How Much Does It Cost to Build a Luxury Home in Little Rock, Arkansas

Building a luxury home is a dream for many, and Little Rock, Arkansas, offers a fantastic backdrop for turning this dream into reality. With its blend of natural beauty, low cost of living, and growing economy, Arkansas has become a hotspot for luxury home construction. But how much does building a luxury home in this region cost? Let’s dive deep into the factors and costs involved.

Understanding the Basics of Building a Luxury Home

Before we get into the specifics, it’s essential to understand what constitutes a luxury home. Typically, luxury homes are characterized by high-end materials, superior craftsmanship, unique architectural designs, and an array of upscale amenities. They are built to offer comfort, style, and status.

Why Build in Little Rock, Arkansas?

Natural Beauty and Low Cost of Living

Arkansas, known as the “Natural State,” is home to stunning landscapes, from lakes to hot springs. The low cost of living makes it an attractive location for building a luxury home. Little Rock, the state capital, combines urban amenities with access to these natural wonders, providing a perfect setting for luxurious living.

Booming Economy

With a growing economy and one of the country’s lowest real estate tax rates, Little Rock is an excellent place to invest in a luxury home. The city offers a balance of business opportunities and a high quality of life, making it ideal for affluent homeowners.

Cost Breakdown of Building a Luxury Home

Total Construction Cost Range

The cost per square foot for building a house in Arkansas can range significantly based on the type and quality of construction. For luxury homes, you can expect to pay between $346.22 and $503.60 per square foot. However, it’s important to note that building a home for less than $140 per square foot is only possible with highly cheap materials and without licensed contractors. Most banks require a licensed builder to qualify for a construction loan, and most cities require a licensed GC/builder to pull permits, making self-built projects difficult or impossible.

Craftsman-Style Bungalows

Cost Range: $140.00–$157.37 per square foot
Average Floor Area: 1,792 square feet
Total Cost: $250,880.00–$282,016.00

Mid-Range Homes

Cost Range: $157.37–$346.22 per square foot
Total Cost: $282,016.00–$620,435.20

Luxury Homes

Cost Range: $346.22–$503.60 per square foot
Total Cost: $620,435.20–$902,451.20

Factors Influencing the Cost of Building a Luxury Home

Land Price in Little Rock

The cost of land varies greatly depending on the location within Little Rock. In central Arkansas, land prices can range from $75,000 to $120,000. The cheapest lots can be found for $25,000 to $35,000, but these often require significant additional dirt work costs due to steep slopes or undesirable locations.

City Center Land Cost: $75,000–$120,000 for a standard lot

Pre-Construction Expenses

Site Works

Site preparation involves tasks such as surveying, grading, and excavation. These costs depend on the nature of the land and can add 3-8% to the total project cost.

Cost per Square Foot: $3.77–$15.08

Professional Fees

Professional fees, which include architects and engineers, typically range from 8 to 15 percent of the home’s total project cost.

Cost per Square Foot: $11.82–$88.68

Building Permit Costs

Building permits in Arkansas are relatively affordable.

Total Cost: $800–$1,800

Scope of Work

Foundation

Foundation costs usually represent 10-15% of the total construction budget.

Cost for a 1,792 sq ft Home: $22,561–$50,762

Framing

Framing can account for 10-20% of the total project cost.

Cost for a 1,792 sq ft Home: $22,561–$67,683

Exterior Work

Exterior work, including cladding and glazing, is another significant cost factor.

Cost for a 1,792 sq ft Home: $22,561–$67,683

Utilities

Installing electrical, plumbing, and mechanical systems can add up to 10-15% of the total project cost.

Cost for a 1,792 sq ft Home: $22,561–$50,762

Interior Finishes and Fixtures

Interior finishes can represent 25-35% of the total project cost. That includes everything from flooring to cabinets.

Cost for a 1,792 sq ft Home: $56,403–$118,446

Labor Costs

Labor costs usually account for 35-50% of the total project cost.

Cost per Square Foot: $44–$94

Additional Costs to Consider

Homeowners’ Association Fees

These fees can vary based on the community regulations and amenities offered.

Landscaping Costs

A good rule of thumb is to budget 10% of your construction cost for landscaping.

Average Cost: $20,000

Driveway Costs

Driveway installation costs can vary depending on the material used.

Cost per Square Foot: $3.16–$10.77

Perimeter Fence

The cost of a perimeter fence depends on the material chosen.

Cost per Linear Foot: $15–$60

Home Building Financing Options

Home Construction Loans

Two common types of construction loans include:

Construction-to-Permanent Loan: Covers land purchases and construction costs, converting to a mortgage once the home is complete.
Construction-only Loan: Covers only the construction costs, with the entire loan due upon completion.

Personal Loans

Personal loans can finance specific parts of the construction, such as landscaping.

Home Equity Loans

These are available to homeowners with equity in their property and want to finance new construction.

Is It Cheaper to Build or Buy a House in Arkansas?

While building a home allows for customization, it is often more expensive than buying an existing home. However, the additional cost can be worth it for those who want a brand-new, custom-built home that meets all their needs.

Conclusion

Building a luxury and custom home in Little Rock, Arkansas, is an exciting venture that offers numerous benefits, from stunning natural surroundings to a favorable economic environment. Understanding the costs involved and planning accordingly can help ensure a smooth construction process and a final result meeting your expectations.

FAQs

How long does building a luxury home in Little Rock, Arkansas, take?

Typically, building a luxury home can take anywhere from 9 to 12 months, depending on the complexity of the project and weather conditions.

What permits are required to build a home in Little Rock?

You will need several permits, including building, plumbing, electrical, and HVAC permits. The total cost for these permits can range from $800 to $1,800.

Can I build my own home in Arkansas?

Yes, you can build your own home if you own the land. However, you must secure the necessary permits and comply with local building codes. Additionally, most banks require a licensed builder to qualify for a construction loan, making self-built projects challenging.

What is the average cost per square foot for luxury homes in Little Rock?

The cost per square foot for luxury homes in Little Rock ranges from $346.22 to $503.60.

Are there any hidden costs when building a home?

Additional costs include homeowners’ association fees, landscaping, driveway installation, and perimeter fencing.