A friend with a limited budget has asked me to design their home. They already have the land, and want a pretty small house -- on the order of 1,500 or 2,000 sf.
Would it be possible to build this house for under $300,000 all in? Including contractor's fees, utility hookups, etc. At 1,500 sf, that works out to $200/sf. At 2,000 sf, it's closer to $150/sf.
What are the numbers in your market? Do the above numbers make sense to you?
tagalong
Apr 19, 10 2:24 pm
What part of the country are you in?
David Cuthbert
Apr 19, 10 2:26 pm
I think your numbers will depend heavily on where you are/ is the house spec/ etc etc. Details son, God is in the details. But to answer your question 150 - 200 psf doesn't seem impossible.
tagalong
Apr 19, 10 2:42 pm
I'm in Texas, and I would say that unless you find a builder who is able take advantage of economies of scale, you are looking much closer to $200/sqft. than $150. Many builders will want a bit more contingency when they know an architect/designer is involved because they generally have to pay more attention to everything.
And I agree with everyone so far: The question of where in the country you are is huge, closer to $200 is more likely, but neither figure is impossible.
aquapura
Apr 19, 10 3:28 pm
$200/sf sounds about right for a mid-range home around my parts. The problem is that most homeowners buy pre-existing or new construction spec homes that can go for 1/2 that price per sf. So when they want a "move up" addition or custom home they have price shock that a modest 2000 sf home could run $400k on the low end.
silverlake
Apr 19, 10 3:50 pm
If its a flat site w/ no grading $150 is definitely doable..
987654321
Apr 19, 10 4:15 pm
Not in Silverlake, Silverlake.
farwest1
Apr 19, 10 4:22 pm
I'm in Seattle. Meant to say that.
proto
May 8, 19 1:59 pm
.
won and done williams
Apr 19, 10 6:30 pm
i haven't done much residential, so i apologize if this sounds naive, but if a client comes to you with a site, a $300,000 budget, and a program for a 1,500-2,000 sf house, you find a way to make it happen. obviously client expectations need to be tempered a bit from the outset, but this really doesn't sound that unreasonable.
farwest1
Apr 19, 10 7:06 pm
I think that's right, jafidler.
The problem for me is that all of the residential work I've done has been in the $300/sf to $1200/sf range, i.e. sparing no expense. So when I hear $150/sf, I worry that it's not possible to do anything interesting.
Any examples that people can point out of modern homes designed for $150/sf or less?
in the south, 215-240/sf is semi-low custom. i have no idea what it was before the bottom fell out to know whether this is a dramatic price decrease. it is also tough for me not to see this as an astounding bargain, as i moved here from a very expensive residential market in urban new england. there, the cost on a typical project (for everything custom) was between 300-400/sf. and this was a very average and normal price point. i should also point out that both prices -- although each with many variables (location, economic climate, hungry (or not) contractors) -- are accounting for typical stick frame construction. no sips. no modular components. no new technologies.
ess
Apr 19, 10 8:43 pm
i should also reiterate the hungry contractor point. from my view, residential contractors are still in somewhat dire straights, and i think you're seeing bids that reflect that. a client seeking a residential gc has some leverage, and i think there is more bang to be had for your buck in this moment.
randy1
Apr 20, 10 8:14 am
@ farwest1:
this question really depends upon where you building. i have been designing homes that range in s.f. from 1500 to 10,000 for many years and have seen prices go uP and uP as the market goes uP and uP. lately, additions/renovations START @ $250-$300 per s.f.. new construction, meaning new from the ground uP start @ $300/s.f.. this all depends upon materials, program, site conditions, etc...... and time frame. everything has changed! but, the most recent driver of the uPtick in prices is the cost of moving and insuring materials from their place of origin to placement/installation on site. if your client is interested in design excellence then your cost per s.f. is relative to material selection, site placement, and the area of the world you are building in. the only loser in the process is the homeowner - who pays and pays and pays. i don't see us (architects) as saviors in the process anymore (ever), just the messenger facilitating the owners dream - its all very relative and the design professional has the choice to make it happen for their client.
aquapura
Apr 20, 10 8:44 am
you find a way to make it happen
That's easier said than done when dealing with residential. In commerical I've done projects where expected funding didn't come through, etc. and we got paid out for the original design and went back to the drawing board, literally.
Never met a residential client that wanted to pay for a design that would be shelved and then literally start from scratch. Hence why I NEVER promise to meet a budget with residential clients. I'd be working for free...quite literally.
I could probably "make it happen" on a small remodel, but for new construction or an addition it's very hard to value engineer the price down to most homeowners budgets. Perhaps my problem is working with middle-income people that want the world, but from my experience the higher end finishes are a relatively cheap part of the overall project costs. Structure/building shell costs are fixed and ain't changing. Sure, changing from tile to sheet vinyl can save a couple thousand, etc. Then again, most clients can find an extra couple thousand, but not an extra $20k+
BulgarBlogger
May 8, 19 7:28 am
Most of my projects in NYC are between $1200-$1800 per sf.
A friend with a limited budget has asked me to design their home. They already have the land, and want a pretty small house -- on the order of 1,500 or 2,000 sf.
Would it be possible to build this house for under $300,000 all in? Including contractor's fees, utility hookups, etc. At 1,500 sf, that works out to $200/sf. At 2,000 sf, it's closer to $150/sf.
What are the numbers in your market? Do the above numbers make sense to you?
What part of the country are you in?
I think your numbers will depend heavily on where you are/ is the house spec/ etc etc. Details son, God is in the details. But to answer your question 150 - 200 psf doesn't seem impossible.
I'm in Texas, and I would say that unless you find a builder who is able take advantage of economies of scale, you are looking much closer to $200/sqft. than $150. Many builders will want a bit more contingency when they know an architect/designer is involved because they generally have to pay more attention to everything.
Coincidentally, I just found this blog today.
And I agree with everyone so far: The question of where in the country you are is huge, closer to $200 is more likely, but neither figure is impossible.
$200/sf sounds about right for a mid-range home around my parts. The problem is that most homeowners buy pre-existing or new construction spec homes that can go for 1/2 that price per sf. So when they want a "move up" addition or custom home they have price shock that a modest 2000 sf home could run $400k on the low end.
If its a flat site w/ no grading $150 is definitely doable..
Not in Silverlake, Silverlake.
I'm in Seattle. Meant to say that.
.
i haven't done much residential, so i apologize if this sounds naive, but if a client comes to you with a site, a $300,000 budget, and a program for a 1,500-2,000 sf house, you find a way to make it happen. obviously client expectations need to be tempered a bit from the outset, but this really doesn't sound that unreasonable.
I think that's right, jafidler.
The problem for me is that all of the residential work I've done has been in the $300/sf to $1200/sf range, i.e. sparing no expense. So when I hear $150/sf, I worry that it's not possible to do anything interesting.
Any examples that people can point out of modern homes designed for $150/sf or less?
(for obvious reasons, the project never panned out.)
also, here is one of my favorite super cheap projects that happens to be almost in my backyard.
in the south, 215-240/sf is semi-low custom. i have no idea what it was before the bottom fell out to know whether this is a dramatic price decrease. it is also tough for me not to see this as an astounding bargain, as i moved here from a very expensive residential market in urban new england. there, the cost on a typical project (for everything custom) was between 300-400/sf. and this was a very average and normal price point. i should also point out that both prices -- although each with many variables (location, economic climate, hungry (or not) contractors) -- are accounting for typical stick frame construction. no sips. no modular components. no new technologies.
i should also reiterate the hungry contractor point. from my view, residential contractors are still in somewhat dire straights, and i think you're seeing bids that reflect that. a client seeking a residential gc has some leverage, and i think there is more bang to be had for your buck in this moment.
@ farwest1:
this question really depends upon where you building. i have been designing homes that range in s.f. from 1500 to 10,000 for many years and have seen prices go uP and uP as the market goes uP and uP. lately, additions/renovations START @ $250-$300 per s.f.. new construction, meaning new from the ground uP start @ $300/s.f.. this all depends upon materials, program, site conditions, etc...... and time frame. everything has changed! but, the most recent driver of the uPtick in prices is the cost of moving and insuring materials from their place of origin to placement/installation on site. if your client is interested in design excellence then your cost per s.f. is relative to material selection, site placement, and the area of the world you are building in. the only loser in the process is the homeowner - who pays and pays and pays. i don't see us (architects) as saviors in the process anymore (ever), just the messenger facilitating the owners dream - its all very relative and the design professional has the choice to make it happen for their client.
That's easier said than done when dealing with residential. In commerical I've done projects where expected funding didn't come through, etc. and we got paid out for the original design and went back to the drawing board, literally.
Never met a residential client that wanted to pay for a design that would be shelved and then literally start from scratch. Hence why I NEVER promise to meet a budget with residential clients. I'd be working for free...quite literally.
I could probably "make it happen" on a small remodel, but for new construction or an addition it's very hard to value engineer the price down to most homeowners budgets. Perhaps my problem is working with middle-income people that want the world, but from my experience the higher end finishes are a relatively cheap part of the overall project costs. Structure/building shell costs are fixed and ain't changing. Sure, changing from tile to sheet vinyl can save a couple thousand, etc. Then again, most clients can find an extra couple thousand, but not an extra $20k+
Most of my projects in NYC are between $1200-$1800 per sf.
Big difference between 2010 and 2019.
High-end residential is where it's at in NYC ;)