Price Per SQ FT for New Construction in the SF Bay Area

Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes

I am considering a potential SPEC house build and I was wondering what the going price per SQ FT is for new construction in the SF Bay Area. New construction would be medium to high end.

I have talked to a few GC's and the quotes I got were $140 sq ft for lower end and $240 - $350 sq ft for mid to higher end.

Has anyone recently built new construction and have any insights?

Thanks.

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Chris MasonPro Member

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Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes

Don't.

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Jason Hsiao
Investor · Pasadena, CA · Member since 2015 · 269 posts · 189 votes
8y
medium to high end $275/sf give or take, prob closer to $300.
3 Reply
Zab Khan
Contractor · Fremont, CA · Member since 2018 · 50 posts · 17 votes
8y
Location and terrain is a big factor when looking for a "ball park" figure, especially when the cost of a foundation is a major part of the project.
You can do a Low/Med under $200 sq.ft if it's a flat lot with standard foundation design and doesn't require piers or retaining walls.
1 Reply
Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Don't.
4 Reply
Ori SklootPro Member
Investor · Berkeley, CA · Member since 2016 · 242 posts · 304 votes
8y
I'm thinking that your numbers and those of other respondents doesn't include any soft costs (design, permits, utilities to the parcel, etc). Looking at only the build costs can be deceiving. I haven't seen a decent med/high level spec build in the local Bay Area (not sure about Scotts Valley) for under $300/sqft in a while. I would say more commonly would be $400/sqft all-in.
4 Reply
Ori SklootPro Member
Investor · Berkeley, CA · Member since 2016 · 242 posts · 304 votes
8y
@Chris Mason the man who gets to the point. Care to expound in your comment?
1 Reply
Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Originally posted by @Ori Skloot:
@Chris Mason the man who gets to the point. Care to expound in your comment?
Hi Ori,
Supply/demand for skilled GC labor is way out of whack in the Bay Area. You, specifically, I have reason to believe know people and have some relationships. Others are builders or developers that can get some economy of scale going, same for established flippers.
IMO, for one-off new construction, leave it to the pros. Unless one is walking into it knowing full well they are acquiring a luxury item, and not investing. In which case, hey, go for it. It'll probably be better than buying a new Lamborghini in terms of value of the asset the day you "drive it off the lot" / finish building the property.
3 Reply
Pavan Sandhu
Developer · Sacramento, CA · Member since 2016 · 464 posts · 143 votes
8y
check this out": https://mobile.nytimes.com/2018/03/05/style/prefab...
1 Reply
Robert C.
Investor · San Francisco, CA · Member since 2016 · 338 posts · 444 votes
8y
@Jonathan Pflueger, I'll second @Ori Skloot's estimate. $350-$400/sq ft all in. I'm building one now, and that's what it looks like with a super experienced gc. And the target for construction costs keeps moving. I was comparing real numbers for a project from last year vs. this year, and there's already looking like a 10%+ increase from the subs.
3 Reply
Robert Rayford
Investor · Las Vegas. Jacksonville, Bay Area Ca, Nv, Ca, Fl · Member since 2015 · 511 posts · 220 votes
8y
I agree with @Chris Mason, Ground up construction in the Bay right now is a very expensive venture. The numbers won't pencil out in most areas. Not only that but every contractor that I know whom can handle a spec build is at lease 18 months out. The last time I pulled a permit for a spec build in San Francisco there was a 13 month waiting period because of the backlog in the Building Dept. Hayward is about 4-6 months and Oakland varies depending on if they pull in contract counter help and plan checkers. A good Designer or Architect would be busy and the Structural Engineers that I work with are swamped. By the time you get off the ground the market may shift. I remember the 2 homes I was building in the Bay Area back in 2008-2009 and the customers lost all funding because of the collapse. I lost over $100k because of timing.
Heck I am doing additions and remodels for $300sf. It is best to buy a older home with a large footprint, tear down and rebuild. This way you will have entitlement and under ground in place. A lot less time this way, zoning and planning depts will turn over fast.
3 Reply
Jared W SmithBusiness Member
Architect · Westchester County, NY · Member since 2018 · 682 posts · 476 votes
8y
The problem with "price per square foot" cost for construction..
[excerpt from here: https://sghomebuilders.com/blog/be-careful-when-comparing-price-per-square-foot/]
"Betty and Braxton are looking for a builder to construct a two story 2,000 sq ft home with finished basement adding an additional 800 sq ft of finished space and a two car garage with 560 sq ft. While searching for price per square foot quotes they received three bids.
Contractor A – Contractor A was a bit busy to break the quote down and gave Betty and Braxton a quote of $160/sq foot of finished space. Betty and Braxton took the total sq footage (2,000 + 800 + 560 = 3,360) and multiplied it by the $160.00 quote for a total price of $537,600.00 (3,360*$160.00).
Contractor B – Contractor B broke the quote down into above grade space and below grade space giving Betty and Braxton a price of $170/sq ft on the above grade and only $55/sq ft for the finished basement. This time Betty and Braxton took the 2,000 sq ft plus the 560 sq ft in the garage since it was above grade (2,560 * $170.00) = $435,200.00 and further added the basement cost of (560 * $55.00) = $30,800.00 for a total of $466,000.00
Contractor C – Contractor C broke the quote down into three areas, above level ($180.00/Sq FT, basement ($55.00/Sq Ft), and for the garage ($27.00/Sq Ft). One more time Better and Braxton did the math ($180.00*2,000 = $360,000.00) + ($55.00*800 = $44,000) + ($27.00*560 = $15,120.00) = $419,120.00
The bottom line is the more details that you can obtain from your contractor up front the better you can understand what it is you are paying for and to be able to better compare quotes."
Do your due diligence and provide the contractor as much information on what you want as you can to get ball park cost. Otherwise their cost are pointless. Like comparing apples to oranges.
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Zander Eng
Architect/Investor · San Francisco, CA · Member since 2016 · 8 posts · 4 votes
8y
Another thing to consider: there will be a range even within "medium to high end" new construction in the Bay Area. The cost to build "medium" in Hercules can be dramatically different from "high-end" in Atherton.
1 Reply
Jonathan PfluegerPro Member
OP
Ben Lomond, CA · Member since 2016 · 338 posts · 337 votes
8y
@Ori Skloot
I had not thought of an "all in" cost per sqft - this makes sense and I feel it is a much better way to approach a potential project. Great point about soft costs, I had thought about them but I was not sure how to incorporate them into the project as whole.
@Chris Mason and @Robert Perry
Great points - makes me seriously reconsider getting into a new build, especially since it would be my first. I do know a really good GC (25 year family friend and sterling reputation in my area for SPEC houses) and I have access to a off-market land deal with a killer view that is buildable (county verified).
The market makes me nervous as well. What if the project takes 2 years to complete, what could the market look like then... Thank you very much for the insights.
@Jared W Smith
Great examples, thanks!
1 Reply
Ken BuckPro Member
Specialist · Crested Butte, CO · Member since 2015 · 105 posts · 25 votes
6y
Any infill opportunities in lower middle price ranges? We can do@ $100/SF w/o site costs
0 Reply
Ken BuckPro Member
Specialist · Crested Butte, CO · Member since 2015 · 105 posts · 25 votes
6y
@Robert C. how'd your build end up on the all in price/sf?
0 Reply
Tushar Dubey
Palo Alto, CA · Member since 2017 · 3 posts · 0 votes
6y
Hi all, just revisting this thread as I just started working with an architect on a new Berkeley CA build of two homes on a flat lot near 4th Street. I'd love to chat with some of you who have recently built in the SF Bay Area, especially if you have either an excellent contractor to refer, or horror story you wouldn't wish on anyone else. Thanks!
Tushar Dubey
0 Reply
Doug Woodville
El Cerrito, CA · Member since 2015 · 257 posts · 129 votes
6y
@Tushar Dubey I'm interested in building in the east bay just north of Berkeley. Have you moved forward on your project?
0 Reply
Gi'angelo Bautista
Flipper/Rehabber · San Francisco, CA · Member since 2017 · 176 posts · 70 votes
5y
There is an investor who does his ground up new construction in the South Bay for $200/sq ft. He finds the sub contractors, while hiring a GC to manage. The house he just sold took a year to purchase and sell.
2 Reply
David Santos
Member since 2018 · 5 posts · 5 votes
5y
Given the increase in raw material - Any input on how much it would cost for ground up construction in Oakland?
Looking to do a lot split for a 9000 sqft parcel then build new house from the ground up.
0 Reply
Kerry Fendley
2884 Water Street Fremont · Member since 2021 · 3 posts · 0 votes
5y
Always remember this MATH EQUATION:

2 different contractors building the EXACT SAME HOME = 2 Different PRICES !
0 Reply
Tushar Dubey
Palo Alto, CA · Member since 2017 · 3 posts · 0 votes
5y
Originally posted by @Doug Woodville:
@Tushar Dubey I'm interested in building in the east bay just north of Berkeley. Have you moved forward on your project?

Yes Doug, it's taking some time, but still proceeding. Public hearing soon, then use permit, then hire/pay more consultants (soils, structural, etc), then apply for building permit. Soft costs are high.
0 Reply
Dharti Pancholi
Member since 2021 · 1 post · 0 votes
3y
Hi @Jonathan Pflueger Could you please guide me the GCs that quoted you 150 or lower. I am building a new construction and with current house prices, it only make sense if I build the house for around 150$/sqft. I may consider up to 200$/sq ft if quality and comfort is better. Thanks a lot for your help
0 Reply
Tom Fidrych
Member since 2020 · 241 posts · 179 votes
3y
Quote from @Dharti Pancholi:

Hi @Jonathan Pflueger Could you please guide me the GCs that quoted you 150 or lower. I am building a new construction and with current house prices, it only make sense if I build the house for around 150$/sqft. I may consider up to 200$/sq ft if quality and comfort is better. Thanks a lot for your help

This conversation started in 2018 and prices have skyrocketed since. A contractor I know in the bay area said $400/sf and up not including site development and permits.
2 Reply

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