When you finally decide to build a new home, it’s important to plan and budget for it. You’ll want to make sure you have enough money saved so you can afford the location, materials, floorplan, and upgrades that you desire. Use this house-building budget guide to learn how much you’ll need to save and the steps you’ll need to take to achieve your financial goals. 

Start with a strong financial foundation 

First, begin by getting your finances in order. Your emergency fund should cover six months of expenses, separate from your homebuilding budget. This will give you a safety net during construction and protect you from unexpected life events. 

Remember that paying down debt before starting your build will give you more flexibility with construction financing. It will also help you qualify for better interest rates. 

Speaking of financing, construction loans work differently from traditional mortgages, although they generally convert to a standard mortgage once the build is completed. Here’s what you need to know: 

• Plan for a down payment of at least 10% 
• Keep monthly payments under 25% of your household’s take-home pay 
• Consider both 15- and 30-year mortgage terms 

These guidelines will help you create a solid financial foundation for your new build (pun intended!).  

Keep land costs top of mind 

In Pennsylvania, land averages between $30,000 to $45,000 per acre in 2025, although the number varies by location and zoning. You’ll want to consider how big of a yard you’d prefer and where you’d like your home to be. Depending on the area and amenities surrounding it, lot prices can be steep. 

The great news is that Berks Homes allows you to build on your own land. Have a special place in mind that suits your budget? We can help bring that home to life! 

Don’t forget about construction costs 

In Pennsylvania, total build costs typically range from $350,000 to $750,000 in 2025. This translates to anywhere from $200 to $320 per square foot, to $320 or even $450+ per square foot for custom homes with high-end finishes.  

During construction, you should also set aside 10-15% of your budget as a contingency fund for unexpected expenses, as some construction projects experience weather delays or material price changes.  

 And of course, you’ll want to save for the following: 

• Foundation  

     Excavating, adding retaining walls, etc. 

• Framing  

     The framework that holds up your roof 

• Interior and exterior finishes  

     Anything from insulation and drywall to windows and doors  

• System installations  

     Your heating, cooling, plumbing, and electric systems 

By working with a home builder like Berks Homes, you can access the best construction deal possible when building a home in Pennsylvania! From labor to material costs, we give you options that reflect your needs and budget. 

Let’s talk about PITI 

Are you familiar with PITI components, or principal, interest, taxes, and insurance? These are a critical part of your ongoing housing costs.  

Research local tax rates early, as they vary by location. Set aside funds for move-in expenses like furniture, window treatments, and landscaping. Planning for these additional costs from the start helps prevent financial strain later. 

Prioritize your options 

As you start thinking about what your home will look like, try to map out what you can’t live without, what you’d like included, and what you definitely don’t want. This will help you make well-thought-out choices when creating your homebuilding budget. Consider some of these questions to get you started: 

• Do you want to build a house in a development or community? 
• Do you need a flat yard or are hills acceptable? 
• How much room do you need around your home? 
• What should your home floor plan look like? 
• What kind of outside living spaces do you want? 
• How big should the garage be? 
• How many bedrooms and bathrooms do you need? 
• Are there any specific materials or features you’d like to incorporate? 

Note that our Selection Gallery includes materials such as hardwood flooring, tile, cabinetry, and carpet options. As you consider your options, our Gallery Specialists will assist in keeping your selections within your budget. 

 When creating your budget, focus first on your home design's structural necessities (size, stories, etc.). Then, whatever is left in your budget can be allocated to design features and upgrades, such as a gourmet kitchen with an island or a peaceful sunroom addition. 

Partner with Berks Homes on your new build 

Now that you understand the budgeting process for your new home, it’s time to implement those plans. At Berks Homes, we specialize in building high-quality homes that deliver lasting value for Pennsylvania families. Our experienced team will guide you through every step of the process and ensure that your new home stays within your carefully planned budget. 

 Are you ready to get started? Our Online Sales Consultants, Kelly & Chastity, are here to answer any questions.  

For more details, you can also contact the Berks Homes Realty team at 484.772.2693