Cost per sq for SFH & MFH - 2025 estimates?

Question

I've been searching for up-to-date estimates of the cost per sq ft for new construction of SFH & MFH in Philadelphia in 2025.

For a land cost of $150k, how would you think about how much the completed home would need to sell for to make that land cost worth it?

Would love to hear from folks with knowledge of the current market! The construction project in question would be in West Philly, if that's helpful. Thanks in advance for your insight!

Robert Ellis · Answer

we underwrite 10% land cost to finished build value. I think you can go as high as 15% but it's cutting into your margins and depends if you are a GC yourself or not. 150k is close to a million or more. I'd be looking at multiple structures. we try to build below the average new build cost in our market in Columbus Ohio which is 515,000 last year and we target land 40-50k and urban core adjacent where we get higher price per square foot. we build for clients with margin around $190 a sq ft depending on multi or single. we can get that down in our triplex it's a little higher on our single family homes because of garages and limited economies of scale. hope that helps. idk Philly but if you show me the area and styles of homes I can give you some more insights.

Stuart Udis · Answer

Even a single family builds can vary significantly based on site conditions and required structure/design. I self perform most of my construction at this point and find it very difficult to make ground up construction pencil in Philadelphia unless I am selling for $400/ft. Rentals are extremely difficult to make pencil right now but would only personally consider higher end projects because the costs are far easier to absorb than trying to build in lower value neighborhoods.

Maya Cohen · Answer

Great questions — this is a small project, a single detached lot that could take up to 3-4 units max but is currently zoned for single family. Will mostly like be a SFH.

There are no existing structures on the land—it’s a vacant lot.

Stuart Udis · Answer

Land cost is only a small component. Of course you don't want to over pay for land, but site conditions and construction type will dictate costs....is there underpinning? entirely stick frame and if stick frame are you using TJI joists, what kind of structural sheathing/fire rating requirements are necessary? How is access for deliveries? can you store dumpsters on site? Are there electrical lines that interfere with the use of a boom truck? If multi-family is this 100 studios in a 50,000 SF building or 30 3 bedroom unit in the same square footage. The 30 unit building will cost significantly less to build. This is why construction is so difficult.... most projects have varying site characteristics and designs. Most who struggle with construction approach ground up construction using a generic cost per sq ft analysis which often backfires.

Cost per sq for SFH & MFH - 2025 estimates?

Cost per sq for SFH & MFH - 2025 estimates?

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