Comments on: Square Foot Prices More than Double Inflation in 2022

By: Eduard

Eduard — Tue, 02 Jan 2024 17:32:20 +0000

The significant rise in square foot prices, outpacing inflation in 2022, underscores the escalating costs in the construction industry. Builders navigating these challenges might find construction loans a crucial resource, helping them manage increased expenses and ensuring the successful completion of projects in a competitive market.

By: Natalia Siniavskaia

Natalia Siniavskaia — Fri, 17 Nov 2023 15:25:44 +0000

In reply to John Arendsen. Lot values, including land development costs, are not included in the reported square foot prices to make comparison between custom and for-sale prices more meaningful.

By: John Arendsen

John Arendsen — Thu, 16 Nov 2023 16:47:49 +0000

Do these prices factor in site development variables i.e. septic vs sewer, structural, civil, soil engineering, hard pan demolition and clearance, permitting variables, etc? San Diego as an example starts at about $350/sf and goes way north of $500-$1000sf depending on the location i.e Rancho Santa Fe vs, Linda Vista or National City, etc. This information is very broad, general, and open-ended.

By: jd

jd — Wed, 15 Nov 2023 21:21:18 +0000

Many factors influence “SQUARE FOOT price/cost. You’d have to go thru the entire schedule of values line-by-line and compare.

By: Aaron Meilich

Aaron Meilich — Tue, 14 Nov 2023 20:33:21 +0000

Appreciate the charting here. An additional phenomenon we are seeing (I am construction lender-ground up true construction loan) is that “appraised values” (this is specific to the “as-built” appraisal we get before closing a construction loan) have not caught up with the trajectory of building costs. I am thinking that the chart showing the contract price per sq ft data is not specifically accurate for the custom home market. Maybe these numbers are accurate for a subdivision builder with a contractor-grade design and build?

By: Natalia Siniavskaia

Natalia Siniavskaia — Mon, 13 Nov 2023 21:00:54 +0000

In reply to Jack. The data come from Census Bureau’s Survey of Construction (SOC). The estimates reflect the price in the sales contract (excluding lot values) or contract to build. The SOC does not have a large enough sample size to make state or local area estimates. The reported square foot prices are medians for the whole division.

By: Jack

Jack — Mon, 13 Nov 2023 14:07:38 +0000

Not quite sure how the data is collected in the Pacific Northwest, especially the Western side – Seattle/Portland. The custom home prices quoted are below our actual costs. Generally speaking, myself and other builders in the area, tell clients to start your budget at 300 per sqft and then it goes up from there.
I would like to see a more comprehensive breakdown of areas and data on labor and materials.
It would be really interesting to see the regional differences in products like Hardi Plank and other nationally distributed materials; I get the feeling that we are getting gouged out here.