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. Costs for a permit range from a few hundred dollars to thousands of dollars. 2  It's possible to build a log home without prior building experience, but training is required. 3  Several companies offer classes, and costs can range from $800-$4,500 or more.