The Anatomy of a Home Build: A Detailed Cost Breakdown

Home Build Costs

To provide a transparent view of where your investment is allocated, it is helpful to look at the construction process through the lens of industry data. The National Association of Home Builders (NAHB) conducts regular surveys to determine the average cost breakdown for constructing a single-family home. This framework provides an authoritative guide to how a typical construction budget is divided among its various stages.

The following table adapts the NAHB's 2024 findings to illustrate how a hypothetical $1 million construction budget might be allocated. This demonstrates that the most significant portion of the budget is dedicated to interior finishes. These very elements make a home uniquely yours.

Construction Phase Percentage of Total Cost Description (What this includes) Example Cost (for a $1M build)

Interior Finishes 24.1% Insulation, drywall, paint, trim, cabinets, countertops, flooring, lighting, appliances, plumbing fixtures $241,000

Major Systems Rough-Ins 19.2% Plumbing, electrical, and HVAC systems installed within the walls $192,000

Framing 16.6% The home's structural skeleton, including walls, floors, and roof trusses $166,000

Exterior Finishes 13.4% Siding, brick/stone veneer, roofing, windows, and exterior doors $134,000

Foundations 10.4% Excavation, concrete pouring for slab, basement, or crawl space $104,000

Site Work 7.6% Building permits, impact fees, water/sewer fees, architectural and engineering plans $76,000

Final Steps 6.5% Driveway, decks/patios, landscaping, final cleanup $65,000

Other 2.1% Miscellaneous costs and builder overhead $21,000

Data Source: National Association of Home Builders (NAHB) 2024 Cost of Construction. Survey

Beyond the Build: Accounting for Soft Costs & Final Touches

A common pitfall in budgeting is confusing the "construction cost" with the "total project cost." The NAHB breakdown above covers the physical structure. Still, several other significant expenses must be factored in to see the complete financial picture. Failing to account for these can lead to budget overruns of 20% or more.

• Architectural & Design Fees: As noted earlier, these fees typically account for 5% to 15% of the construction cost in the total project budget.
  

• Permits & Fees: In Georgia, a comprehensive permit package, including building, HVAC, plumbing, and electrical components, can range from $1,500 to over $5,000, depending on the jurisdiction.
  

• Utility Hookups: Connecting to public utilities is a substantial and often overlooked cost. In Fulton County, for example, the installation of a new water meter and the associated capacity fee for a standard residential home can approach $4,000. Connecting to the sewer system can add thousands more.
  

• Landscaping & Exterior Features: The "Final Steps" category in the NAHB budget covers basic landscaping. However, a comprehensive landscape design with irrigation, mature plantings, and hardscaping (such as patios, walkways, and retaining walls) can easily range from $20,000 to $30,000 or more. High-end features like a swimming pool are a separate, significant investment, typically costing between $60,000 and $200,000 in Georgia.
  

• The Contingency Fund: A responsible budget's most critical component is a contingency fund. Setting aside 5% to 10% of the total construction cost provides a necessary buffer for unforeseen site conditions, material price fluctuations, or desired upgrades that arise during the build.The Georgia Crossroads: A 2025 Analysis of Building vs. Buying
  

One of the first decisions a prospective homeowner faces is whether to build a custom home or purchase an existing one. A surface-level financial comparison often favors buying. The median home price in Georgia is approximately $324,000 to $375,000. In contrast, the starting point for building a new home of a similar size frequently begins at $400,000 or more, excluding land costs.2 In a premium market like Sandy Springs, the median sale price for an existing home is even higher, hovering around $670,000 to $687,000.50

However, this simple comparison overlooks the crucial concept of Total Cost of Ownership. The "savings" realized by purchasing an existing home are often an illusion, deferred into future expenses that a new custom home avoids.

• Energy Efficiency: A new home constructed to 2025 energy codes, featuring high-performance windows, advanced insulation, and a modern HVAC system, will have significantly lower monthly utility bills than an older home with dated systems.
  

• Lower Maintenance Costs: In a new custom home, every component—from the roof and appliances to the water heater and HVAC system—is brand new and covered by warranty. This eliminates the risk of sudden, significant replacement costs for a decade or more, an everyday reality for owners of older homes.
  

• Complete Personalization: Building Custom avoids the "renovation tax." Buyers of existing homes often spend tens of thousands, or even hundreds of thousands, of dollars on renovations to tailor the space to their needs. A custom build incorporates these preferences from the outset, ensuring the home is a perfect fit from the very beginning.
  

• Health and Technology: New homes are built with modern, healthier materials that have low or no volatile organic compounds (VOCs). They can also be designed and pre-wired for seamless integration of smart home technology. This feature is often difficult and expensive to retrofit into an older structure.

When viewed over a 10-year horizon, the financial case for a new custom home becomes much more compelling. The initial investment is front-loaded, leading to a decade or more of predictable, lower operating costs, greater comfort, and a home that perfectly aligns with one's lifestyle.

Building for Tomorrow: Maximizing Value and Return on Investment (ROI)

A custom home is more than a place to live; it is a significant financial asset. By making strategic choices during the design and build process, you can create a home that not only meets your needs today but also represents a wise long-term investment. Data on renovation ROI provides clear guidance on which features are most valued in the Georgia market.

• High-ROI Features for the Georgia Market:

• Kitchens and Bathrooms: These spaces consistently deliver the highest return on investment. Studies show a minor kitchen renovation can recoup over 98% of its cost, while a bathroom remodel can exceed 100% ROI.52 In a custom build, these spaces can be perfected from the start, incorporating highly desirable features like professional-grade appliances, quartz or granite countertops, and luxurious primary suites that are major selling points for future buyers.
  

• Curb Appeal and Outdoor Living: First impressions are paramount. A striking entry door, quality siding, and thoughtful landscaping can yield returns of over 90%.52 Given Georgia's favorable climate, well-designed outdoor living spaces, such as decks and patios, are highly valued and effectively extend the home's usable square footage.
  

• Energy Efficiency: Modern buyers are increasingly sophisticated and prioritize long-term value. Features like ENERGY STAR-rated windows and superior insulation are not just talking points; they translate into tangible monthly savings and are highly sought after.
  

• Flexible Space: The way we live is evolving, and homes that can adapt to our changing needs are increasingly valuable. Adding functional square footage through a finished basement or creating a dedicated home office directly increases a home's appraisal value and appeals to a broader range of buyers.
  

Interestingly, the data reveals that innovative, high-quality design often provides a better return than sheer extravagance. A "minor" kitchen renovation, for instance, has a higher ROI (98.5%) than a "major upscale" one (91%). This indicates a point of diminishing returns, where the most financially prudent choices are those that enhance the core living experience—functionality, comfort, and efficiency—rather than those that are simply the most expensive.

Your Vision, Our Expertise – The Reynard Commitment

Building a custom home in Georgia is an investment in your future, a complex yet advantageous process. As this guide has shown, the final cost is not a single number but a spectrum, shaped by a series of thoughtful choices regarding location, architectural design, material selections, and the quality of craftsmanship. Actual value is found not in chasing the lowest per-square-foot price, but in understanding how these elements combine to create a home that is both personally fulfilling and financially sound.

At Reynard Custom Homes, we see our role as more than just a builder. We are the master conductors of this intricate process, your trusted partners in bringing your vision to life. We bring transparency to the budget, expertise to the design, and an unwavering commitment to quality on the construction site. Our process is built on collaboration and communication, ensuring that every decision is made with clarity and confidence.

Your vision for a home is unique. The process to build it should be just as considered. Contact Reynard Custom Homes today to begin a conversation about transforming your dream into your address.