How much money would it take to create an average 1000 square foot
house, frame and foundation composed entirely out of natural diamonds?

Are you talking about cut or uncut diamonds.  The level of flaws in a
diamond cause the price to vary considerably.

I was looking for a cut diamond price.

Disregarding the fact that there are not enough cut diamonds in the
world to do the job, it could be solvable problem, but you would have
to specify a type of construction that allowed everything to be of
diamond:  no beams, type of roof, etc., and explain your terms for
"gluing" them all together.  You are going to have to allow for some
steel reinforcement, but that can be included by volume at the price
of diamonds.
Then we just need to calculate the volume of the materials, the
average price of diamonds, and  - zap -  if the calculator can handle
an natural log result, we've got it.

According to this source commercial diamonds (the ones used in tools,
machinery, etc) cost about $2000.00 per pound.

MECHANICAL ENGINEERING
http://www.memagazine.org/backissues/sept00/departments/tech_focus/techfocus2.html

According to this source a normal house weighs about 40 pounds per square foot.

?How much does a house weigh??
http://forum.arts-crafts.com/eve/ubb.x?a=tpc&f=4706079532&m=8016079532

Without taking into account the fact that diamond quality and market
value both vary and fluctuate and bearing in mind that a house made of
diamonds would likely weight more than one made of standard materials,
we can estimate that a 1000 square foot house constructed entirely of
commercial grade diamonds would cost approximately $80,000,000.

1 sq ft = 40 lbs

40 lbs x 1000 sq ft = 40,000 lbs

1 lb commercial diamonds = $2000.00

40,000 lbs x $2,000 per pound = 
-----------------------
$80,000,000 for a 1000 sq ft house of diamonds 


How?s that for an answer?

Tutuzdad-ga

Tututzdad,
You're going to build him cheapy house using just industrial quality diamonds?!
Anable wants cut and polished stones, but thanks to your information,
we can work that out.
This wholesale diamond seller has a good offer and the stone seems to
be about the cheapest by weight, 0.1 carat for $49.  He only has five
of them, but we already know that we have to ignore availability.
	
http://www.jewelz.com/diamond.html
Tapered Baguette
0.10ct 3.8x1.7x1.2mm
$490   (suggested retail price)
$49    (site's selling price)

One carat is a fifth of a gram = 5 to a gram, 5000 to a kilo x 10 of
these 0,1 ct stones = 50,000.  40 lbs is 18.18 kilos, so we need ca.
909,000 of these diamonds x $49 = $44,541,000 per square foot of
construction, x 1000 = $44,541,000,000 for the house.
That is not as astronomical as I had thought; just stop the war in
Iraq and the government could have a couple at Camp David to impress
guests.
But you might want to have the walls faced with larger and better
stones to properly impress dictators from oil-rich countries, so that
could make the project a bit more expensive, but the effect on a
snowy, sunny winter day would be blinding.
Myoarin

Oh, I get it. You mean an "expensive" house. Sure, why not?

1 carat weighs about .20 grams

1 pound = 453.59237 grams, therefore there are approximately
2267.96185 carats per pound.

So, if a house weighs approximately 40 lbs per square foot, a 1000
square foot house would require approximately 90,718,474 in carat
weight of diamonds

The average value given by De Beers for Botswana diamonds is a minimum
of $80 a carat.

Using this input, assuming a house weighs approximately 40 lbs per
square foot, a 1000 square foot house made entirely of natural
diamonds from Botswana (based on the average as quoted by De Beers)
the materials for such a house would cost, at a minimum, about
$7,257,477,920 on today?s market (not counting labor, of course.)

Better?

Tutuzdad-ga

Thanks for the info guys. Now I have a goal to aim towards.

I like that: "approximately" to the fifth decimal place - of a gram!
That is GA precision.
I think you are still dealing in raw diamonds, but that doesn't
matter; we can "plaster" the cut ones on the surface  (and still
charge the customer for through-and-through cut ones).
But Anable seems happy.  :)

Just an added though.  How much area does a gram of diamond cover
versus a gram of wood?

My understanding is that a since a gram is mass, not weight, they would be the same.

ANable,
No, a gram is a measure of weight, 1/1000 of a kilogram, which is the
weight of a liter of water at a certain temperature.  One liter is
10x10x10 cm, so a gram of water is one cubic centimeter.  Looking at
the dimensions of that baguette: 3.8x1.7x1.2 mm, 50 of them would
weigh one gram, but easily fit in one cubic cm.

But Tbaka-ga has a good point, wood is about half the weight of water,
so assuming  that we need the same mass of diamonds to do the wood
construction, the house would be a good deal heavier than 40 lb/sq ft
and more expensive.
Myoarin