What is the average cost per square foot for building a house in Texas?

The price will vary within the State and depends on the location of the house. Check with local people, such as the insurance companies, builder's association, and possibly the building department.

The price is not dropping like you might think due to the poor housing market. Labor and materials will still run around $130-$150 sq/ft and that is without using high end counters and Plumbing.