1 Estimates of the average cost for labor and materials to have a log home built (either custom or from a kit) range from $90-$150 a square foot, depending on location, quality of materials and the complexity of the project, plus $35-$55 a square foot for basement or garage spaces. A homeowner in the Midwest estimated spending $10,000-$15,000 for cedar beams, double-glazed windows, flooring, plumbing and other materials, or $11-$17 a square foot, with many items bought inexpensively at auction. 2  A member of the Log Home Builders Association paid $100,000 for materials to build his luxury log home.