How Much Does it Cost to Build a House in Arkansas?

Thinking about building a home in Arkansas? You’re not alone — the state’s low cost of living, booming economy, and abundance of outdoor recreation make it a popular choice for families and retirees alike. On top of that, Arkansas has one of the lowest property tax rates in the country, which helps keep long-term costs down.

Building a new home here typically costs between $115 and $504 per square foot, depending on location, materials, and custom features. For a 2,000-square-foot home, that means a total cost of $230,000 for a standard home or up to $1 million for a luxury home, not including land. Rural areas tend to be more affordable, while cities like Fayetteville or Little Rock may run higher.

In this guide, we’ll break down what it really costs to build a home in Arkansas, from materials and labor to permits and utilities — and how to keep your budget in check.

The Average Cost to Build a House in Arkansas 

Cheapest Type of House to Build per Square Foot

If you’re looking to build on a budget, craftsman-style bungalows are one of the most affordable home types in Arkansas. Their simple, wood-framed design keeps construction costs low — typically starting around $115 per square foot, or about $230,000 for a 2,000-square-foot home.

Because they’re lightweight and don’t require complex foundations or heavy materials like brick or concrete, craftsman bungalows go up faster and cost less in labor. They’re especially popular in smaller towns where building codes are more flexible and land is cheaper.

To keep costs down, stick to a single-story layout, open floor plan, and standard-grade finishes. Just be mindful that cheaper materials may reduce long-term durability or energy efficiency — so it’s worth investing a little more in insulation, roofing, and HVAC systems where it counts.

Home Construction Costs per Square Foot

Total Home Construction Cost Range

$125.90–$503.60 per square foot 

The cost per square foot of building a house in Arkansas would take you anywhere from $ 125.90 for craftsman-style bungalows to $503.60 for high-end luxury homes.

Craftsman-Style Bungalow

$125.90–$157.37 per square foot

52.3% of homes in Arkansas are single detached units, all because of its cheap land prices. 

Most homes boast an average floor area of 1,792 square feet, pegging your construction anywhere between $225,612.80 to $282,016.00.  

Mid-Range Home Cost Range

$157.37–$346.22 per square foot

Concrete homes with brick tile roofing are popular in response to the climate in Arkansas. Arkansas’s humid, subtropical climate tends to get stuffy and hot. Home construction costs for a 1,792-square-meter home to range between $282,016.00 to $620,435.20.

High-end or Luxury Home Cost Range

$346.22–$503.60 per square foot

Grand colonial-style homes are typical in upscale neighborhoods in Arkansas. All these are fitted and finished with expensive materials and fixtures. High-end homes in Arkansas would cost you roughly $620,435 to $902,451.

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Construction Cost per Square Foot in Various Cities in Arkansas

Building a house in Arkansas is pretty cheap compared to other cities, with prices ranging for as low as $88 to $113. 

A list of several cities and respective costs like this:

What Constitutes Full Cost to Build a House in Arkansas?

Land Price In Arkansas

The capital of Arkansas, Little Rock, has a selection of smaller plots of land. You can find a 6,000-square-foot lot for less than $5,000. Prices could even go as low as $1,500 for a plot of land about the same size located in the city’s outskirts. Since Arkansas is a generally ‘poor’ state, large farmlands come ‘dirt cheap’ according to most residents. 

Pre-construction Expenses

Site Works

Site preparation involves several jobs and tasks, including but not limited to surveying, grading, and excavation. The cost of site preparation is typically independent of construction costs. Site preparation typically adds 3-8% to the total project cost, depending on the scale and nature of the project. For example, building a home atop a boulder will cost more than building on flat land. With that said, prepare to spend at least $3.77 per square foot and, at most, $15.08 per square foot. The cost for site works will depend on the type of construction, the number of stories, and existing site conditions. 

Site works approximately: $3.77–$15.08 per square foot

Professional Fees

Professional fees usually cost between 8 to 15 percent of a home’s total project cost. Asking prices can range from $11.82 to $88.68 per square foot. For a 1,792-square-foot home, professional fees cost a minimum of $21,181.44. 

Professional fees approximately: $11.82–$88.68 per square foot

Building Permit Costs

Building permit fees are relatively cheap in Arkansas. A safe number to consider is somewhere between $800 to $1,800 for all the fees required for constructing your home. 

Building Permit approximately: $800–$1,800

Scope of Works

Foundation

Foundation costs usually occupy 10-15% of your total construction budget. For a house with a floor area of 1,792 square feet, consider spending anywhere between $22,561 to $50,762.

Foundation works approximately: $22,561–$50,762 for a 1,792-square-foot craftsman bungalow

Framing

Lightweight framing costs start at 10-20% of the total project cost, giving you a price per square foot of $12.60 to $37.77. These estimates are all based on a 1,792-square-foot craftsman bungalow. Luxury and high-end projects would cost five times the average pricing. 

Framing works approximately: $22,561–$67,683 for a 1,792-square-foot craftsman bungalow

Exterior Work/ Enclosures

Exterior work refers to the building envelope, cladding, and glazing. For glass-clad facades, the cost for these glass enclosures would also fall under this category. For a craftsman-style bungalow built of wood, a budget of $13 to $20 per square foot is a reasonable budget. 

Exterior works approximately: $22,561–$67,683  for a 1,792-square-foot craftsman bungalow

Utilities

Installing your home’s electrical, plumbing, and mechanical systems can include essential elements like power, lights, water, heat, and more complex ones like sewer lines and ventilation systems. Utility costs can range from 10-15% of your final project cost.

Utilities approximately: $22,561–$50,762 for a 1,792-square-foot craftsman bungalow

Read also: Best Solar Installers Arkansas

Interior Finishes and Fixtures

Consider a budget of 25-35% for interior work. Another way to estimate the cost for your interior finishes is to combine all rough works: foundation, framing, and exterior. The price will approximately reflect how much you will spend finishing your project. 

Low-cost finishes usually start at $31 per square meter. It usually includes no design element and is limited to flooring, walls, and ceiling alone. If you wish to build lovely kitchens, beautiful trim, and exquisite cabinetry, consider a budget of $66 and above per square foot. 

Interior finishes approximately: $56,403–$118,446 for a 1,792 square foot craftsman bungalow

Labor costs 

The labor cost usually represents anywhere from 35 to 50 percent of total project costs, with the exact percentage depending on the type of work involved. Rough or pre-finishing works run generally around 35 to 40 percent of the final price. Finishing jobs are closer to 41 to 50 percent of the total. 

Labor cost approximately: $44–$94.00  per square foot, all dependent on the type of house and scope of works

Home Addition Costs In Arkansas

To understand how much home addition and renovation projects will cost, you should first examine the scope of work needed to construct your home. You’ll also need to identify if there will be a need for additional foundation and framing works. The cost for home addition projects is pretty much the same based on a per-square-foot price, with a total amount usually smaller than building a new home since most home addition projects work within a smaller floor area.

Hidden Costs

Homeowners’ Association Fees

Consider the homeowners’ association fees necessary for your home. If you are building a house in a planned development with strict regulations, you will usually have to submit plans for approval. Prices vary, so contacting your HOA for actual figures would be best.

Landscaping Costs

10% of your construction cost is a feasible budget for an average landscaping job for your home, including all yards and sides. If you were working with a home construction budget of $225,612 for a 1,792-square-meter home, it would be reasonable to spend around $20,000 on landscaping. 

Landscaping costs approximately: $20,000 lump sum

Driveway Costs

A plain concrete driveway installation in Arkansas ranges from $3.16 to $6.32 per square foot. An upgrade to concrete would be concrete pavements, which cost $8.41 to $10.77.

Driveway cost approximately: $3.16–$10.77 per square foot

Perimeter Fence

Depending on the type of fence you wish to install, it could go as low as $15 and as high as $60 per linear foot. Perimeter fence options ranging from wood, vinyl, wrought iron, chain-link, and concrete. 

Perimeter Fence approximately: $15–$60 per linear foot.