Many people who are contemplating building a new home are surprised at the cost of construction. The sticker shock is often due to the expectation of the same costs that were available during the recession. Our firm’s historical data of residential construction show that the average new home construction costs are still 38% less expensive than the few years before the great recession. So now is a good time to consider renovating or building a new house, while costs are greater than 2010 they are still less than 2007.
Many areas of the hot and humid South have higher construction costs because they are in a hurricane zone or an earthquake zone, or both. The requirements to mitigate both of these hazards include the following:
- Building the first floor above FEMA’s base flood elevation which adds to the foundation cost.
- Structural Engineering fees to design code compliant structural systems.
- Connecting the roof, through the walls to the foundation and footing with threaded rods, go-bolts, hurricane clips or other code approved methods. This adds to both the material and labor costs.
- The shear walls required for lateral stability are more expensive than sheathing options available in other parts of the country.
- Window and door openings must be protected from windblown debris. Impact rated windows can cost up to twice as much as non-impact openings.
There are several best practice options that will cost more initially but will either save money on your home insurance or utility bill that we recommend.
- A secondary roof under a metal roof that ensure water tightness if the roof is compromised during high winds.
- An U.L. certified lightning protection system will add $7,000 to $10,000 to a 2500 s.f. house but will protect your house and electronics from lightning strikes during our many lightning storms.
- Spray foam insulation is typically 2 to 3 times more expensive than fiberglass insulation but is a far superior product. It stops air and moisture infiltration, will not sag, keeps dust and pollen out and reduces capacity requirements, maintenance and wear of heating and air conditioning equipment.
TV remodeling shows also add to unrealistic time and cost expectations. Those shows often have donated materials, low cost fees from the contractors and have pre-built a large portion in a warehouse prior to the show.
Cost, square footage (both inside and outside) and quality of materials and workmanship are the triad of construction. If cost is the driving issue in your project you must be flexible in the size of the project and the quality of materials and workmanship.