What is My Log Home Going To Cost Me? How Can I Save Money?

There are many variables that affect the cost of a log home. Design complexity, wood species, log style, building location, home size, number of rooms, interior wall materials, roof structure, and finish materials are just a few. There are no "typical" cost values for log homes.

Generally, what is wanted is "turn-key" cost. By "turn-key" we mean that the house is ready to be moved in to. This cost would include built-in appliances, fixtures, heating and air, floor coverings, fireplace, septic, driveway, and land. However, most cost estimation methods do not account for land, driveways, or landscaping. These are variables that must be independently determined.

Cost of log kit is not everything
What is sometimes deceiving to people who are in the early stages of planning a log home is that the cost of the log kit makes the home look much more affordable than it really is. A kit that costs $75,000 only pays for the log walls and possibly some other parts of the structure.

If the kit does not contain windows, doors, floor covering, interior walls, stairs, fireplace, chimney, second-story framing, finished basement, these would create additional costs. Delivery, taxes, and design services may not be included. Also not included are labor, contracting fees, appliances, landscaping, driveways, fixtures, foundation, just to name a few.

Estimating cost using the cost-area method
The quickest and easiest — but least accurate — method of estimating turn-key cost, not including land cost, is by the "cost-area" method. Using this method, you simply multiply area of living space by a cost-per-square-foot factor.

The factor most often used for log homes is $100 to $125 per square foot. Therefore, a home that has 2000 sq. ft. of total living space would cost $200,000 to $250,000 to build, using this estimation technique.

This method ignores important details that can effect cost. Costs will be higher for handcrafted homes and homes in high cost-of-living areas. Therefore this estimation technique should be used cautiously until additional cost details are known.

Estimating cost using the kit-cost-multiplier method
As a method of obtaining a "ballpark" kind of cost estimate, some people use the "kit cost multiplier" technique. This method says that finished cost of the home will be between two and three times the cost of the log dry-in kit from their log home company. This does not include the cost of land.

Therefore, for a log home kit (dry-in components) that costs $75,000, final cost of the home will be in the range of $150,000 to $225,000. Be cautioned that this a rough method of estimating costs and that your actual costs could be much different.

If you live in a low cost-of-living area, and you include only standard features in your home, and you do some of the work yourself, your home cost could actually be less than twice the kit price. On the other hand, if you live in a high cost-of-living area and opt for premium features in your home, you could easily exceed three times the cost of your log kit.

Estimating cost using our calculator
Another method is to use a cost estimation calculator that accounts for many of the major factors that affect total cost. Our Log Home Cost Estimator is an example of such a calculator. This provides a somewhat more refined estimate than the "kit cost multiplier" technique above. Again, it does not include the cost of land.

As an example, we used the calculator to estimate the turn-key cost of a 2000 sq. ft. milled-log home in North Carolina, with unfinished basement, cathedral ceiling, no garage, a small deck, zero-clearance fireplace, wood floors, sheetrock interior walls, standard cabinets and appliances. The cost is estimated by the calculator to be $212,075.

Cost of kit is not everything - again
It should be apparent after using any cost estimation technique that the cost of your log package does not affect your total turn-key cost as much as you might have thought. It's only a part of the cost. Therefore, spending a lot of time comparing small differences in kit prices from various manufacturers for the same general house plan may not be the best use of your time.

Location is a big factor
One of the biggest factors that affect building cost is location. Although the cost of a particular log kit from a particular company will be the same, regardless of where you build (ignoring shipping cost and taxes), construction labor and material costs vary considerably across the country. A log home in Aspen, Colorado, for example, can cost two or three times as much as the same home in Blue Ridge, Georgia — even when the log kit price is the same for both homes.

States with lowest cost
The states in which log homes cost the least to build (outside large metro areas and resort areas) are: Alabama, Arkansas, Georgia, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas.

States with highest cost
The states in which log home building costs are greatest are: Alaska, California, Connecticut, Hawaii, Massachusetts, New Jersey, New York, and Rhode Island.

How to keep costs down
There will always be trade-offs that you can make to keep your log home building costs within budget. Here are some examples:

- Keep your design as simple as possible. A 4-corner structure is much more cost effective than a complex multi-corner structure. In general, corners are wasted space, wasted logs, and extra labor. The roof for a complex design is also more expensive.

- Don't build more house than you need. Jim Cooper, a well-known writer and log home book author, reminds us that we pay for unnecessary space in a log home in four ways: we pay to build it, we pay to furnish it, we pay to heat and cool it, and we pay to maintain it. Wise use of minimum space is a log home owner's challenge.

- Use standard plans, or slightly modified versions of standard plans. Often, but not always, you will pay extra for a log home company to create highly customized plans. Furthermore, your custom plans may not be as easy, or inexpensive, to build.

- Use standard building materials, cabinets, fixtures, appliances, roofing, and flooring. Carpet costs less than solid wood floors. Painted drywall costs less than tongue-and-groove wood. Sears Kenmore kitchen stoves cost less than Aga. Asphalt shingles cost less than metal roofs. Cultured stone costs less than real stone.

- Eliminate full-masonry fireplaces. Zero-clearance fireplaces with a cultured stone hearth and chimney are much less expensive. Wood stoves or gas stoves may also offer a less expensive, and more energy efficient, alternative.

- Use standard windows and doors. Non-standard or custom-built sizes can be very costly. Spend time learning about window technology and the many options that are available. Often, moderately priced windows from a lesser known manufacturer can be just as good as the more costly name brands.

- Use log siding with conventional wall framing instead of full log walls. The log siding can be used on inside walls too. It's much less expensive and looks the same as full logs. Use log siding on gables and dormers — everything above the first floor. Use log siding on garages.

- For your logs, select common wood species in your area. Western Cedar shipped to a log home company in your area will cost you extra if Eastern White Pine is more readily available.

- Use a standard roof system. Cathedral roofs with exposed timbers are beautiful but costly. You can achieve the same effects with scissor trusses or standard roof framing, wood or drywall decking, and real but non-functional exposed timbers — at lower cost.

- Put your garage in your basement to eliminate the cost of a separate structure. A "drive-under" garage effectively uses basement space that may otherwise go unused.