How much does a mansion cost in 2023 and what are the options?

Published Date: August 21, 2023

Backyard exterior view of mansion
What is the average cost of a mansion in 2023?The average cost of a mansion in 2023 is approximately $1.8 million, but it depends on a variety of factors.
If you've ever found yourself pondering the cost of owning a mansion — whether fueled by aspirations of grandeur as a homeowner, a fascination with architectural marvels or simply curiosity about luxury real estate — you're not alone. But how much does a mansion cost?The cost of a mansion can vary greatly depending on several factors, including location, size, architectural style, amenities and overall real estate market conditions. Mansions are typically high-end, extravagant properties, and their prices can range from $1 million to hundreds of millions of dollars.In this guide, we'll delve into the elements that define a mansion and explore the costs of construction, purchase, rental and joint ownership. 

What is a mansion?

A mansion is a large, opulent private residence that goes beyond the average size and amenities of a standard home. While the average home size in the United States is 2,014 square feet, a typical mansion is at least 8,000 square feet and contains lavish features such as:
  • Multiple floors
  • Expansive living spaces
  • Numerous bedrooms and bathrooms
  • Formal dining areas
  • Grand entrances
  • High-end finishes
Mansions may also boast additional amenities like resort-style swimming pools, home theaters, extensive landscaping, private gyms, wine cellars and guest houses.
A graphic showcases the four defining features of a mansion.

How much it costs to build a mansion

The cost of building a luxury home such as a mansion can vary significantly depending on several factors, including the size, location, materials used, labor costs and desired amenities. While it’s challenging to provide an exact figure without specific details, the cost of building a mansion can range from several million to hundreds of millions of dollars. The cost per square foot of constructing a mansion is generally higher than the cost of constructing a standard home due to the higher-quality materials, intricate designs and ornate features.It's important to note that additional expenses like land acquisition, permits, architectural and design fees, landscaping and interior decor should be also considered when estimating the overall cost of building a mansion. Needless to say, it’ll most likely be your most expensive option regarding home types.To obtain a more accurate estimate for building a mansion, it’s best to consult with experienced architects, contractors and construction professionals who can assess your needs and provide a detailed cost analysis based on your desired specifications and location. Below are the pros and cons of getting a mansion built:
Customize the mansion to your styleMost expensive option
Brand-new build with modern trends and stylesUnexpected costs and delays in the building process
Avoid bidding wars associated with buyingCan’t move in right away

How much it costs to buy a mansion

The median listing price per square foot is approximately $225 in the United States in 2023. Considering mansions have a minimum size of 8,000 square feet, the typical cost of a mansion would amount to approximately $1.8 million.However, the cost of a mansion can vary depending on other factors, which is why you’ll find mansions spanning from $1 million to over $300 million. In extremely wealthy areas such as Beverly Hills, for example, mansions can often be priced in the tens of millions or even hundreds of millions of dollars. On the other hand, in less expensive areas with a lower cost of living, the price range for mansions may be much lower.
A map showcases the top five most expensive and least expensive states per square foot.
While it’s possible to find homes larger than 8,000 square feet priced under $1 million, they may be run-down or lack the stately finishes and amenities commonly found in mansions. In this case, a renovation might be worth considering, which is also a factor to think about when buying vs. building a homeIt's also important to take into account the additional expenses associated with owning a mansion, including:
  • Interest rates
  • Property taxes
  • HOA fees
  • Homeowners insurance
  • Utilities
  • Maintenance
These costs are considerably higher compared to those of a standard home due to the larger size of the property. Below are the pros and cons of purchasing a mansion:
Skip the hassle of the building processExtra costs for customizations
Invest and build equityHigh upfront costs
Greater privacy and control over your living spaceLess flexibility

How much it costs to rent a mansion

A graphic showcases the average cost to rent a mansion.
Renting a home generally costs approximately 1% of its total value. So if a mansion is valued at $1.8 million, the monthly rental cost would amount to approximately $18,000. However, this number can vary based on factors like the mansion's size, location and amenities. While most rental properties will take care of maintenance and utilities for you, some don’t, so that may be an additional expense to consider when renting.While securing a long-term lease for a mansion may not be a practical option for many people, it can certainly be a fun choice for a short-term stay, such as a weekend getaway or couple’s vacation. Below are the pros and cons of renting a mansion:
Experience the luxury lifestylePay premium rent for luxury amenities 
More flexibilityNot permanent
No responsibility for maintenanceReliant on a landlord or property manager

How much a second home mansion costs

If you’re looking to buy a second home, either to live in part time or rent out, a mansion is undoubtedly a major investment. In addition to the typical fees associated with homeownership, such as utilities and maintenance, it’s important to factor in the expenses that come with owning a second home, including:
  • Higher interest: Interest rates for a second home loan will be approximately 0.5% to 1% higher than the going rate for a primary home.
  • Higher homeowners insurance: The insurance for a second home is typically higher than insurance for a primary home, and it can vary depending on whether the property is used as a rental or rarely occupied. 
  • Property management expenses: If your primary residence is a considerable distance from your second home, you may consider hiring a property manager who can oversee regular maintenance tasks and address tenant-related matters.
While purchasing a mansion as your second home may not be a financial possibility on your own, it could be possible via joint ownership. This way, you can enhance your purchasing power and reduce the maintenance and management responsibilities associated with owning a second home.Considering you will only be utilizing the property during specific periods throughout the year, co-ownership is pretty convenient. You might even consider inviting friends or family members to share ownership with you.To ensure mutual understanding, it’s a good idea to engage a lawyer who can assist in drafting a formal agreement that delineates the terms and conditions of the shared ownership arrangement. Below are the pros and cons of owning a mansion as a second home.
Own a luxury second home in your favorite placeCan’t live there full time
Earn additional income to offset expensesYour property suffers more wear and tear
More affordable through co-ownershipHigher fees and expenses
A graphic showcases the expense, maintenance, convenience and long-term investment for building, buying, renting and co-owning a mansion.
Although living in a mansion may be a dream for those with a taste for luxury, it’s not always a realistic option.Fortunately, your aspirations of owning a mansion can become a reality when you buy a second home through Pacaso. We offer fully managed LLC co-ownership of luxury second homes, allowing up to eight owners to each have a 1⁄8 ownership interest in the LLC. These homes are professionally designed, fully furnished, meticulously maintained and eagerly awaiting your enjoyment.Check out the steps to buying and owning a second home with Pacaso so you can realize your dream of owning a luxury mansion for a fraction of the cost.

FAQ: How much does a mansion cost?

Is it expensive to build a mansion?

It is expensive to build a mansion, ranging from several million to hundreds of millions of dollars depending on various factors, such as location, size, amenities and finishes.

How big is a mansion?

A home is considered a mansion starting at 8,000 square feet — approximately 75% larger than the median size  home in the United States, which is 2,014 square feet.

Where can you buy cheap mansions?

You are more likely to find less expensive mansions in states with a lower cost per square foot, such as West Virginia, Mississippi, Ohio, Arkansas and Indiana.

What is a McMansion?

A McMansion is a large, mass-produced suburban home known for its ostentatious architectural style. It typically emphasizes quantity over quality, and lacks architectural integrity and coherence. 

Features such as oversized garages, mismatched design elements and excessive ornamentation are common. While the term is often used critically, not all large suburban homes are considered McMansions.

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