Building a home could take an average of 10 months, but a contractor- or owner-built house could stretch the timeline beyond a year.
It’s not as simple as buying a plot of land and heading to the hardware store. Construction permits, financing, and even the weather can lengthen your timeline.
Average Time to Build a House
Despite the extra time it takes to build a home from scratch rather than buy an existing home, it’s no surprise that many Americans are opting to build a home.
Why? To customize a home to their tastes, for one thing. And the narrowing gap between the average cost to build a house and the cost of buying an existing home.
The average cost to build a house, including the land, was just over $500,000 in 2022, the National Association of Home Builders reported.
So how long does it take to build a house?
According to the U.S. Census Bureau’s 2023 home building statistics, the average time to build a one-unit residential building is 10.1 months. This breaks down to 1.5 months for authorization to start construction (the permitting process) and another 8.6 months to finish construction. Below is the average construction time based on the type of construction.
| Construction Purpose | Average months |
|---|---|
| Built for Sale | 7.4 |
| Contractor Built | 10.7 |
| Owner Built | 13.5 |
This time frame encompasses the entire home building process, from obtaining building permits to picking out the design.
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Factors That Affect How Long It Takes to Build a House
As with everything, the devil is in the details, so let’s look at factors that influence how long it takes to build a home.
Type of House
The type of home and design will have a significant impact on the construction timeline.
If you’re buying new construction, it will fall into one of these categories:
• Tract homes. These go up in a new development. The buyer chooses the design features and lot.
• Spec homes. With these move-in-ready homes, the buyer still might be able to choose some of the finishings.
• Custom homes. A builder customizes a house to the buyers’ land.
Predesigned home packages likely accelerate the construction timeline, while custom homes are likely to extend it. After all, custom designs require more coordination between architects, engineers, and contractors.
House Size
Naturally, larger homes take longer to build than smaller homes.
If you’re planning on a particularly ornate design, make sure you budget extra time (and money) for the project.
Larger properties with complex layouts are also more likely to encounter greater engineering challenges than simpler layouts. It’s also likely that unanticipated issues will arise during the build.
Location
While scenic, remote areas are attractive to many people seeking to build a primary or vacation home, the locale will heavily affect the ease of transporting materials, workers, and equipment.
Rocky terrain will also be more expensive and difficult to excavate and prep for construction. Installing common utilities will be more difficult.
Weather
Unless you’re looking into a modular home vs. a stick-built home, inclement weather can severely delay construction, as many parts of the process cannot be completed in rain or snow.
Your worksite may get flooded due to lack of completed drainage, and building materials may be damaged if not properly protected.
Financing
Homeowners with sufficient equity in their current home could apply for a home equity line of credit to fund their new home. If that isn’t an option, you could consider a personal loan, although it may have a higher interest rate than a HELOC. But many people will seek a construction loan. Obtaining a construction loan comes with its own complications.
xpect underwriting to take longer than it does for a typical mortgage, as the lender will want a detailed plan, budget, and schedule for the construction. The lender may also need to approve your builder. Generally, the lower your debt-to-income ratio and the better your credit score, the more favorable loan terms you’ll be offered.
Permits
Construction permits and zoning approval for home building can be significant time drains and are often beyond your control. A good contingency is to find a contractor who is familiar with the local application process.
Materials and Labor
Volatility in material prices and availability can make it hard for contractors to plan projects. Many construction materials are globally traded and geopolitical tensions, trade disputes, and changes in trade policy can add to costs, according to the National Association of Home Builders (NAHB).
Average hourly wages in the construction industry have increased 4.3% in the year ending October 2024, and there is an urgent need for more workers in the industry, according to NAHB. In general, contractors are particularly busy during the spring and summer, so contracting with a builder before those seasons could be a good idea.
Recommended: Personal Line of Credit vs. HELOC
The Process of Building a House
Here’s the typical home construction timeline:
• Buy land and obtain financing
• Obtain building permits and approvals
• Excavate the land and prep the foundation
• Build the framework and install utilities
• Put in walls, floors, and roof
• Install fixtures, appliances, and finish the exterior/interior
• Landscape, pave driveways, and prepare the grounds
• Get a final inspection from authorities
Shortening the Time It Takes to Build a House
While much of the home building process is outside your control unless you’re actually building the house yourself, there are ways you can mitigate the chance of complications.
Here are a few ways you can shorten the average time it takes to build a house.
Avoid Deviating From the Plan
One of the best ways to avoid lengthening a construction timeline is to ensure that you have building plans finalized well before you break ground, and that you stick to them.
Making last-minute changes is anathema to construction timelines.
Communicate
Avoid being the bottleneck when it comes to decision-making. The construction team will likely take their cues from you. So if you’re late answering an email, design query, or request for approval, your contractor will often be unable to proceed without your input.
Reduce Complexity
Keeping things simple will probably lead to a faster build, if that’s a priority. More complex plans clearly lead to lengthier construction times and introduce a greater likelihood that unforeseen problems will arise.
Craft the Contract With Care
The construction contract should contain a deadline for completion and spell out what will happen in the event of a delay.
It’s common for a contract to specify that “substantial completion” must occur by a certain date, and to define that. A clause can express that extensions can be given for unforeseen delays.
When a change is made after a contract is signed, it’s referred to as a “change order.” The change order might specify a deadline extension or new completion date.
Builders who breach the contract may be responsible for damages.
The Takeaway
How long does it take to build a house? It could take 10 months — and longer if you are doing the project yourself. A construction contract will typically contain a deadline and what will happen if a delay occurs. Allowing for a reasonable schedule can help ensure that your project finishes on time.
One important part of the construction process is financing your new home. If you have equity in an existing home, a home equity line of credit (HELOC) is one possible financing solution, and may offer a lower interest rate than a personal loan.
SoFi now partners with Spring EQ to offer flexible HELOCs. Our HELOC options allow you to access up to 90% of your home’s value, or $500,000, at competitively lower rates. And the application process is quick and convenient.
FAQ
How long does it take to build a house by yourself?
For the ambitious home builders among us, it takes around 10 months for a basic build, on average. The timeline can easily stretch out to two years or longer, depending on your experience and whether or not you choose to employ any assistance.
What causes delays when building a house?
Plenty of factors can delay a build. They include:
• Owner-caused delays
• Contractor-caused delays
• Weather
• Logistics
• Obtaining permits and approvals
• Size and scale of the project
• Communication failures
Can I get a loan to build a house?
You can apply for a construction loan or if you already have a home, a home equity line of credit, home equity loan, or cash-out refinance to fund the new home. A personal loan could be used for at least part of the build.
Photo credit: iStock/acilo
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