Build a House in Missouri?
How Much Does it Cost to Build a Small Castle?
How Much Does a Bridge Cost to Build?

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