If you’re thinking of skipping the auction stress and building your own place instead, you’re not alone. Thousands of Aussies are choosing to start building their own home, but one of the first questions on everyone’s mind is: how much is it going to cost?
The reality is, there’s no simple answer. The price tag depends on everything from home design to the site you’re building on. Here’s what’s really impacting the cost in 2025, and how to avoid nasty budget-draining surprises.
Bigger Houses, Bigger Budgets
You’ve most likely seen it yourself—Australian homes are getting much bigger. In the 1950s, the average home was 100m². Now? We’re looking at more than double that, with the average home at 236². That’s a lot of house, and more square metres means more materials, more labour, and more money.
If you’re going with big multiple bedrooms, extra bathrooms or that home cinema you’ve always dreamed of, just keep in mind, every square metre adds to your final bill. You don’t have to go small, but you do need to be smart.
Cost Over Quality
When you’re looking to save money, it can be tempting to take some money out of materials costs. Sure, going for budget materials will save you money, but those savings might not last long. Cheap finishes can wear out quickly, with more repairs or replacements later on that can blow out your budget.
A better approach? Be upfront with your home builders about what you can realistically spend. They’ll help you choose quality finishes that won’t break the bank—or fall apart after five years.
At the end of the day, this is your home—try to do it right the first time.
Site Costs
If your block of land is sloped, rocky, remote or just plain tricky to navigate, you’ll need extra gear, labour and time to get the build underway.
Planning overlays, council regulations and restrictions can also bump up the price, sometimes before construction even begins. If you’re looking for house and land packages in new estates, you may be able to avoid these headaches. With house and land packages in NSW, WA house and land packages or house and land packages in QLD—there are fewer surprises and more builder-friendly blocks.
Timeframe
Post-pandemic supply chain delays haven’t completely disappeared. Materials can take longer to arrive, and skilled trades can be hard to pin down. And when your build gets held up, it’s not just frustrating—it can be extremely expensive.
Holding costs, storage fees, they all start to stack up—and that’s before you factor in builders having to wait to start construction. Before you start building, make sure you have a realistic timeline. The more prepared you and your builder are, the less stress (and loss of budget) you face.
Complex Design
A custom floor plan with skylights, vaulted ceilings and fancy finishes—it might be gorgeous, but it’s not cheap.
The simpler your layout, the smoother (and faster) your build. That’s why so many people choose a volume builder who offers ready made plans at lower prices. If you’re choosing one of those, keep in mind that any added upgrades—more storage, nicer benchtops—will add to your total.
Want something truly your own? A custom builder will give you the freedom to start designing from scratch, but the cost will be higher, and timelines will stretch. It all comes down to what matters most to you.
Added Expenses
Sometimes when we get swept up in the excitement of planning, we can forget that landscaping, fencing, pools and council costs aren’t included in the overall building budget.
These extras can add thousands to your final bill if you don’t plan ahead, so always ask what’s included (and what’s not) before signing anything.
Building Your Dream Home in 2025
While prices vary depending on location and build, the average cost to build a house in Australia ranges between $620 and $3900 per square metre—all before landscaping, permits and upgrades.
That’s why it’s so important to work with home builders who are honest about costs upfront. If your builder isn’t transparent with costs, it might be time to look elsewhere.
Have a budget in mind? Chat with our Green Homes experts for a quote breakdown—and see how we can help create the home you’ve always wanted.