I am asked this question quite often. What most people will pay to build a house will be different from what I would pay given my experience in building so I can’t give you a good number. The number that I hear most general contractors and homebuilders on the Peninsula throw out is $400 to $500/sq ft. The problem with giving a number like this is that it is always unclear what’s included in that number. When most people think of square footage, they are thinking living space. That’s the number that you see when you buy a house. When you construct a house, it’s more covered space square footage. Garages and covered porches add significant cost as there is still flooring (porches), painting, drywall (garages), finishes, and other items but these areas don’t add to the reported square footage of the house. General contractors will generally add in a certain price per square foot for these areas, but there is no fixed ratio. The other variable is whether landscaping, hardscaping, demolition, permitting costs, school fees, architectural costs, engineering costs, etc. are included in this number or is that actually the construction cost of the house itself.
In addition, a lot depends on the cost of the subcontractors (which can vary wildly by 2-3X sometimes), size of the house, general contractor markup, the amount of change orders, and finish materials (e.g. lights, cabinets, countertops, plumbing fixtures, and amount of trim details). Ultimately, it doesn’t really matter what people mention as the price per square foot to construct. Only the bids you receive from general contractors or home builders matter. Email me if you have questions about budgeting and building costs.