Average Cost to Build a House in TN

Share this

Cost of land in tennessee.

Tennessee is the state famed for the origin of the tow truck, and it offers numerous well-known cities in which to reside. Tennessee is also popular for its country music events as well as its classic blues culture. If you enjoy bluegrass, country, or rock ‘n’ roll, you’ll be pleased to learn that the cost of living in Tennessee is rather affordable.

Since it is a southern state, it is one of the most expensive areas to build a house. Building a house in the southern United States will cost you roughly $110.19 per square foot.

In this article, we’ll look at the various aspects of building a house in Tennessee. We will strive to give you a home prices breakdown in TN; the permit and building fees, as well as the average cost to build a house in Tennessee.

Land Costs in Tennessee

An acre of land in Tennessee was valued at $14,400 on average, somewhat more than the $12,100 per acre in the lower 48 states. Tennessee, like other states, derived a considerable percentage of its value from developed land, while accounting for less than 10% of the state’s territory.

The average acre of Tennessee land is worth $14,400 statewide, but it all depends on location. According to FindAnyAnswer.com, the average sale price for a 251,911-square-foot property in one of Unicoi County’s finest areas is $59,408.

>> If you have land that you need to sell, we buy land in Nashville and Knoxville.

Permit Costs to Build a House in Tennessee

In Tennessee, building permits are usually required if you enlarge, build, remodel, repair, relocate, or demolish a structure. Interior renovation and the installation of minor ancillary constructions such as decks and detached garages are included. 

If the work goes beyond the most basic repairs, electrical, mechanical, and plumbing work will also need a construction permit. Painting and carpeting are common examples of finishing work that does not need a construction permit.

Building permits in Tennessee are typically given by the local Building and Codes office in the city where your project will be located. Permits are issued by the county office in unincorporated regions instead. In any case, the procedure is nearly the same.

Cost Breakdown for Residential Building Permits

Construction CostFeeAdditional Charges for HVAC Inspection and Plumbing 
$0 to $5,000$100$100
$5,001 to $100,000$350$100
$100,001 to $150,000$400$100
$151,001 to $200,000$450$100


*When the slab and footing are cast separately, a slab other than Monolith Pour inspection is necessary. 
**All new construction requires an HVAC and Plumbing Inspection.
***The construction cost cannot be less than $60.57 per heated square foot.

Building Costs to Build a House in Tennessee

The real cost of building a house in Tennessee is determined by a variety of factors. The decisions taken during or before construction have an impact on the cost of building a house.

1. The cost of building materials
The most crucial component in deciding the cost of your house will be the materials you choose. The greater the price of materials, the higher the cost.

For example, you will need to employ timber, concrete, and other materials. Your expenses will largely be determined by the size of your house and the quality of materials used. Material prices often account for 30% to 50% of your total budget.

Request Your FREE Cash Offer Today!

Fill out the form below or call us at (865) 999-0025 for your FREE cash offer!

2. Labor charges
The cost of labor will be determined by the number of workers you employ and their skill level. If you want to complete your job in a shorter time, you must use more labor than normal. This will dramatically boost your labor costs.

Managing labor costs is a difficult task in the construction industry. They have the potential to become unpleasant if not adequately handled. The average hourly wage for a construction worker in Tennessee is $15.32. You may strike a decent balance by adjusting the quantity of time required and the workforce you hire.

When planning your new house, don’t forget to budget for interior finishes, painting, electrical work, plumbing, and other expenses.

Electrician$45 to $120 per hour
General contractor10% to 30% markup
Plumber$50 to $140 per hour
Framing$3,500 to $35,000
Drywall$30 to $60 per panel
Wiring  $1,500 to $10,000
Flooring$2 to $45 per square foot
Concrete foundation$4 to $7 per square foot
Roofing$4,700 to $9,200

3. Finishing costs
The level of finish you choose can have a significant impact on the amount you pay. On top of other building expenditures, base-level finishings start at an average price of $90 per square foot.

However, if you add marble countertops, wood flooring, high-end appliances, and chandeliers, the price might increase. A two-story home may cost more than a one-story home if you want a second level.

Midrange homes are somewhat finer than basic residences and cost significantly more as a result. Expect to pay an extra $100 to $120 per square foot for construction.

Finishing levelIncludesCost per sq. ft.
StandardStandard bathroom fixtures; carpeted bedrooms; tiled entryways; standard ceiling light fittings; hardwood in the main living spaces; lap siding or stucco; basic roof materials$175 to $262
Midrangeenergy-efficient windows; recessed lighting; improved bathroom fixtures and finishes; high-quality hardwood floors; superior appliances and worktops; stone embellishments on the outside$275 to $310
High-endAutomation, such as shades and speakers; heated floors; marble or chiseled stone bathrooms; lit driveways; stone façade; bespoke molding and baseboards; professional landscaping shingles for slate roofs; costly glass$525 to $1,110

4. Fees for architecture and design
In Tennessee, architects charge an average of $6,565 for labor and supplies, while contractors charge between $6,200 and $7,750 for their services. This is more than the $5,665 national average (based on HomeAdvisor cost estimates).

The above-mentioned sum comprises the typical labor cost for hiring an architect, material costs and equipment, as well as any project expenditures and cleanup fees. Furthermore, interior design services range in price from $4,201 to $6,468 per hour, or around $50 to $200.

5. Other critical factors
If you have a good site, you won’t have to spend too much money, but occasionally, sites are in poor condition and require significant investment to adapt them for the development process.
The cost of interior and exterior finishing is determined by the grade of materials used to adorn your home. 

Average costs to build a house.

Average Cost to Build a House in Tennessee

According to the most recent statistics available from the National Association of Home Builders, the average cost to build a (single-family) home is $296,652 or $114 per square foot. The cost per square foot has risen through time:


Nationally, the home building costs per square foot range from $100 to $160. However, prices might vary by area. Building a new house in the South is far less expensive than building in the West or Northeast.

A 2,000-square-foot new home construction costs between $201,000 and $310,000 on average. Since new-construction homes are often priced based on square footage, a larger home will cost more.

Here are three sample house construction projects as a glimpse of the cost of home construction in the Tennessee region for projects of varying square footage. Plumbing and electrical are included in all of these prices.

Square footagePriceIncludes
A 1,000-square-foot starter house$149,000 Three bedrooms, three bathrooms, two-car garage, entry-level linoleum flooring and carpet throughout; refrigerator, new stove, microwave, and dishwasher; paint, cabinetry, and all finished work
1,400-square-foot comfort resident$219,000 (built on spec)Three bedrooms, two bathrooms,12-foot ceilings, spacious two-car garage,  high-end fixtures, and all finish work; all exterior and interior paint; little front porch and tiny rear patio
1,700-square-foot green home$240,000 (custom home with upscale finishes)Four bedrooms (plus a bonus room over the garage), two-car garage, three full bathrooms, walkout balcony on the top floor of the master bedroom; window installations and special sheetrock required for Energy Star rating; stainless-steel appliances, including convection microwave, stove, and oven; all paint, flooring, and finishing

If you’d like to learn more about the Tennessee real estate market, you can check the home prices breakdown in TN.


Due to nationwide variations in material availability, the overall cost of constructing a new home in Tennessee might average $130.97 per square foot or approximately $327,425 for a typical-sized single-family home. This is more expensive than the current national average of $287,466.

However, pricing may vary depending on factors like the grade of materials utilized, square footage, location, and the property tax in TN. In addition, there are expenses for site fees, house plans, permit fees, and other special elements, as well as foundation, framing, plumbing, flooring, and roofing.

Hiring a skilled contractor initially can help you save money. Builders understand how different design and finish choices affect the final cost, and they will work with you to keep your dream home within your budget. 

If you’re wondering how you can sell your house fast in Nashville, we can help. In addition, we are also cash home buyers in Knoxville. We take the stress and hassle out of selling your home. Reach out to us today and let us sell your house fast and easy!

Get an all cash offer on your home