Building a home in Chicago in 2025 costs between $250 and $650 per square foot, varying by home type, location, and customization. Custom homes range from $200–$350, luxury homes $380–$600+, and modular homes $100–$200 per square foot. Costs differ regionally: downtown ($300–$500), northwest suburbs ($250–$350), south suburbs ($200–$275), and rural areas ($150–$225). Factors include design complexity, materials, labor shortages, location challenges, and energy-efficient features. Additional expenses like permits and site prep also impact budgets.