Type and Press “enter” to Search

How Much Does it Cost to Build a Custom Home?


A 2,500 - 3,000 sq. ft. custom home in the mid-atlantic region (Maryland, DC, Virginia) will cost about $750,000 to build.  That includes the cost to build a 3 bedroom 2.5 bath house, but not the cost to buy land or demolish an existing building

More of what you need to know about how much it costs to build a custom home. No matter how much money you have, building a custom home will always cost more than you want it to.  This is a simplistic but wise approach to exploring construction costs. In our Mid-Atlantic region, the starting price for custom homes is approximately $750,000. That will yield a 2,500 – 3,000 sq. ft. house which is suitable for 3 bedrooms and 2 ½ bathrooms. That’s a cost of $250-$300 per square foot, and this is a good value as “used” houses trade for a similar price per square foot in many neighborhoods.   That means that for approximately $750,000 you can expect to cover the costs of all of the materials and professional services required to build a custom home.

Professional services you'll need when building a custom home

  • architecture
  • engineering
  • construction labor



How much does land and demolition add to the cost of building a custom home? You may have noticed that professional services and materials are not enough to build a custom home (castle in the air anyone?).  In the mid-atlantic region, you can expect to pay approximately $250,000 to buy a piece of land and demolish the existing structure to make way for your custom home. 

Is $500,000 enough to buy a custom home in Maryland? Most custom home clients underestimate the costs of their project. For example, clients that propose a budget of $500,000 typically “spec” out a project that ends up costing $800,000. At that juncture, clients can choose to either reduce the scope and scale or redefine their budget. Our clients who accept higher than anticipated costs and pull the trigger anyway end up incredibly satisfied with their results. Their home becomes a good long-term-investment and a space where they are going to live their lives.

Is it worth it to build a custom home? Many people use the cost of new construction homes as a reference point when defining a budget for their custom home project.  Even though some new construction inventory from national builders is quality products, it’s good to keep in mind that their customers are purchasing pre-designed inventory. As a buyer, you get to select your finishes, but the purchase is not unlike the experience of purchasing a new car.

A custom home is conceptually closer to the idea of purchasing a bespoke suit, custom tailored to your exact measurements. This is modern luxury. The bottom line answer for how much it costs to build a custom home in maryland and the mid-atlantic region. How much does it cost to build a custom home? Probably less now than it will in the future.