The past two years have seen a surge in home prices in Oregon and nationwide. With limited supply and high demand for homes, the typical value of a home in Oregon is more than $500,000. This marks a nearly 20% increase in home values in a single year. With rapidly rising prices and an extremely competitive market, you may be wondering: how much does it cost to build a house? If you’re frustrated by a lack of homes for sale and are considering building your own home, read on.

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

If you run a Google search for “how much does it cost to build a house in Oregon?” you may be surprised by results that report it costs on average $282,080 to build a house. After all, that figure is significantly less than the average value of an existing Oregon home. However, it’s important to note that it is an average only. A better way to determine how much it costs to build a home in Oregon is to plan to spend $100-$200 per square foot of the home for a standard new build. If you’re planning a luxury home with lots of custom work, you may plan to pay closer to $500 per square foot.

Keep in mind these are averages and subject to economic trends. For example, the cost of raw materials has been fluctuating significantly since the start of the COVID-19 pandemic, and ensuing supply chain issues and inflation have kept the prices elevated. For example, the cost of lumber hit record highs in 2020 and 2021. As of this writing, the cost of building materials has been up 31% since January 2020. However, a variety of construction loans may be available to help you finance the construction of your new home.

What Goes into the Cost of Building a Home?

If you’re dreaming of building your own house, it can be helpful to know exactly what you’ll need to pay for.

Land Purchase/Land Prep

You’ll need to buy and prep the land your house will be built on. So plan to pay for the land itself and lot clearing. Lot clearing involves both tree removal and leveling if necessary.

Home Plans and Permitting

You’ll need plans from a developer or builder before you can seek the specific building permits you need. The average cost for house plans is about $5000, with permits typically costing another $20,000-$30,000.

Laying the Foundation

The foundation of concrete will mark the official “breaking ground” point in the construction of your new home. The cost will depend upon the footage of the house, but this is often approximately $15,000.

Framing Your House

Framing can get expensive because the cost of building materials is so high. Be sure you know exactly what you’ll be expected to pay for materials so that you aren’t caught off guard by steep bills.

External Features

Depending on the materials you use for your home’s exterior walls, roof, and the types of windows and doors you add, plan on the external features costing at least $50,000.

Electrical and Plumbing Systems

You need water and electricity in your home, and the installation will also be a sizable portion of the total cost of your home. You can expect to pay at least $50,000 for these systems.


Your interior is typically the most expensive part of your home, as it covers everything from insulation to countertops and flooring to appliances. Expect this to cost a minimum of $100,000.

Final Touches

Plan to spend at least $20,000 for driveway paving, patio or deck construction, or landscaping.

Home Construction Loans in Oregon

If you’re asking yourself how much does it cost to build a house, Strategic Mortgage Solutions can help with financing. Construction loans are available that will allow you to finance the building costs, including labor, framing, materials, building permits, and more. Contact our experienced Oregon mortgage brokers for answers to questions or to begin your search for the perfect construction loan. Call us today at 541-275-1148, or send us a message.