The Cost of Building a Guest House: A Comprehensive Guide

how much does it cost to build a guest house

Nowadays, many people prefer to build their guest house on their property rather than rent it out. This can be a great way to fully use your land and enjoy the peace owning a guest house offers. However, estimating how much it will cost to build a guest house in 2023 is more complex than expected.

This article will explore how much it will cost to build a guest house. We'll provide an overview of the materials and estimate labor and construction. Finally, we'll provide tips on saving money on your guesthouse project. So keep reading this article to build the best guest house for your needs.

How Much Does It Cost To Build A Guest House in 2023?

Building a guest house in 2023 will likely cost between $100,000 and $200,000. This price range includes the initial purchase price and the cost of updates and repairs over the years. Additionally, some taxes must be paid on any building project, which can add additional costs to the overall budget.

If you are considering building a guest house in 2023, it is important to understand what type of structure best suits your needs and budget. A small cottage with three bedrooms and two bathrooms may only cost around $100,000, while a more elaborate home with six bedrooms and four bathrooms could run you twice as much. If you can secure financing for your project, it is likely smart to incorporate features like an outdoor porch or patio that can be used for entertaining guests.

Cost to Build a Guest House by Size

Building a guest house has many benefits but can also be expensive. Here is the table to calculate the cost of a guesthouse by size.

Size of Guest House

Cost Range: Modular

Cost Range: Custom Build

600 – 700 

$45,000 – $65,000

$60,000 – $350,000

700 – 800

$49,000 – $88,000

$70,000 – $400,000

800 – 900 

$56,000 – $99,000

$80,000 – $450,000

900 – 1,000

$62,000 – $110,000

$90,000 – $500,000




Source: HomeAdvisor

What is Included in a Typical Guest House Build?

A guest house is typically a small, self-contained structure that can be used for short-term housing for visitors or guests of a property owner. The structure may include land, construction, equipment, materials, and labor. Some common features of a typical guest house build are discussed below.


The land is where the guesthouse will be located and may include necessary utilities such as electricity and water. A guest house typically includes a bedroom, bathroom, kitchenette, living room, and patio/deck. The size of the guest house will depend on the clientele's needs. Common features often included in a guesthouse are a full kitchen, central heating and cooling, and a private entrance. This may include designing an outdoor patio or adding extra rooms to an existing structure. Once this is finalized, construction can begin.


The construction phase of a guest house can be done using various materials, depending on the budget. A typical build might include the walls and roof of the guesthouse. The walls can be made of various materials, such as wood, metal, or even plastic. The roof can be made out of a variety of materials as well, such as sheet metal, tiles, or shingles.


Equipment used during construction may include tractors, forklifts, hammers, saws, and other tools. Many guest houses are built with standard construction tools to build the foundation, walls, roofing, and other necessary components. Some specialty tools may also be needed for specific tasks, such as installing cabinets or windows. It is important to select the correct equipment for the job so the construction process can move quickly and efficiently.


The materials used during the construction of a guest house can vary but typically include lumber, bricks, mortar, pipes, wires, and other supplies. Each type of material may have its own set of specific requirements and guidelines that must be followed to ensure the finished product is acceptable and meets the needs of the homeowner.

  • Lumber must be properly dried before being used in any construction project - otherwise, it could cause structural damage. 
  • Similarly, bricks must be correctly shaped and sized to avoid creating gaps or flaws in the finished product.
  • Mortar must be mixed correctly to achieve an even distribution across the surface of the brick and should not contain any water - otherwise, it could start to decay prematurely. 
  • Pipes must be properly insulated and wired for proper electrical conductivity - otherwise, they may burst or cause electrical problems during use.
  • Wires are used to run plumbing and heating systems.
  • Supplies such as sandpaper, paint, and screws are often necessary for finishing the project.


Labor is typically required for the construction phase and daily operations, such as cleaning up after work is complete. This includes framing, insulation, drywall, taping, and painting. All of these tasks require different types of workers with varying skill sets.

Guest house builders typically need to hire various workers, including carpenters, electricians, plumbers, painters, roofers, and more. Each worker has a specialty that is necessary for completing the build correctly. For example, a carpenter must understand how to frame a building structure and correctly install drywall. A painter must be skilled in applying paint to surfaces and dealing with difficult weather conditions. Hiring the right workers to complete the project on time and without any issues is important.

Trends that will Affect the Cost of Building a Guest House in 2023

The cost of building a guest house has been rising in recent years as technological advances have created new ways to accommodate guests. Changes in building codes and regulations have also increased demand for vacation rentals. Here are three ways that these changes will affect the cost of building a guest house:

  • New technologies like Airbnb have made renting out their homes as guesthouses easier. This has created a new market for homes that can be used for short-term rental, and it has driven up the demand for vacation rentals.
  • Changes in building code requirements have made adding extra bedrooms and bathrooms to a home easier, which has increased the number of potential guest houses.
  • Regulations governing vacation rentals are becoming more stringent, forcing property owners to care more when designing and constructing their guest houses.

How to Save Money on a Guest House Build?

Anyone looking to build a guest house may find it helpful to research available options, shop for the best value, and investigate financing options. Here are some tips on how to save money on a guest house build:

 Research available options:

There are many different types of guest houses available, from traditional cottages to modern luxury villas, so it's important to understand what type of accommodation is best suited for your needs. It can also be helpful to compare prices and amenities between different companies before deciding.

Shop around for best value:

Getting your property's best price tag is important when building a guest house. This means doing your research and comparing prices before starting any negotiations. It can also be helpful to ask friends or family members who have built guest houses in the past for tips and advice.

Investigating financing options:

Financing your guest house build can be a cost-effective way to get started. Several banks and lenders offer low-interest loan programs for people interested in building a guest house. These consider financing options when building your guest house. Loans can assist you with taking care of the expense of materials and construction, so you won't have to worry about putting too much of your money into the project. Plus, if you decide to sell your guest house later on, you'll likely be able to do so at a higher price than if you had paid off the entire construction cost.

How Much Does It Cost To Build A House


How Much Does It Cost To Build A House


There is no authoritative response to this question, as the cost of building a house varies greatly depending on the home's location, size, and features. However, some general ballpark figures that can provide you with a thought of what it could cost to build a typical home in your area include the following: -The average cost for a single-family detached home in metropolitan areas falls between $200,000 and $1 million.

Costs will also vary depending on whether you're purchasing or constructing a new home or rehabbing an existing one. New construction can be significantly more expensive than renovation, but many options exist. In most cases, the amount you pay for materials and supplies will account for about 30% of the overall cost of building a house.

To know more details about the cost of building a house you can read How Much Does It Cost to Build a House.

How Much Does It Cost To Build A Shop House


How Much Does It Cost To Build A Shop House


Shop houses vary greatly, from around $10,000 to over $100,000. The sort of materials utilized, the size and layout of the house, and the specifications required by your municipality all factor into the final cost. Additionally, features like an attached garage or loft space can increase the price. A basic model may cost around $35,000, while more elaborate structures can run upwards of $70,000.

However, the average cost for a pre-engineered metal frame structure is around $60 per square foot, including labor and materials. If you build the frame using traditional methods, the cost will be higher and may reach up to $120 per square foot. If you use plywood sheathing instead of metal framing, the cost will be lower at around $50 per square foot but upwards of $90 per square foot.

How Much Money Does It Cost To Build A House


How Much Money Does It Cost To Build A House


Building a house can be expensive, and many factors can affect the final cost, such as the location, house size, and materials used. The general contractor will charge an estimate for their services, and this fee can range from $5,000 to $20,000.

The land and building permits can cost up to $10,000. The lumber and hardware stores will charge a markup for their products, which can add up to 10 percent or more. The construction team may require specialized equipment or training separate from the original estimate. These costs could range from $1,000 to $10,000 per hour.  Additional costs may be related to home maintenance or repairs down the road.

How Much Does A Tiny House Cost To Build


How Much Does A Tiny House Cost To Build


When building a tiny house, a few factors must be considered. The size of the home, the materials used, and the builder's experience must be considered. The average price per square foot for constructing a tiny house is $0.48, including materials and labor costs.

A 500-square-foot house would cost $8,000 to build using standard construction methods. If using advanced techniques or alternative construction methods, the price could be higher or lower, depending on the project's complexity. Tiny houses can be built from many different materials and range in price from $10,000 to over $200,000+. Are looking to know more details about tiny house you can see How Much Does A 400 Sq Ft Tiny House Cost.

How Much Does It Cost To Build A Barn House

Building a barn house can be an expensive undertaking, depending on the size and features of the structure. A typical Barn House Costs an Average of About $70 Thousand. Barn construction typically takes around 2-3 months to complete, with most of that time spent on framing. The average cost of building a barn house is around $70,000. This cost can increase based on the size and features of the structure, as well as the location and terrain where it will be built.

If you are interested in a barn house, you can also read this How Much Does It Cost To Build a Barn Styles House? To meet your confusion

What Is The Average Cost To Build A House


What Is The Average Cost To Build A House


When building a home, there are a few key elements you'll need to consider. The cost of these materials, labor, and permits can all vary depending on the location and size of the home you're constructing. The average cost to build a house ranges from $164,000 to $248,000.

The most expensive part of the construction process is the foundation and framing, which can cost up to $35,000. Other common expenses include the roof, doors and windows, HVAC (heating, ventilation, and air conditioning), and land acquisition. Building a house can be anywhere from $200,000 to $500,000.

Frequently Asked Questions


Ques: How much does it cost to build a guest house?

A typical guest house can cost anywhere from $25,000 to $150,000. The more features and amenities the guest house has, the more expensive it will be.

Ques: Is building a guest house a good investment?

Building a guest house can be an excellent investment if you are looking for passive income or if you are looking to use the property as a vacation rental.

Ques: Can you build your own guest house?

Yes, you can build your own guest house. Building a guest house is relatively easy but requires some planning and preparation. Before you start construction, you'll need to determine the size and layout of your guest house. Also, decide on the materials and construction methods that will be used.

Ques: How many square feet should a guest house be?

A guest house should be around 500-1000 square feet, and this size will comfortably accommodate up to 4-6 guests.

Ques: Is it cheaper to build up or out on the house?

It depends on the location, the house size, and the construction type. Generally speaking, it is cheaper to build up a house because you will need less foundation and framing, and you will save on roofing and other construction costs.


If you want to know how much does it cost to build a guest house in 2023, expect to spend anywhere from $10,000 to $20,000. With countless such choices accessible, picking the right one for your requirements is key. Whether you're looking for a simple structure or something more elaborate, consult an architect or builder to get a proper estimate. With the right planning and budgeting, you can build a beautiful and functional guest house to ensure your guests have a great experience.

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Last Updated: Feb 12, 2023

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