Cost of Building a Custom Home

When planning your dream custom home, it’s important to remember that the cost goes far beyond the basic structure. Many future homeowners underestimate the full scope of expenses, which can lead to budget overruns if not carefully planned.

From the size and style of your home to the location of your lot and the finishes you select, numerous factors will impact your final investment. Having a solid understanding of these variables upfront will help you create a more accurate budget and reduce surprises along the way.

This updated guide provides a clear look at the 2025 costs of building a custom home in Delaware and Maryland, while also referring to 2022 data to give you perspective on how prices have changed.

National and Local Cost Averages: Then and Now

In 2022, the national average cost to build a new home was approximately $284,057, with typical project costs falling between $119,412 and $449,159. However, by 2025, that average has climbed to around $348,000, with most builds ranging from $145,000 to $550,000, depending on the region, home size, and design preferences.

In Delaware and Eastern Shore Maryland, the average cost of basic new home construction in 2022 was $327,060, excluding land, site work, and optional features like basements or garages. In 2025, these averages have increased to between $375,000 and $450,000 for a standard custom build, while larger or more luxurious homes can exceed $600,000 or more.

Cost by Home Size

The size of your custom home continues to be one of the most significant cost drivers. While these numbers are still approximate and will vary based on location, needs, and selections, here’s how current costs compare to 2022 estimates:

• 800 sq. ft. home
• 2022: $80,000 - $160,000
• 2025: $120,000 - $200,000
• 2,000 sq. ft. home
• 2022: $200,000 - $400,000
• 2025: $300,000 - $500,000
• 3,000 sq. ft. home
• 2022: $300,000 - $600,000
• 2025: $450,000 - $750,000

These estimates are for the home’s construction only and do not include land acquisition or site improvements, which are additional costs to factor into your budget.

Disclaimer: These prices are intended as general guidelines and may vary significantly based on your lot location, home design, and finish selections. Always consult with one of our new home experts to receive a tailored estimate for your specific project.

Factors That Influence Custom Home Costs

Several key factors continue to impact the total cost of building a custom home:

• Land purchase and development, including clearing, grading, and connecting utilities.
• Permits, architectural plans, and surveys required by local municipalities.
• Demolition of any existing structures, if applicable.
• Foundation and framing, which remain some of the most labor-intensive and costly phases.
• Exterior finishes, including roofing, siding, and decks.
• Mechanical systems, such as HVAC, plumbing, and electrical.
• Doors, windows, and insulation to meet energy efficiency codes.
• Interior selections, including flooring, cabinetry, countertops, and fixtures.
• Landscaping, patios, and outdoor spaces.
• Construction management and labor costs, which remain elevated due to ongoing labor shortages.

Additionally, homeowners seeking luxury finishes, energy-efficient systems, or smart home technology should plan for a premium of 15% to 30% or more over base construction costs.

What’s Included in Our Base Pricing?

While many of the factors above can add to the overall cost of building a home, Bay to Beach Builders includes a wide range of premium features in our base pricing, ensuring that your home is built with quality from the start.

Items like framing, siding, roofing, cabinetry, and interior finishes are part of our standard package, providing excellent value and craftsmanship.



To see exactly what’s included in our base pricing—and what optional upgrades are available—visit our Included Features page or connect with our team for a personalized consultation.

Work With a Professional Custom Home Builder

Building a home is one of the most significant investments you’ll make, and working with a professional, experienced builder can make all the difference. At Bay to Beach Builders, we bring Amish-quality craftsmanship, custom design expertise, and transparent project management to every project.

From lot evaluation and architectural planning to interior design and construction, our team helps homeowners throughout Delaware and Eastern Shore Maryland navigate the entire process with confidence. Visit our Idea Homes and Design Studios in Greenwood and Ocean View, Delaware, to explore possibilities and bring your vision to life.

Let's make your dream home a reality.