patrick.net

From my friends experience I know that that it takes about 10 time longer to build that buy an existing home. It takes a lot of steps, decisions.

KILLERJANE says

From my friends experience I know that that it takes about 10 time longer to build that buy an existing home. It takes a lot of steps, decisions.

Thinking saying and doing need to line up.

A friend of mine, the contractor, built a house with a help of his teenage son. It took him a few months but they were determined and knowledgeble of course.

Shutdown The Liars says

We're earning profit at roughly $55/sqft. Doesn't include lot, utility connections(or well and septic) and site package.

A friend of a friend was building large developments in southern Ca. He said excluding land cost and site prep costs (roads and utilities) their costs for labor and materials was $35/sf. This was just before the crash.

Should be easy enough to research a few home builders stocks to see exactly how profitable it really is.

I fI had to guess, I'd say it's profitable to do so even now, and way moreso when the housing bubble is going on.

"The National Association of Home Builders in their recent report shows the current average cost to build a house is $79.67 per sq. ft excluding land, builder profit and overhead, financing costs, and marketing and sales costs."

Land and/or site prep can be a large portion of the cost depending on where you are building, the type of lot, access to utilities, etc.

$35/sf sounds low... just based on the price of materials - even if the contractor gets a wholesale discount.

Troll Hunter says

EastCoastBubbleBoy says

Land and/or site prep can be a large portion of the cost depending on where you are building, the type of lot, access to utilities, etc.

$35/sf sounds low... just based on the price of materials - even if the contractor gets a wholesale discount.

So don't buy a lot that requires anything but mass excavation.

See how that works?

So how about some listings of houses you've built?

Go for it.

CL says

Wouldn't this vary from community to community, for labor?

Naturally, but that's not the point of the question. A good answer to the question would give the medium costs of building a middle class house in the U.S.

A better answer would include a sampling of areas from low-cost to high, like Idaho, South Carolina, Boston, NYC.

A great answer would give a map of the U.S. with the median cost per sq.ft. of middle class houses around 2000 sq. ft. with the map painted from green to red by the cost per sq. ft. and a legend depicting the various price ranges.

And that's how you answer a question like "How much does it cost to build a house.". Now to answer the question "How much profit is there in homebuilding?", do the same as above only replace the cost per sq. ft. to the profit margin as a percentage per sq. ft.

Of course, answering either question requires having actual data, which is why the only answer you ever get from the Internet on questions like these is "it depends" and "it varies". True, but completely useless answers.

"A great answer would give a map of the U.S. with the median cost per sq.ft. of middle class houses around 2000 sq. ft. with the map painted from green to red by the cost per sq. ft. and a legend depicting the various price ranges."

Right. So couldn't we get a pie chart showing what percentage went to materials labor, profit, or FINANCING?

Then we'd know the markup on each, and how much room could be squeezed out of buying a house.

Seems like without it, no wonder home buying apparently defies the traditional improvements of Capitalism.

And it would clearer identify who makes out on this biz.

bob2356 says

So how about some listings of houses you've built?

Not sure if that comment is even directed at me, but I’ll freely admit I’m not a builder. But I know that land (at least in my area) isn’t exactly cheap. Additionally, I have friends and relatives in building / surveying / civil engineering fields. Based on their input I have priced out what it takes to go from raw land  a fully engineered lot  a well built house. It’s an expensive endeavor. MHO is that some in these forums greatly underestimate the cost. Heck even if they are spot on – you know the old adage - you get what you pay for.

In short, about six months ago I looked into the possibility of building, but it wasn’t feasible for me – at least not right now. A 2500 ft2 colonial was going for $100/ft2. And that’s assuming I had the land to put it on.

My uncle is a builder. There’s this one development he’s working on now. Owns the land and builds to spec. He’s still doing OK, all things considered – so far as I can tell. Next time I see him, I’ll ask him how much profit he’s really seeing these days.

EastCoastBubbleBoy says

bob2356 says

So how about some listings of houses you've built?

Not sure if that comment is even directed at me,

Nope, it's for trollhunter who claims to be "making" $55 a ft. Still waiting. Don't know what the fascination is with a new house anyway.

If you are considering building, you have to investigate a modular home. We did and it was a great experience and the cost to build was lower while still getting a great house.

Definitely do your research. Spend the time to learn as much as possible before you jump in. We bought the book from here and it was a huge source of info.

http://www.modularhomesnetwork.com/

Good luck!

What about building using shipping containers or a sand bag home. Does anyone know what kind of savings for either?