What Does It Cost Per Square Foot?
That seems to be the big question on everyone’s mind when looking to build a new home. I actually looked this question up on the internet and found pages and pages of people asking the same question. People from New York to California are all wondering what does it cost to build per the square footage of the home but, what I want to share with you is how difficult it is to determine the average square foot cost on a house.
When you work with a General Contractor or Builder you need to know what they are including when they quote a cost per square foot price in order to ensure you are compairing apples to apples with another builder. As you will see below there are several differing factors that greatly effect the square foot price and it is important to know what your square foot price quote includes.
There are a myriad of different ways to construct a new home that will affect the cost efficiency and understanding how each builder you interview typically constructs their houses, is good to know. Most builders have a specific “way” they like to build and that can make a difference in the price of your new home. All builders are required to build to the standard building codes of their state and some builders do not build beyond that code.
The standard building code is going to reflect the bear minimum that anyone should build based on studies of structural factors such as snow loads or wind speeds in that area. Some of those minimums actually err to the side of caution and are adequate in most cases, but in almost all cases, there is a better way. There is almost always a way to build that is stronger and/or more energy efficient, but those changes will likely cost more money up front.
When I sit down to estimate the cost of constructing your new home I base my cost on my standard methods of construction and using materials that I feel are of a quality that I consider to be better than standard. Such as, the building code may only require an exterior wall to be framed with a 2x4 that is placed 24” on center with an insulation value of R15. I typically build to a higher standard than that.
I build walls that are 2x6 that are placed 16” on center with a minimum insulation value of R19. Using the building code a person could build a house using 2x10 wood in the floor system but I use 12” TJI’s. I do that because wood today is very unpredictable and it can twist or bow, causing the floor to squeak when you walk on it. The TJI’s are made from engineered lumber and look like an “I” beam. Their catch phrase is “silent floor” because they have very little movement at all, but they are more expensive. So knowing how your builder builds is very important when you are comparing cost. Some of these things are not visible from the outside but are very important to building a home that will stand the test of time and save you money or piece of mind in the long run.
Below are some other items that can effect the cost of construction.
Builder effects on square foot cost:
- A builder who has a lot of employees and overhead vs. a builder who uses subcontractors only
- A builder who runs a professional business office with proper licensing and insurance vs one who works out of the back seat of their truck
- A builder who builds to a certain level of quality or standards, above the minimum code requirements
- A builder who charges a higher percentage or fee for their management of the project
Location and terrain effects on square foot cost:
- A lot that is in a resort area vs. non-resort area
- A lot that is on a steep slope and requires additional foundation work or a basement vs. crawlspace
- A lot that has an engineered or pumped septic system vs a standard gravity fed septic field
- A lot that requires you to drill your own well for water vs a development with a well tap-in fee
- A lot that is inside of a development with specific esthetic standards, square foot requirements, impact fees or dues
Design effects on square foot cost:
- A design that has a lot of corners, bump-out areas, angles or curved walls, increases the cost
- A design that has a lot of different roof pitches, vaulted ceilings, angles and multi-levels, increases the cost
- A design that includes heavy timber such as log, timber frame and/or tree trunks, increases the cost
- A design with a large amount of windows or doors, increases the cost
- The size of the house—The cost per square foot is often higher for a small home than that of a larger home. When building a larger home, the cost of expensive items (such as a furnace, appliance, fixtures and other standard items) is spread over more square footage. Consequently, a larger home may have a lower square footage cost than a smaller home.. Also, it usually costs less to build a two-story home when compared to a one-story home that has the same square footage.
This is because a two-story home will have a smaller roof and foundation. Plumbing and ventilation are more compact in two-story homes
Exterior finish effects on square foot cost:
- A poured concrete foundation vs. a block foundation, is almost always more expensive
- Building 2x6 exterior wall vs 2x4 exterior walls is more expensive and/or building a floor system with TJI’s or floor trusses vs. 2x material
- Using natural wood siding products vs. man made or cement board products can be more expensive
- The grade of window that you select can create a huge difference in cost
- The type of roofing, asphalt being the lowest in cost (typ), metal, wood shingles and slate look-a-like products being the most expensive
- The choice of synthetic or “specialty” wood decking vs. pressure treated will be more expensive
- A lot of specialty details on the exterior of the house, increases the cost and multiple colors of paint and/or stain, increases the cost
Interior finish effects on square foot cost:
- Wood finishes inside the house vs drywall, increases the cost and multiple colors of paint and/or stain, increases the cost
- Choosing wood flooring or a high end tile vs carpet or a low end tile, increases the cost
- Custom tile showers vs acrylic inserts, increases the cost
- Stainless steel appliances vs std. white or black, increases the cost
- Oil rubbed bronze and satin nickel finishes vs. brass or chrome, increases the cost
- Undermount sinks or tubs vs drop-in sinks or tubs, increases the cost
- Granite and quartz countertops vs some synthetic or Formica products, increases the cost
- True masonry fireplaces vs metal box inserts, increases the cost
- Real natural stonework vs synthetic stone, can increase the cost