The total cost to demolish and rebuild a house is highly variable, but expect the total project costs to range from $70,000 for a modest home in an affordable part of the country to $500,000 or more for complicated, large-scale house demo-and-rebuild projects in more expensive parts of the U.S.here are so many factors influencing the cost of building a new home, including its size, location, building materials, features, site work and more. A 2,000 square foot house with average-quality features and no basement can easily cost $70,000 or more to build.