How to Build a Cheap House

As mortgage rates remain high, finding affordable house plans to build is an attractive option for a lot of prospective homeowners. If you’re wondering how to build a cheap house in today’s economy, you’re not alone. Read on to find out more about construction costs, designs, and the pros and cons of building a cheap house.

Picking an Affordable House Plan To Build: What to Consider

When choosing affordable-to-build house plans, there are a few key factors to consider. In addition to the style you want, pay attention to how much money you want to spend, where you want to build, and how big you want your house to be. 

Budget

First and foremost, you can narrow things down considerably by taking a look at your budget. How much cash do you have to spend on a downpayment? How much are you willing to take out in a construction loan? If you’re not sure what you can afford, you may want to meet with a financial advisor first. 

Location

Location is another big factor when figuring out how to build a cheap house. You’ll need to look at several factors, from material costs to the price of land. The difference between an affordable house plan in Southern California and Nebraska for example would be pretty drastic. 

Size

Once you’ve narrowed down your budget and location, you should have a pretty good size range in mind for your home build. In a rural area you might be able to build a 2,000 sq ft house for “cheap,” but in a metropolitan area, you may need to consider tiny home plans (500 sq ft or less).

Deciding Which Affordable House Plan Is Right For You

If you’re ready to look at cheap house plans to build, you also need to decide on the style and design you want.

Style

Whether you prefer contemporary or craftsman, you can pretty much build a cheap house in any style. Just be sure to find one that suits your family, and that will maintain future resale value in your area. 

Design 

Sometimes, the difference between a cheap house build and an expensive one comes down to design. Things like custom lighting, built-ins, and unique natural stone can all drive prices up. The simpler you make your home’s design, the more you’ll save on overall costs. 

Pros of Building a Cheap House

Affordability

Building a small/cheap house is often a lot more affordable than buying a pre-built home. If you can find a great cheap house plan that you love, you can save a lot of money.

Lower Mortgage/Debt

After construction is complete, your loan will be refinanced into a mortgage that is typically lower than that of a pre-built home.

Lower Property Taxes and Insurance

When you spend less money on building a home, you’ll also be spending less every year in property taxes and insurance premiums.

Energy Efficiency and Simpler Living

Smaller homes are also great for energy efficiency and simplifying your life. If you’re ready to spend less on power bills and get rid of unnecessary junk, building a cheap home is a great option for you.

Customization Flexibility

When building a cheap home, there are still so many choices you can make to personalize your design. Add a fireplace in every room, build a Murphy door bookshelf, or design a bathroom with a sauna. The options are endless.

Is it cheaper to build a house?

Despite the many pros of doing it yourself, it may not always be the most financially sound option. For example, is it cheaper to build a house in the location you’ve chosen or to buy one? The answer to this question will vary by state and also depends on how elaborate you want your design to be. 

Cons of Building a Cheap House

Lower Resale Value

When you select a smaller house plan, the resale value will reflect the size in the future, so make sure you plan for that eventual outcome. 

Zoning/Building Restrictions

Some states are more difficult than others when it comes to building a cheap house. Getting the right permits and dealing with delays can add up quickly and end up costing you more.

Higher Likelihood of High Maintenance Costs

Cheap builds often involve lower-quality materials or cut construction corners. You could end up with more upkeep and costly repairs in the future.

Location challenges

If you live in an area prone to destructive weather or crime, your house might not hold up to your initial cost-saving measures.

Creating a Realistic Timeline For Your Affordable House Build

If you’re ready to start a cheap house build, don’t expect it to be completed overnight. Even with a smaller plan, construction can take a long time, especially if you’re working on it yourself. Plan for months of temporary housing arrangements, weather complications, appraisal delays, and more. Giving yourself more time than you need is always better than coming up short. 

Conclusion

Whether you’re looking to build a tiny home or a mother-in-law addition, there are countless options for cheap house plans. Check out MonsterHousePlans’ cost-to-build calculator, architect consultations, and thousands of designs, and get started on your dream home today.

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