Construction Costs of Low-End Townhomes

[TheNiche]

Anybody out there got a handle on what the construction cost per square foot might be to build suburban townhomes (two-story attached w/garage) with only a very basic finish quality? It's been a while since I've had to obtain numbers for this kind of thing, and I know that material and labor costs have each gone up since then.

Any input, even as an in-the-ballpark range, would be helpful. Thanks.

[RedScare]

I assume you mean sans land cost. The latest that I am hearing for new home construction on a small scale is that it is tough to get under $80 psf for a plain house. Materials are still very expensive. For instance, concrete is upwards of $90 a yard, where it was near $60 just a year or two ago. Lumber is also expensive. Musicman posted on another thread that copper is four times what it cost two or three years ago.

[TheNiche]

I assume you mean sans land cost. The latest that I am hearing for new home construction on a small scale is that it is tough to get under $80 psf for a plain house. Materials are still very expensive. For instance, concrete is upwards of $90 a yard, where it was near $60 just a year or two ago. Lumber is also expensive. Musicman posted on another thread that copper is four times what it cost two or three years ago.

That's hard to believe. There are 1,600sf townhomes selling in Pasadena/Deer Park (new construction) where the builder's ask price is $70psf.

[jm1fd]

That's hard to believe. There are 1,600sf townhomes selling in Pasadena/Deer Park (new construction) where the builder's ask price is $70psf.

Economy of scale?

[gwilson]

$94 to be precise, but that includes fuel surcharge and taxes as well.

[jscarbor]

That's hard to believe. There are 1,600sf townhomes selling in Pasadena/Deer Park (new construction) where the builder's ask price is $70psf.

Man, I am just now finishing a place that I really tried to save on but have put in some extras like laminate floors and granite counters. when all is said and done I will probably be at $65 per foot. I guess I could have poured a crappy slab and saved a buck or two and I could have saved another $2-3 by going carpet everywhere and another dollar on laminate instead of granite? Still that would have brought me down to high $50's per foot? Oh wait, 2x12's as my trusses would save another dollar or two.

Still, I can't see how these people do it? My labor prices are right there with what the big boys pay. So is my material? So, I would assume that these cheap homes are just that...cheap. I can't go there myself?

[TheNiche]

Man, I am just now finishing a place that I really tried to save on but have put in some extras like laminate floors and granite counters. when all is said and done I will probably be at $65 per foot. I guess I could have poured a crappy slab and saved a buck or two and I could have saved another $2-3 by going carpet everywhere and another dollar on laminate instead of granite? Still that would have brought me down to high $50's per foot? Oh wait, 2x12's as my trusses would save another dollar or two.

Still, I can't see how these people do it? My labor prices are right there with what the big boys pay. So is my material? So, I would assume that these cheap homes are just that...cheap. I can't go there myself?

I'd bet that economies of scale are a big part of this. I think that the ones I were citing were Lennar and Brighton. They can probably negotiate for bulk materials and are completely vertically-integrated. These certainly aren't custom builds.

And amazingly, many of them come with ceramic tile and a full set of appliances.

[musicman]

I'd bet that economies of scale are a big part of this. I think that the ones I were citing were Lennar and Brighton. They can probably negotiate for bulk materials and are completely vertically-integrated. These certainly aren't custom builds.

And amazingly, many of them come with ceramic tile and a full set of appliances.

The Lennar homes i've seen are cheap looking too. pvc miniblinds just look horrible. they don't even run gas lines to your dryer/range unless you pay extra. at least that's how they were a few years ago.

material costs right now are high. when i rewired my home in 2002 i needed 7 bundles at 18 each which results in a cost of 126......today it would cost 553. lumber is high now .

[jscarbor]

I'd bet that economies of scale are a big part of this. I think that the ones I were citing were Lennar and Brighton. They can probably negotiate for bulk materials and are completely vertically-integrated. These certainly aren't custom builds.

And amazingly, many of them come with ceramic tile and a full set of appliances.

I really don't think it is the economies of scale because I buy with the power of a group and most material has a relatively small margin. Plus I have no overhead I have to account for?

You have to use lower standards to build lower than what I did in order to get into the mid to high $40's per foot for construction cost. You have to have no plywood sheathing, no tyvek, no pad site, cheap slab cheap materials. It can be done I guess, I'm just not willing to go there.

Right now my steel slabs are running with pad about $10-11 per foot of slab area. A post tension would probably save $2 or so?

[morerealestateinfo]

i agrees with jscarbo, you should be able to build those units in the $63-69 per price range without too much of a problem. at this price you should be able to get granite counters and a nice ceramic tile for the wet areas and a nice carpet for the rooms.

in order to get into the $50's per, you will have an apt. grade unit that has FHA grade carpet, laminates and formica or c tile.