What Actually Drives Construction Costs
(And What Matters More Than Most People Think)
When people ask, “How much does it cost to build a house?” the honest answer is: it depends—mostly on decisions you control.
At Peer House Design, we work with homeowners and builders every day who are trying to balance design, budget, and long-term value. The biggest misconception? That square footage alone determines cost. In reality, a handful of design and site choices drive construction costs far more than size.
Here’s what truly affects the cost to build—and how to make smarter decisions early.
1. Complexity Beats Size (Almost Every Time)
A larger, simple house often costs less than a smaller, complicated one.
Cost-driving complexity includes:
Multiple rooflines and valleys
Irregular footprints and bump-outs
Numerous corners and jogs
Tall walls and stacked structural elements
Simple shapes are faster to frame, easier to insulate, and require less labor—saving money across multiple trades.
2. Foundation Type and Site Conditions
Your land can significantly impact your budget before construction even begins.
Major site-related cost drivers:
Sloped or uneven terrain
Rock, clay, or poor soil conditions
Walkout basements vs. slab-on-grade
Retaining walls and extensive grading
Choosing a house plan that fits the land—instead of forcing the land to fit the plan—is one of the smartest ways to control costs.
3. Roof Design and Pitch
Roofs are one of the most underestimated cost variables.
Costs increase with:
Steeper pitches
Multiple roof intersections
Dormers and decorative elements
Complex truss or framing requirements
A clean, well-proportioned roof not only saves money—it often looks better and ages more gracefully.
4. Window Quantity, Size, and Placement
Windows affect more than just aesthetics.
Large windows, custom sizes, black frames, and extensive glass walls can dramatically increase costs—not only in materials, but also in framing, flashing, and energy performance requirements.
Strategic window placement delivers light and views without overbuilding.
5. Structural Systems and Spans
Open floor plans are popular—but they come with structural implications.
Cost increases with:
Long, unsupported spans
Steel beams or engineered lumber
Cantilevers and double-height spaces
Good design balances openness with efficiency, using structure intelligently rather than excessively.
6. Finishes and Material Transitions
Finishes are where budgets most often spiral.
Watch for:
Multiple exterior material changes
Custom interior trim profiles
High-end flooring throughout
Specialty fixtures and hardware
Consistency and restraint go a long way. Fewer materials—used thoughtfully—often feel more intentional and timeless.
7. Mechanical Systems and Energy Strategy
Heating, cooling, and energy efficiency decisions have both upfront and long-term cost impacts.
Factors include:
Home layout and duct runs
Ceiling heights and volume
Window performance
Insulation strategy
Designing with mechanical efficiency in mind can reduce system size, installation cost, and long-term operating expenses.
8. Labor Availability and Regional Factors
Construction costs aren’t the same everywhere.
Regional labor availability, trade demand, and material access all affect pricing. A plan designed with buildability in mind performs better across markets and builder teams.
The Biggest Cost Lever Most People Miss: Early Design Decisions
The earlier you make informed choices, the more control you have.
Small design changes during planning can save tens of thousands during construction. Late changes almost always cost more.
That’s why we emphasize:
Simple, efficient floor plans
Thoughtful structural layout
Site-responsive design
Timeless detailing over trends
How Peer House Design Helps Control Costs
Our house plans are designed to:
Balance beauty and efficiency
Reduce unnecessary complexity
Adapt to real-world sites
Provide clarity for builders and clients
Smart design doesn’t mean sacrificing quality—it means spending money where it matters most.
Build Smarter From the Start
Explore our collection of thoughtfully designed house plans—or reach out if you want help choosing a plan that aligns with your budget, land, and long-term goals.
Good design saves money. Great design saves regrets.