Single Family New Construction Cost

Houston, Texas
General Real Estate Investing
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Single Family New Construction Cost

Dalton Dillon
Member since 2021 · 13 posts · 4 votes

Hello everyone,

My recent post regarding this topic was very vague so I'm reposting it.

I own 2 single-family lots in the suburbs of Houston, Tx. They are each roughly 10k sqft. I'm looking to build 2 spec homes at 2000 sqft on stilts. Each will be 3 bed 2 bath with enclosed 2 car garage. I already have plans for both homes but have not moved forward due to the quotes I'm getting. New construction does not seem to make sense whether you keep it as a rental or build to sell. 

Builder/Investors, what are you spending per sqft? 

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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
1y

@Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

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  • Lauren CutchenBusiness Member
    Real Estate Agent · The Woodlands, TX · Member since 2019 · 236 posts · 89 votes
    1y

    I believe I've heard about $120/sf for the cost of building. Stilts- is it in a flood zone? 

    [email protected]832-406-4239
    Lauren Cutchen 513 Reviews
    WebsiteView Page
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  • Dalton Dillon
    OP
    Member since 2021 · 13 posts · 4 votes
    1y

    Hi @Lauren Cutchen Thanks for the response. Yes, it is in a flood zone with a BFE of 14ft.

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  • Lauren CutchenBusiness Member
    Real Estate Agent · The Woodlands, TX · Member since 2019 · 236 posts · 89 votes
    1y
    Quote from @Dalton Dillon:

    Hi @Lauren Cutchen Thanks for the response. Yes, it is in a flood zone with a BFE of 14ft.


     Get a good structural engineer and work with the county with permitting. One of my toughest sales was a raised home in a flood zone. Keeping thorough records helped save the negotiations. 

    [email protected]832-406-4239
    Lauren Cutchen 513 Reviews
    WebsiteView Page
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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    1y

    @Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    1y
    Quote from @Matthew Paul:

    @Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

    What he ^^^^ said. And $120 SF is a price from the 1970s in my experience. Even in Houston, I would suspect you'd pay $250 SF minimum, especially with a trick build like that on stilts.....What do you think, @Matthew Paul ?

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  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    1y
    Quote from @Bruce Woodruff:
    Quote from @Matthew Paul:

    @Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

    What he ^^^^ said. And $120 SF is a price from the 1970s in my experience. Even in Houston, I would suspect you'd pay $250 SF minimum, especially with a trick build like that on stilts.....What do you think, @Matthew Paul ?


     The $250 a sq ft sounds about right . But we dont build on stilts around my area 

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    1y
    Quote from @Matthew Paul:
    Quote from @Bruce Woodruff:
    Quote from @Matthew Paul:

    @Dalton Dillon Yes , building new does make sense , it is economical . Except you are not the builder  Having a house built by a builder , you are paying their profit . When you become the builder , then the numbers work 

    What he ^^^^ said. And $120 SF is a price from the 1970s in my experience. Even in Houston, I would suspect you'd pay $250 SF minimum, especially with a trick build like that on stilts.....What do you think, @Matthew Paul ?


     The $250 a sq ft sounds about right . But we dont build on stilts around my area 


    I've only done that once (more like a pole house actually), and it adds a lot more moving parts. Wth spot footings and all that.....I'd say maybe even higher....?

    1Reply
  • Dalton Dillon
    OP
    Member since 2021 · 13 posts · 4 votes
    1y

    @Bruce Woodruff @Matthew Paul How are you guys making numbers work at $250 sqft? I'd suspect high sales prices in your area? Houses in your most avg suburbs of Houston don't cost $500k. Houston has its expensive areas but pretty affordable overall.

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  • Chris Kersey
    Real Estate Agent · Houston, TX · Member since 2022 · 135 posts · 84 votes
    1y

    While the build cost will cost more in a flood zone in Harris county, $250/ft for an investment build is absurd. 

    Also you need differentiate your construction costs (hard cost) vs the development costs (soft costs). 

    For comparison, I just completed two new build duplexes in a flood sone in central Houston using a builder for these and my Hard + Soft costs were $149/ft. the only additional cost to factor in was the land. 

    Keep in mind these are duplexes so double kitchens, appliances, hvacs ect.... greater cost than a single family. 

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    1y
    Quote from @Dalton Dillon:

    @Bruce Woodruff @Matthew Paul How are you guys making numbers work at $250 sqft? I'd suspect high sales prices in your area? Houses in your most avg suburbs of Houston don't cost $500k. Houston has its expensive areas but pretty affordable overall.


    Pricing is obviously higher in some areas, but even in Houston you should be at $250+ SF. In AZ and Cali, they are even higher by a lot. You may not be able to make a great profit in today's climate, but that is changing and changing fast. Still figure on $300 SF for your budget.

    1Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    1y
    Quote from @Dalton Dillon:

    @Bruce Woodruff @Matthew Paul How are you guys making numbers work at $250 sqft? I'd suspect high sales prices in your area? Houses in your most avg suburbs of Houston don't cost $500k. Houston has its expensive areas but pretty affordable overall.


     $500K gets you a 1969 split foyer in a decent neighborhood in my area . And thats for something close to original . 

    You can make the numbers work , but they will be close . 

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  • Dalton Dillon
    OP
    Member since 2021 · 13 posts · 4 votes
    1y
    Quote from @Chris Kersey:

    While the build cost will cost more in a flood zone in Harris county, $250/ft for an investment build is absurd. 

    Also you need differentiate your construction costs (hard cost) vs the development costs (soft costs). 

    For comparison, I just completed two new build duplexes in a flood sone in central Houston using a builder for these and my Hard + Soft costs were $149/ft. the only additional cost to factor in was the land. 

    Keep in mind these are duplexes so double kitchens, appliances, hvacs ect.... greater cost than a single family. 

     @Chris Kersey That is more of the ballpark I was expecting. It's nice to hear from an investor who is doing the same thing in the same market.  Would you be willing to share the builder you used for your duplexes?

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    1y
    Quote from @Chris Kersey:

    While the build cost will cost more in a flood zone in Harris county, $250/ft for an investment build is absurd. 

    Also you need differentiate your construction costs (hard cost) vs the development costs (soft costs). 

    For comparison, I just completed two new build duplexes in a flood sone in central Houston using a builder for these and my Hard + Soft costs were $149/ft. the only additional cost to factor in was the land. 

    Keep in mind these are duplexes so double kitchens, appliances, hvacs ect.... greater cost than a single family. 


    If Chris is actually doing this in your area, then listen to him. Still do your own math though....not that I wouldn't trust him, but every house and every neighborhood is completely different. And the cost for a 2x4 or a sheet of drywall are the same, so I guess the labor costs are dirt cheap down there in H-town!

    1Reply
  • Mak J.
    Member since 2018 · 234 posts · 44 votes
    2mo

    What are the quotes you getting?

    0Reply
  • Pietro Galli
    Developer · Houston · Member since 2021 · 7 posts · 1 vote
    1d

    Hi Dalton,

    I'm a builder here in Houston, we recently completed a somewhat similar project a 3b2.5b two stories spec homes.

    The price per sqft can throw you off because what matters is what finishes will give you the best ROI in your area.

    If you already have the plans it's gonna be easy to tell you how much you should aim for.

    0Reply
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