Building a custom home in Atlanta can cost anywhere from $400,000 to $1,000,000. But the final amount depends on several different factors. From the size of your land, to location, and everything in between. We’re breaking down all cost factors so you can make an informed budget when building your custom home in Atlanta. For this blog, we’ll assume a 2,000 square foot home.
If it’s your first time building a custom home, it can be overwhelming to say the least–no matter where you build. But constructing a budget will be much easier after knowing all the associated costs. You should have a rough idea of your budget before you call a contractor, that way you aren’t shocked by their estimates.
Skip To A Section:
- Is It Cheaper To Buy Or Build A Custom Home?
- What Makes Up The Custom Home Cost In Atlanta?
- Custom Home Cost: Georgia Vs. National Average
- Can You Build A Custom Home For $300K?
- How Do You Finance Building A Custom Home In Atlanta?
- Budgeting For Your Custom Home Build
Is It Cheaper To Buy Or Build A Custom Home?
Buying a custom home that’s already on the market will always be cheaper than building. It’s also faster to get the keys to your new home when buying–around 1-2 months–compared to waiting an additional 10-12 more months for a custom home build.
However, building your own custom home comes with many benefits. As they say, good things come to those who wait. For a full breakdown of the pros and cons (outside of just the cost) of buying vs. building a custom home in Atlanta, check out this blog post.
What Makes Up The Custom Home Cost In Atlanta?
When building a property from the ground up, there are a ton of moving parts that make up the custom home cost in Atlanta. Here’s what you’re paying for, and typical ranges depending on the type of build you’re going for (mid-range to luxury). Assume a 2,000 square foot home.
Home Size & Design Complexity
Square footage and layout are fundamental drivers of cost. A larger or more architecturally complex home will cost more to build. Keeping the design simple (fewer complex angles, standard rooflines) can help keep costs lower. For a better look at the different types of homes you can build, each with varying levels of complexity, check out this blog post.
Land Acquisition
Buying a suitable lot is a major expense outside of construction. Land prices in Georgia vary widely by location. In the Atlanta area, an acre of land averages around $30,000 (though smaller lots in prime neighborhoods cost much more). If you already own the land, you basically save this portion of the budget.
Also budget for site preparation (a necessary cost that most homeowners don’t think about), which typically adds another $1,500–$3,000 in the Atlanta area. This can include clearing, grading, utility hookups, etc.
Permits and Fees
Before construction begins, you’ll need to get building permits and pay various fees. In Atlanta, a general building permit for new home construction might cost on the order of $1,000–$2,000, with additional permits for HVAC, plumbing, and electrical systems adding a few hundred dollars each.
Exact permitting costs depend on the city/county and the home’s size and value, often calculated at a few dollars per $1,000 of construction value) In total, several thousand dollars in permit fees is a common part of the custom home cost in Atlanta. Contractors will apply for the permit on your behalf, but it’ll ultimately add to your total.
Design and Soft Costs
“Soft costs” refer to non-physical construction expenses like architectural design fees, engineering, surveys, and insurance. These costs often make up 10%–20% of the construction budget. For a custom home, you may hire an architect to draw up plans (architect fees typically range from 5% up to 15% of the project cost, depending on complexity). Some contractors offer architectural services so you won’t have to find one on your own.
Engineering (structural, HVAC design) and any required inspections/approvals also fall in this category. These upfront investments ensure the home is properly planned and complies with codes. (Note: Some soft costs like design are not always itemized in builder estimates, but they will impact the total cost.)
Foundation
The foundation cost depends on the site and foundation type (slab-on-grade, crawlspace, or basement). In Atlanta, concrete slab foundations run roughly $5.60 per sq ft for a basic 4” slab or $7.50 per sq ft for a thicker 6” slab.
For a 2,000 sq ft home, that implies on the order of $11,000–$15,000 for a slab foundation. If you want your custom home to have a basement, costs are higher. Difficult soil or terrain (e.g. requiring retaining walls or special footings) can also increase foundation expenses, depending on where you build.
Structural Framing
Framing is essentially the skeleton of the house (floors, walls, roof structure). This is typically one of the largest single cost components, often around 15% of total construction cost. For an average 2,000 sq ft home, framing (materials + labor) can easily be tens of thousands of dollars ($40k–$60k). Actual framing cost depends on lumber prices and design complexity (complex rooflines or extra corners and angles require more labor and materials).
Exterior (Roofing, Siding, Windows & Doors)
These exterior finish materials protect your home from mother nature, who can be exceptionally harsh (and moody) in Georgia.
- Roofing for a 2,000 sq ft home might cost around $8,000–$12,000 in Atlanta for an asphalt shingle roof with metal or tile roofs cost more.
- Siding costs vary by material – vinyl siding (most common) ranges about $2–$7 per sq ft installed, while wood siding is about $3–$10 per sq ft and fiber-cement or brick can be higher. For a 2,000 sq ft one-story home, you might have ~2,000–2,500 sq ft of siding area, so siding could be on the order of $5,000–$15,000.
- Quality windows and exterior doors also add significant cost: standard vinyl windows might total a few thousand dollars for the whole house ~$500–$700 per window installed, while high-end wood or fiberglass windows/doors cost much more.
Overall, expect perhaps $15,000–$30,000 for the combined exterior finishes (roof + siding + windows/doors) for a mid-range 2,000 sq ft build.
Major Systems (Plumbing, Electrical, HVAC)
The essential mechanical systems may be boring, but power your home. Which means they account for a notable share of the budget.
- Plumbing installation for a new 2,000 sq ft house, (pipes, sewer line, fixtures hookup) typically costs around $10,000–$15,000
- Electrical wiring and panels for a house that size might also fall in a similar range (perhaps $8,000–$15,000, depending on the number of outlets, lighting features, and any special systems).
- The HVAC (heating, ventilation, air conditioning) system installation can range widely from around $1,500 up to $12,000+ depending on the type of system and home size – likely in the mid-to-high thousands for a typical central HVAC in a 2,000 sq ft home.
Interior Finishes
The interior is a big chunk of the custom home cost in Atlanta. This category covers everything that makes the inside of the house livable and beautiful – drywall, insulation, flooring, cabinets, countertops, painting, trim, light fixtures, and all the fun details that form your home’s charm. Interior finishes are highly fluctuating in cost, based on the level of quality (mid-range vs. luxury) and your design selections.
- For a mid-range custom home, drywall and insulation for 2,000 sq ft might cost on the order of $10,000 or more.
- Flooring could range from a few dollars per square foot for basic carpet or vinyl to tens of thousands total if using extensive hardwood or tile – for example, basic carpet might be $2 per sq ft, whereas nice hardwood flooring can be $10–$18+ per sq ft. That means flooring for the whole house could be anywhere from ~$4,000 (cheap carpet throughout) to $20,000+ (hardwood or tile).
- Kitchens and bathrooms are typically the most expensive interior areas: cabinets, countertops, and fixtures can vary hugely. A basic bathroom in Atlanta might be done for $1,800, whereas a high-end spa-like bathroom could cost $25,000 or more.
- Custom kitchen cabinets and stone countertops will add significantly compared to stock materials. Overall, for a 2,000 sq ft home, a mid-level interior finish budget might be on the order of $70,000–$100,000.
Upgrading to luxury finishes (premium cabinetry, upscale appliances, designer lighting, etc.) can easily add tens of thousands more. This is where “mid-range” vs “luxury” really impacts the total cost: high-end custom finishes can double or triple certain line items, which is why an upscale custom home might cost $300–$400+ per sq ft, while a basic build might be $150 per sq ft or less.
“Soft” Outdoor Costs
Don’t forget exterior landscaping and other outdoor items. This includes all the pretty things on the outside of your home. Finishing a home often involves building a driveway, walkways, decks or patios, basic landscaping, and so on. These outdoor finish costs can cost around $20,000-$60,000 depending on how much landscaping you want done, the materials and size of your deck, if you want a pavilion or pool, etc.
General Contractor Fees & Overhead
When you hire a builder/general contractor to manage the project, the builder will add a service fee, naturally. This is typically 10%–20% of the construction cost (sometimes a bit more in high-demand markets). The contractor’s fee is often built into the per-square-foot cost quoted.
Contingency
Finally, if you’re smart, set aside a contingency reserve for unexpected costs or changes during construction. It’s recommended to add about 10%–20% of your construction budget as a cushion and general rule of thumb. This covers any cost overruns, upgrades you decide on or change mid-build, or surprises like site issues or material price fluctuations. If all goes well, not all of this contingency will be spent – but it’s safer to budget for it. For example, on a $400k construction budget, a 10% contingency would be $40k set aside for flexibility.
To recap, the total cost is made up of these factors:
- Home Size & Design Complexity
- Land Acquisition
- Permits and Fees
- Design and Soft Costs
- Foundation
- Structural Framing
- Exterior (Roofing, Siding, Windows & Doors)
- Major Systems (Plumbing, Electrical, HVAC)
- Interior Finishes
- “Soft” Outdoor Costs
- General Contractor Fees & Overhead
- Contingency
Yeah… it’s a lot. But it’s better to know them now then learn about them when you start collecting estimates!
Custom Home Cost in Atlanta vs. National Average
Is building a house in Georgia cheaper or more expensive than the U.S. average? If you aren’t dead set on moving to Atlanta just yet, here’s how the cost of a custom home build in Georgia compares to the national average:
The cost per square foot for a newly built home in Georgia can range from $160 – $280. While the national average cost to build a new home in 2024 was around $162 per square foot. Note: This doesn’t factor in contractor fees.
While it seems like Georgia is much more expensive compared to the rest of the U.S. it all depends on the size of your home and the complexity of your build. When you think of a custom home, you might think of a luxury modern multi-family home, while to other homeowners they just think of a simple single family ranch. The levels of size and complexity changes the range across states. Get a state by state breakdown here.
Can You Build A Custom Home For $300K?
A $300,000 budget to build a custom 2,000 square foot home in Atlanta can be possible, but it will require a lower end build and more careful planning to fit the budget. At 2,000 sq ft, $300k as a custom home cost in Atlanta equates to $150 per square foot. This is about the minimum you can expect for a mid-range new construction in today’s market. Do-able if you stick to mid-level finishes and a straightforward design.
How Do You Finance Building A Custom Home In Atlanta?
Financing the construction of a custom home is different from getting a mortgage on an existing house. For first-time builders, it’s important to know your options, as you generally can’t use a standard home loan to build a house from scratch.
Here are typical financing methods for a custom build:
Construction-to-Permanent Loan (One Loan, One Closing)
This is the most common option for Atlanta homeowners building a custom home. Think of this like a “starter loan” that becomes a normal mortgage when your house is done.
- The bank gives you money in pieces (called draws) as your builder finishes each stage (foundation, framing, roof, etc.).
- While your house is being built, you only pay interest on the money that’s been used so far—not the full loan.
- Once the house is finished, the loan automatically turns into a regular mortgage (15– or 30–year).
The biggest perk? Only one closing, which means fewer fees and less paperwork.
Construction-Only Loan (Two Loans, Two-Closings)
Here, you first get a short-term loan that covers the build. Once the house is complete, you take out a separate mortgage to pay that loan off.
- You’ll have to close twice (which means two sets of fees).
- Some people choose this because it gives flexibility—they can shop around for the best mortgage rates while the home is being built.
- But for most first-time builders, this is more complicated than it’s worth.
Low Down Payment Options (FHA or VA Loans)
Most banks want a 20%–25% down payment on construction loans. On a $400k home, that’s $80–100k upfront. But there are government-backed programs that make it easier:
- FHA One-Time Close Loan – as little as 3.5% down if you meet FHA requirements (loan limits apply in Georgia, usually up to ~$498k).
- VA Construction Loan – for veterans and active-duty military. These can go as low as 0% down, sometimes up to $1.5M in GA.
These loans work the same way (draws during construction → permanent mortgage after), but with less cash needed upfront.
Other Options
- Home Equity Loan or Line of Credit – if you already own a house with equity, you might borrow against it.
- Builder Financing – some builders finance the home themselves and sell it to you as a finished product, though this is more common in subdivisions than truly custom homes.
- Personal Loans or Cash – rare, but some homeowners use savings or smaller loans to cover part of the build.
Budgeting For Your Custom Home Build
Now that you know the cost difference between building and buying, the factors that make up the total cost of your build, how Georgia’s custom home cost compares to the rest of the U.S., and how to finance your custom home build, you’re all set to start forming your budget! To do this, go through the cost factor section of this blog and determine the desired sizes, materials, finishes, etc. Now you can make realistic decisions knowing the price range for each.
And when you have your rough budget ready to go…
Call on Midtown Builders Group to take your plans and turn them into your new home. We’ve been building exceptional homes of all styles and sizes for over 25 years, and are the best home builders in Atlanta. Building your first home is a huge milestone – let us help you get there. If you dream it, we can build it.
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