A lot of people sends us a message about house construction cost, for both low-cost construction and mid-range construction cost. To hit two birds with one stone, we have a created this post comparing the two common housing tiers.
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If you are looking for back-to-back comparison for Low-Cost, Mid-Range, and High-end houses all in 2025, click here.
Building a home is one of the biggest financial decisions you’ll ever make. But with so many options and price points, how do you know whether a low-cost home will meet your needs or if a mid-range build is worth the extra investment? Or perhaps, you would only need a little bit of extra money that is still on-point with your budget to get that mid-range house. Let’s check it out in this post.
The house plan we will talk into is reflected on the floor plan below. Approximately 115 sq.m. area for both ground and second floor.
As always, there will always be a disclaimer. These construction prices in the next paragraph are just average construction cost. It will always vary on the site location, availability of construction materials, and the labor cost in your respective area. If ever there are portion of this post that don’t coincide with your trusted contractor, then, your contractor’s numbers should prevail.
We will also dive down into an actual construction cost breakdown so you will have an idea about it’s price differences. But before that, we need to know the basic characteristics of comparison between low-cost houses and mid-cost houses.
This analysis breaks down the house construction cost differences between low-cost and mid-range housing, comparing expenses in overall project budget (costs includes both materials, labor, and equipment).
| Description | Low-Cost Houses | Mid-Range Houses |
|---|---|---|
| Budget | 15,000 – 25,000 Php / SQM, focuses on savings | 26,000 – 45,000 Php / SQM, better materials and finishes |
| Materials Used | Basic Material, Tin/GI roofing, plywood, cheaper materials used and paint finishes. | Higher quality materials (e.g., concrete blocks, reinforced foundations, better insulation, higher-grade tiles, and paints) |
| Durability & Longevity | Shorter lifespan and may require frequent repairs | More durable construction, better resistance to wear and weather conditions |
| Design and Aesthetic Appeal | Simple but functional, with minimal architectural details | More stylish, better layout, larger windows, enhanced curb appeal |
| Resale Value | Lower resale value due to basic construction and possible wear and tear | Higher resale value because of better quality and appeal. |
For simplicity, we used the 115 SQM area house reference for both house tiers (floor plan above). The bill of quantity for both houses are also presented in such a away that it is easy for them to be compared.
We did not include high-end houses because it is unlikely that high-ends units will only have 115 sq.m. area as floor area. We will create a different post showing differences for the three house tiers, low-cost, mid-range, and high-ends units. So subscribe to keep posted.
In the price differentiation between low-cost and mid-cost construction cost, take note that the structural concrete division, the two house tiers are basically similar. We assumed that the house is in similar location and soil condition. Thus, it’s structural need is also identical. Normally, it is in the architectural trade that determine the cost of the house. Actually, architectural trade and aesthetic dictates the housing cost. Some home owners would not want certain columns in-centers. Hence, making the structural columns at the corner more reinforcement demanding. For simplicity, we will assume identical structural needs for this house.
Below, you will find the back-to-back house building cost comparison of the two typical tier houses, the low-cost houses, and the mid-range houses. To avoid complexity, indirect costs, contractor’s profit, and other miscellaneous is included in the numbers.
Everything is updated to date. You see, the following are the differences between low-cost and mid-range. In the attached bill of quantity, you will see the approximate building expenses between low cost housing and mid range housing costs. The brief summary of materials to be used is also included.
We would also like to highlight the per area construction costs.
These days, the decent entry level or low cost housing construction cost per square meter is around 15k-25k, while the mid-range housing construction cost per square meter is 26k-45k. Although some can still build below 15k (others can even do it at 10,000 – 13,000). But, its quality and integrity are shady and is not that good, Meaning, it requires frequent housing maintenance.
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Most contractors and builders uses this per square area, or per square meter in computing the building cost of the house for simplicity.
To get the “approximate” total construction costs, simply multiply the floor area of the house x the price range (that is 15k-25k for low-cost, and 26k-45k for mid-range). If there are two floors, add the ground floor area and the second floor area to get the total floor area, then multiply it to the price range.
Take note of the word “approximate” as this is only just an average. You cannot get the actual construction cost unless you already have the final house plan and contract in place. Also, don’t confuse these numbers with the developed lands offered by housing developers. Developed subdivision housing often have amenities which adds to the housing costs.
If you are looking for some references for house extension costs, click here.
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