Breaking Down the Costs of Building a Home
Here at RP Homes, we strive to build affordable, intentionally designed homes for all demographics. Since May is Affordable Housing Month, what would be a better time to talk through the costs of building a home?? While some things are obvious like purchasing the land and building the framing there are a couple more sneaky costs. Let’s walk through them together!
Land: 20-25%
One of the highest percentages of the cost of your home is from the ground it is built on. Land and civil site work play a significant role in shaping the affordability of housing projects. The availability and cost of land directly impact the feasibility of developing affordable housing units. In areas where land prices are high or limited, it becomes increasingly challenging to acquire suitable land at a reasonable cost, potentially driving up the overall project expenses. Additionally, civil site work, including site preparation, infrastructure development, stormwater management, utility connections, and even the road in front of your home, can significantly impact the affordability of housing.
Permits: 1%
Construction building permits depend on your area’s local laws and the size of your home. It is also possible that you will need permits for garages, utility hookups, or patios. Most municipalities inspect every step of the home building process from foundations all the way to issuing a Certificate of Occupancy clearing the home for you to move in.
Foundations: 13%
The cost of the foundation depends on where you live and the state of the property. It is important to get a professional opinion on the type of foundation you need based on the land you are building on.
Framing: 15%
Framing is when the vision finally starts to come together. The outer support beams of your home determine the layout and number of floors.
Home Systems: 14%
Home systems contribute to about 14% of the overall building price for good reason. Home systems include the HVAC, electrical, and plumbing that keep your home running.
Exterior Finishes: 9%
This section includes all design choices on the inside of your home including siding, roofing, windows, and exterior doors. In total, these home elements can quickly add up. When making these selections it is important to consider local climate and weather conditions to ensure the outside of your home is long-lasting. Show off your style with window and door selections to make your home pop!
Interior Finishes: 23%
Interior finishes are what turn your house into a home and are also the largest percentage of the cost of building your home. In this stage, you will determine the interior design and choose appliances and home systems. The total price for all interior finishes highly depends on materials and square footage. Insulation, drywall, painting, interior doors, trim, flooring, cabinets, countertops, and light fixtures are all included in this category.
Additional Costs
There are many additional expenses included when building a house that we did not include in this analysis. Quality of furniture or appliances can add to your cost as well as additional outdoor structures such as a deck, driveway, garage, pool, and landscaping.
The RP Homes’ Method
Building with RP Homes allows you to have input in the design of your new home without the stress of going through the project by yourself. Working with our experienced contractors and professionals the building process is as seamless as possible. Building in one of our beautiful neighborhoods assures many amenities and a close-knit community. Don’t make it more complicated than it needs to be! Know costs upfront, avoid the stress, and move into a beautiful home perfect for you. If you are interested in building in one of our communities contact us. We can’t wait to hear from you soon!
