Tennessee Home Budget: The Real Custom Home Build Cost

If you’re dreaming of building a custom home in East Tennessee, you’re probably wondering, “How much is this really going to cost me?” It’s an important question to get the answer to before you start laying the foundation, both literally and financially. Understanding the custom home build cost can help you make smart decisions from day one.

Whether you’re relocating to Knoxville or simply moving a town away, having a clear image of your budget is key. Here are some of the factors that impact what your custom home will really cost in Knoxville, TN.

Before breaking down the numbers, it’s important to understand what is meant by “custom home build cost.” This isn’t just the cost of materials or labor – it includes everything involved in the home-building process that’s personalized to you. 

This total cost includes:

Some people think custom homes are only for luxury budgets, but that’s not true. With smart planning and the right builder, you can create a beautiful, personalized home that fits your needs and your budget.

So, what is the average custom home build cost around here?

In East Tennessee, a good rule of thumb is $150-250 per square foot, depending on the choices you make. That means that a 2,000-square-foot home may cost anywhere from $300,000 to $500,000 or more.

This might sound like a big range, but the total cost really comes down to the choices you make in land, flooring, and other finishes. For example, a flat lot in a well-developed area may be cheaper to build on than a wooded, sloped site. A simple floor plan with standard finishes will also cost less than a home with upgraded features and custom touches. 

At Red Door Homes, we’ve built homes across East Tennessee for a wide range of budgets, and we’re always happy to help future homeowners figure out what’s realistic for their goals.

No two custom homes are the same, which means no two budgets are either. Here are a few of the biggest factors that can impact your overall home cost.

The lot you choose plays a huge role in your home’s total cost. In East Tennessee, we have a big mix of flat farmland, rolling hills, and mountain lots. You’ll want to consider:

The more work it takes ot prepare the land, the higher your cost will be. 

The bigger your home, the more material and labor it’ll take to build. That means a bigger size equals a bigger cost. However, layout matters too.

A single-story home spread out across a lot may cost more per square foot than a two-story home with the same square footage. Complex layouts, vaulted ceilings, extra bathrooms, and bonus rooms can all add to the price. 

From the type of siding you choose to the quality of your kitchen cabinets, materials can shift your budget drastically. For example, laminate countertops are much more budget-friendly than granite or quartz, and standard tile is often more cost-effective than intricate patterns. 

Choosing the right materials can help you balance your home’s style and cost, and Red Door Homes can help guide you through those choices. 

Construction labor and required permits are part of the base custom home build cost, and are often set based on your location. Different counties and cities in East Tennessee have their own building regulations, and those fees can vary.

The good news? When you work with an experienced builder like Red Door Homes, these are often built into the price or handled for you.

Want a walk-in tile shower, a fireplace, or custom built-ins? The more features you add, the higher your build cost will be.

That doesn’t mean you have to skip your dream items; it just means you need to prioritize. Focus on the features that matter most to you now, and consider which upgrades can be added later. 

At Red Door Homes, we pride ourselves on being clear about what’s included in our base pricing. That way, you’re never surprised by hidden costs halfway through the process.

When you build with us, you’ll get: 

Keep in mind, your build with us does not include:

When comparing quotes, make sure you’re looking at an apples-to-apples comparison. What looks like a lower price upfront may not include everything you expect.

Just because you're being budget-conscious doesn’t mean you have to give up on the design you love. Here are a few smart tips to keep your custom home build cost in check:

Building a custom home is an exciting investment, and in East Tennessee, it can also be one of the smartest. With affordable land, beautiful views, and a lower cost of living than many other parts of the country, it’s a great time to create a home that’s truly yours.

At Red Door Homes, we’ve helped hundreds of families across East Tennessee understand their custom home build cost and create homes that reflect their style, values, and budget. Whether you're ready to build now or just starting to explore, reach out today so we can help you take the next step.