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

Arkansas, located in the southern region of the United States, has been experiencing a steady growth in its housing market. With a combination of a low cost of living and a diverse range of housing options, it has become an attractive option for individuals and families looking to build a home.

The average cost to build a house in Arkansas ranges between $225,000 – $500,000. The construction costs largely depend on the type of property, construction area, and customizations.

However, before embarking on such a significant project, it is essential to understand how much does it cost to build a house in arkansas? and the various costs involved in building a house in Arkansas. By gaining a comprehensive understanding of these costs, you can make informed decisions and plan your budget accordingly.

Land Costs in Arkansas

The cost of land in Arkansas varies depending on several factors, including location, accessibility, and zoning regulations. Typically, land prices in urban areas are higher than in rural locations. As of 2023, the average price per acre in Arkansas was approximately $3,200. However, it is crucial to note that this figure can fluctuate based on the factors mentioned earlier.

  1. Location: Proximity to amenities, such as schools, healthcare facilities, and shopping centers, can significantly impact land prices. Similarly, land with picturesque views or waterfront access may also command a premium.
  2. Accessibility: Well-connected parcels with access to major highways or public transportation may be more expensive than those with limited connectivity.
  3. Zoning and regulations: Local zoning laws and building regulations can influence land prices. For instance, land designated for residential use may have a different value than land zoned for commercial or agricultural purposes.

Construction Costs

Construction costs are a critical factor when building a house, with the cost per square foot being a common measure to compare costs. In Arkansas, the average cost per square foot ranges from $100 to $200, depending on the type of home, finishes, and other factors.

  1. Factors influencing cost per square foot: The complexity of the design, the quality of materials used, and the level of customization can all affect the cost per square foot.
  2. Average costs for different types of homes: Custom homes typically have the highest cost per square foot, followed by semi-custom homes and production homes. Additionally, single-story homes generally have a lower cost per square foot compared to multi-story homes.

Labor Cost

Labor costs play a significant role in construction costs. In Arkansas, hourly rates for construction professionals can vary depending on experience, skill level, and regional differences.

  1. Hourly rates for construction professionals: Labor rates can range from $15 to $45 per hour, with specialized trades such as electricians and plumbers commanding higher rates.
  2. Regional variations in labor costs: Labor costs can vary across different regions of Arkansas due to factors such as local supply and demand, and cost of living differences.

Material Cost

Material costs also contribute to the overall construction costs. Prices for materials can fluctuate based on factors such as supply chain disruptions, changes in demand, and regional variations.

  1. Commonly used materials in Arkansas: Some popular building materials include wood, brick, and concrete blocks. The choice of materials can significantly impact the final cost of construction.
  2. Prices for materials and their impact on overall cost: Material costs can account for a substantial portion of the overall construction budget. As such, any fluctuations in material prices can have a considerable impact on the final cost.

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

The average cost of building a house in Arkansas ranges between $225,000 – $500,000. The construction costs largely depend on the type of property, construction area, and customizations.

The cost of building a house in Arkansas can vary significantly based on factors such as location, size, design, and materials used. Below is a cost table that provides a general idea of the expenses associated with building a home in Arkansas:

Cost CategoryEstimated Cost Range
Land$3,200 per acre (on average)
Construction Cost per Square Foot$100 – $200
Labor Costs$15 – $45 per hour
Material CostsVaries based on materials used
Permitting and FeesA few hundred to several thousand
Site Preparation & Utilities$5,000 – $20,000+
Landscaping & Outdoor Improvements$3,000 – $15,000+
Home Furnishings & Appliances$5,000 – $25,000+
Insurance and TaxesVaries based on home’s value

Please note that the costs provided in this table are approximate and can vary depending on the specifics of your home-building project. It is essential to consult with professionals such as architects, builders, and financial advisors to obtain accurate estimates tailored to your needs.

To calculate the total cost of building a house in Arkansas, consider the following steps:

  1. Determine the cost of the land based on the location and size.
  2. Estimate the construction cost by multiplying the cost per square foot by the total square footage of the house.
  3. Calculate labor costs by estimating the total hours needed for construction and multiplying by the hourly labor rate.
  4. Factor in material costs, which can vary based on the materials chosen and market fluctuations.
  5. Add the costs for permitting and fees, site preparation, utility connections, landscaping, and outdoor improvements.
  6. Allocate a budget for home furnishings and appliances.
  7. Estimate ongoing costs, such as insurance and property taxes, to determine the long-term affordability of the home.

By considering these factors and using the cost table as a reference, you can better understand the costs involved in building a house in Arkansas and make more informed decisions during the planning and construction process.

Permitting and Fees

Building a house in Arkansas requires obtaining various permits and paying associated fees. The types of permits required and their costs can vary depending on the location and scope of the project.

  1. Types of permits required: Some common permits include building permits, electrical permits, plumbing permits, and mechanical permits. Additionally, some jurisdictions may require special permits for activities such as tree removal or environmental assessments.
  2. Costs associated with permits: Permit fees can range from a few hundred to several thousand dollars, depending on the project’s scope and complexity. It is essential to research and budget for these costs in the planning stage to avoid unexpected expenses.
  3. Impact of local regulations on building costs: Local building codes and regulations can influence construction costs, as they may require specific materials, designs, or construction methods that could impact the overall budget.

Financing Options

Various financing options are available for individuals looking to build a house in Arkansas, including construction loans, mortgages, and assistance programs for first-time home builders.

  1. Construction loans: These short-term loans are designed to finance the construction of a new home. Once the construction is complete, the loan is either converted to a traditional mortgage or paid off in full.
  2. Mortgage options: Conventional mortgages, FHA loans, VA loans, and USDA loans are popular financing options for homebuyers in Arkansas. Each loan type has different eligibility requirements, interest rates, and down payment requirements.
  3. Assistance programs for first-time home builders: Some programs, such as the Arkansas Dream Down Payment Initiative, provide financial assistance to first-time home builders, helping them cover costs such as down payments and closing costs.

Additional Costs to Consider

Building a house in Arkansas involves several additional costs beyond the cost of land, construction, and permitting. These expenses should be considered when budgeting for a new home project.

  1. Site preparation and utility connections: Clearing the land, grading, and connecting utilities like electricity, water, and sewer can add thousands of dollars to the overall cost of the project.
  2. Landscaping and outdoor improvements: Adding features like patios, decks, or retaining walls can increase the overall cost of the project. Additionally, landscaping costs can vary depending on the size and complexity of the design.
  3. Home furnishings and appliances: Purchasing furniture, appliances, and other household items can add up quickly. Be sure to budget for these expenses to avoid financial strain after the construction is complete.
  4. Insurance and taxes: Homeowners insurance and property taxes are ongoing costs that should be considered when building a house. These expenses will vary based on factors such as the home’s value, location, and insurance coverage options.

Cost-saving Strategies

There are several cost-saving strategies to consider when building a house in Arkansas, which can help keep the project within budget without sacrificing quality.

  1. Building energy-efficient homes: Incorporating energy-efficient features like solar panels, high-quality insulation, and energy-efficient windows can result in long-term savings on utility bills.
  2. Opting for prefab or modular homes: Prefabricated or modular homes can be more affordable than traditional stick-built homes. These homes are built off-site in sections and then assembled on-site, which can save both time and money.
  3. Utilizing reclaimed or recycled materials: Using reclaimed or recycled materials can help reduce the overall cost of construction while also being environmentally friendly.


Understanding the factors affecting the cost to build a house in Arkansas is essential for planning a successful home-building project. By researching land prices, construction costs, permitting fees, and other associated expenses, you can make informed decisions and better manage your budget.

It is also crucial to consult with professionals, such as architects, builders, and financial advisors, to obtain accurate estimates and guidance tailored to your specific needs. With thorough planning and research, you can build the home of your dreams in Arkansas without breaking the bank.

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