Current Building Costs per Sq. Ft.
From: Ron
"Hey Carl -
Just bought your book and think it's great. I'm wondering if this statement, currently on your website, is true as of July 2008: "you should be able to build anywhere in the USA for $80.00 to $110 per sq ft. for labor & materials.”
It seems rather low to me. We're looking at housing in Western North Carolina and some of the new construction is $200/sf+ for what we think is mid-level construction/finish/appliances."
Hey Ron,
Here is a chart with the latest per sq ft building costs stats from NAHB (National Association of Homebuilders).
It provides an instant look at both the Median average cost per sq ft. and the Average cost per sq ft. Median average cost per sq ft = 1/2 of all the homes cost more to build and 1/2 cost less. Average cost per sq ft = total per sq ft costs of all houses built divided by the number of houses built.
Building costs were actually going down in some areas in 2007, and according to NAHB updates, in 2008, building costs are going down in almost all areas.
Click on the logo to see chart:
As you can see, $80 - $110 is above average.
I don’t have enough information from you to determine what the $200 per sq ft you refer to actually means.
I have a feeling that $200 per sq ft is a quote from a builder who has his profit and overhead built in, or is a retail price for a finished house that has land cost (price) included as well.
In Charlotte, NC, a city I am very familiar with, $200 per sq ft is pretty heavy with amenities.
Of course, it is dangerous to generalize. Cost per sq ft depends on many variables, including; size, design, how good a shopper you are, difficulty in “site access” (i.e. the top of a NC mountain), availability of labor and/or materials, just to name the major ones.
Whatever cost per sq ft you end up with should always be measured against what the finished value will be in the locale where you are building. A good Realtor (or an appraiser) can tell you if you are overbuilding (cost wise) for the area.
Overbuilding is not wise and unless you are paying cash for the house, you won’t be able to borrow as much money as you would probably like to borrow.
Lenders, now more than ever, are very, very resale conscious. You should be too.
Visit my “Getting Started” page on http://www.byoh.com/ and play with the cost to build calculator. There is a new tool that goes along with the calculator that shows you how quality & design affect cost to build. It’s pretty cool.
Hope all this helps,
Carl
"Hey Carl -
Just bought your book and think it's great. I'm wondering if this statement, currently on your website, is true as of July 2008: "you should be able to build anywhere in the USA for $80.00 to $110 per sq ft. for labor & materials.”
It seems rather low to me. We're looking at housing in Western North Carolina and some of the new construction is $200/sf+ for what we think is mid-level construction/finish/appliances."
Hey Ron,
Here is a chart with the latest per sq ft building costs stats from NAHB (National Association of Homebuilders).
It provides an instant look at both the Median average cost per sq ft. and the Average cost per sq ft. Median average cost per sq ft = 1/2 of all the homes cost more to build and 1/2 cost less. Average cost per sq ft = total per sq ft costs of all houses built divided by the number of houses built.
Building costs were actually going down in some areas in 2007, and according to NAHB updates, in 2008, building costs are going down in almost all areas.
Click on the logo to see chart:
As you can see, $80 - $110 is above average.
I don’t have enough information from you to determine what the $200 per sq ft you refer to actually means.
I have a feeling that $200 per sq ft is a quote from a builder who has his profit and overhead built in, or is a retail price for a finished house that has land cost (price) included as well.
In Charlotte, NC, a city I am very familiar with, $200 per sq ft is pretty heavy with amenities.
Of course, it is dangerous to generalize. Cost per sq ft depends on many variables, including; size, design, how good a shopper you are, difficulty in “site access” (i.e. the top of a NC mountain), availability of labor and/or materials, just to name the major ones.
Whatever cost per sq ft you end up with should always be measured against what the finished value will be in the locale where you are building. A good Realtor (or an appraiser) can tell you if you are overbuilding (cost wise) for the area.
Overbuilding is not wise and unless you are paying cash for the house, you won’t be able to borrow as much money as you would probably like to borrow.
Lenders, now more than ever, are very, very resale conscious. You should be too.
Visit my “Getting Started” page on http://www.byoh.com/ and play with the cost to build calculator. There is a new tool that goes along with the calculator that shows you how quality & design affect cost to build. It’s pretty cool.
Hope all this helps,
Carl
posted by carl at
6:56 AM
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