Whether it is a new home or a cherished haven that one has owned for some time, adding elements to one’s living space that reflect individual style and turn a mere dwelling place into a home is always a rewarding experience.
Remodeling or restoration allows the incorporation of modern amenities into an outdated space that can enhance the living experience and make life more blissful.
However, it is not every day that one embarks on a project to build or completely transform their homes for the better. So, for someone who is not a part of the industry, it is easy to get overwhelmed with the various stages involved in a home building or improvement project.
It is certain and understandable that budget consideration is a major factor in most construction or remodeling projects. For people struggling to navigate the complexities of an upcoming construction project, here’s a guide through all the factors essential to understanding construction costs while building a home.
Residential Construction Cost Breakdown
As fascinating as the thought of owning a dream house may be, it can easily overwhelm a person not knowledgeable about construction. There are a plethora of things that need to be arranged, negotiated, and decided- from the type of home to the color of the paint. It is undoubtedly one of the most ethereal experiences but it comes with its challenges. The very first challenge is to finalize the budget and stick to it.
While knowing the average cost of the desired home size is a good start, having a list of the major expenses in front might be a great help to decide the budget allocation according to priority. Here is an average itemized cost breakdown of residential construction–
BUILDING PHASE
Land Costs
Home Building Permit Costs
Material Costs
Contractor Charges
Electrical Costs
Roof Installation
Plumbing Costs
HVAC Installation Costs
Home Interiors
Home Interior Designer Costs
AVERAGE COST (2023)
$37,000 per Acre
$5,000
$147,500
10% – 20%
$7,500 – $12,500
$3,262 – $36,700
$12,000
$12,500
$20,000
$5,400
Average Cost of Building a 1500, 2000, 3000 sq ft House in Florida
Registering the highest internal immigration in a recent study by the Joint Center for Housing Studies of Harvard University, Florida remains one of the most coveted locations for homebuyers. Along with the long coastlines and attractive communities in the Sunshine State, what also attracts home buyers is the building cost due to the low labor cost of the state. The average home building cost in Florida is $147 per square foot, which sits close to the higher end of the corresponding country average of $100 – $155 per square foot depending on the location, size, and whether the design is modern or custom.
Based on the given current rates, a minimum-size house (800 square feet) would cost around $117,600, while a maximum-size house (5000 square feet) would cost about $735,000, and the average range stands at $295,000.
However, according to Forbes, the average cost of building a 2000 sq ft house in Florida follows the data below:
1500 sq ft- $197,730
2000 sq ft- $263,640
3000 sq ft- $395,460
It should be noted that the mentioned rates are exclusive of land costs, permit fees, excavations, and other associated expenses. Additionally, the final cost of a house is dependent on various factors, including the type of house (custom or production homes), location, design, finishes and features, type and quality of materials, and more. These additional costs and variables can significantly impact the total cost of the project. If you want more custom information and an estimate, give us a call at (352) 645-7561.
Labor and Materials Cost Breakdown
Materials and labor are the two major factors that make up the majority of construction expenses. These are also two factors that can vary significantly based on the local rates in the area of construction. It’s a good idea to request a custom and detailed quote to get specific information about your desired project. Nevertheless, the following provides a general estimate of material and labor costs one can expect while building a house.
EXTERIOR COSTS
1. Excavation: It is the first step and refers to digging out soil and rock from the land to create a leveled base for the foundation. It costs about 1.2 percent of the total cost or $1.50 per sq. ft.
2. Foundation: It is one of the most crucial parts of home construction and constitutes about a significant 3.7% of the total cost. The average cost to pour a concrete foundation is $26,800.
3. Framing: The stage at which the house starts to take a form, framing involves metal or lumber structures to give the house its preliminary shape. It can cost from $12,000 and $40,000 with an average of $25,000 based on the material.
4. Roofing: It is one of the most expensive parts of home building or repairing. Asphalt shingle is the most common choice in Florida and can cost from $7,500 – $14,000 for a full roof replacement.
5. Siding: It is imperative for the durability of the house to have strong side structures. Brick, wood, stucco and vinyl are the most commonly used materials in that order (Census Bureau’s SOC). Siding costs can range from $5.00 – $15.01 per sq. ft. for brick siding to $3.56 to $11.05 for vinyl siding.
6. Landscaping: A great way to customize and beautify the outside of the home, landscaping can totally transform the look of the house. Landscaping costs range from $2,600 to $13,700.
INTERIOR COSTS
1. HVAC: The heating, ventilation, and air conditioning system or HVAC enhances the comfort of a house drastically and can range in cost from $7,000 to $16,000 depending on the size of the house.
2. Plumbing: The cost of plumbing depends majorly on the material used and the size of the house. The cost of installing plumbing in a new house can range between between $1,500 and $17,500 and averages at $6,000.
3. Electrical: The cost of electrical installation can range from $2,000 to over $6,000. However, it is highly dependent on the wiring material, type of electric panel, floorplan, and the number of switches and outlets.
4. Insulation: Based on the type of insulation – batting, blown-in, or spray foam – this process for energy efficiency and comfort in a house can cost about $4,000 or $1.50 and $5.00 per sq ft.
5. Drywall: The building starts to look like a home from the inside once drywall is installed and it can cost between $8,000 – $30,000 for a 2,000 square foot house. It needs to be installed on all the walls and ceilings.
6. Doors and Windows: The cost of doors and windows depends on the quantity, quality, position, and type. The cost of installing a front door can range from $450 to $1,700, while indoor doors can cost between $165 and $3,000.
7. Cabinets and Countertops: The price would be determined by the type and quality of the material as well as the level of customization requested. However, the cost of cabinet installation can range between $2,200 and $24,600 for a 150 square-foot kitchen.
8. Flooring: The price depends on the type of flooring, such as hardwood, laminate, vinyl, tile, or carpet. The cost of flooring materials can range from $1,500 and $4,500 for 500 sq. ft.. To give some perspective, by square footage, carpet costs range from $2 to $5 plus labor costs of $1 to $3 per sq. ft. while hardwood goes from $3 to $12 material costs plus $3 to $9 labor costs per sq. ft.. Flooring costs can vary significantly and adapt to exactly what you envision for your home.
9. Lighting Fixtures: Again, your selection within a wide range of quality, types and prices will determine the cost of your fixtures. The fixture prices will range from regular ceiling lights at $70 – $250 material plus labor to luxury chandeliers at $220 – $3,400. Consider that the average home has between 27 to 37 fixtures.
10. Appliances: Installing appliances is one of the last material expenses in the construction and completion of a house. Kitchen appliances approximately cost a sum of $3,800 and it does not include countertop appliances.
Cost of Building A Custom Home in Florida by Square Feet
A custom home is tailored down to the smallest detail to suit the specific requirements and preferences of the owner. People opt for custom homes so that their homes aptly reflect their style, and taste, and cater to their specific needs.
The cost of building a custom house varies from one house to another as a result of different choices in terms of the location, quality of material, budget, design, quality of craftsmanship, and more.
A 2022 report by the National Association of Home Builders (NAHB), suggests that the average cost of construction for a 2,561 sq. ft. home is $392,241. Depending on the chosen construction method, below are the rough estimates of building a custom home in Florida by square feet:
SIZE
800 sq ft
1,000 sq ft
1,500 sq ft
1,600 sq ft
2,000 sq ft
3,000 sq ft
3,500 sq ft
4,000 sq ft
5,000 sq ft
COST TO BUILD (MODULAR)
$48K – $80K
$60K – $100K
$90K – $150K
$96K – $160K
$120K – $200K
$180K – $300K
$210K – $350K
$240K – $400K
$300K – $500K
COST TO BUILD (STICK-BUILT)
$88K – $108K
$110K – $135K
$165K – $202K
$176K – $216K
$220K – $270K
$385K – $472K
$440K – $540K
$550K – $675K
Cost Breakdown of Home Remodeling Projects
Building a custom home is generally more expensive than buying a tract house or a home addition. By conducting some renovations and remodeling in a tract house, the appearance and ambiance of the house can be significantly altered to reflect the owner’s style at a comparatively lower cost than building a custom home.
Renovating or remodeling a house can enhance the look of a house recently bought or an existing home beyond recognition when done right. However, it is a time, effort, and money-intensive project, for which the cost can be anywhere between $20,000 – $100,000 depending on the scale of renovation and the quality of materials used. Below a an itemized cost breakdown of a home remodeling project based on the room type:
ROOM TYPE
Kitchen
Bathroom
Bedroom
Living Room
Dining Room
Office
Attic or basement
Foyer
Laundry room
Closet
Garage
AVERAGE COST (2023)
$10,000–$50,000
$9,000–$20,000
$10,000–$15,000
$5,000–$10,000
$2,000+
$5,000
$12,300 to $33,300
$1,000–$10,000
$2,000+
$1,000+
$3,000–$15,00
Detailed Cost Breakdown of Bathroom Remodeling
For many, their bathroom is the most relaxing space in their house, a place to unwind and recharge. Eventually, it may require renovations to accommodate the evolving needs of the user and to incorporate modern fixtures and facilities. Depending on whether it is a small and practical powder room or a full-fledged master ensuite luxury bathroom, the cost of remodeling can vary from $2,500 for the most affordable projects to $30,000 for the most high-end materials. On average, the cost of remodeling a medium-sized bathroom is approximately $10,000.
Here’s a general idea of how much remodeling a bathroom can cost:
REMODEL ITEM
Shower
Countertops
Cabinets
Toilet
Vanity
Flooring
Paint
Plumbing
COST
$500 – $5,000
$200 – $1,000
$270 – $400
$80 – $5,000
$100 – $2,800
$45 – $200
$30 – $60
$250 – $1,500
Detailed Cost Breakdown of Kitchen Remodeling
The kitchen should be a convenient and inspiring space to unleash culinary artistry and reduce efforts and time. However, appliances and design preferences may change over time, calling for a kitchen remodeling. The average cost for kitchen remodeling is approximately $27,000. The general cost breakdown of a kitchen remodeling is as follows:
ITEM
Cabinetry
Installation and labor
Appliances and ventilation
Countertops
Flooring
Lighting
Backsplash
Walls and ceilings
Doors and windows
Faucets and plumbing
PERCENTAGE OF BUDGET
29%
17%
14%
10%
7%
5%
5%
5%
4%
4%
AVERAGE COST
$6,700
$4,600
$3,800
$2,700
$1,900
$1,400
$1,400
$1,300
$1,100
$1,100
Detailed Cost Breakdown of Door Installation
Doors are more than just a protective barrier from the outside or a partition inside. A front door has a lot to do with the curb appeal of a house, while an indoor door adds to the overall aesthetic of a house depending on the type of door chosen. The average cost for a front door installation ranges from $450 to $1,700, while the average cost of installing an interior door ranges from $350 to $1,100. Below is an itemized cost breakdown for door installation:
ITEM
Door Slab
Hardware & Supplies
Jamb & Stop
Framing
Labor
Total cost
INTERIOR
$30 – $350
$30 – $150
$50 – $300
$110 – $220
$90 – $350
$200 – $1,150
EXTERIOR
$150 – $1,000
$50 – $150
$50 – $300
$130 – $380
$230 – $800
$480 – $2,250
Detailed Cost Breakdown of Home Additions
Whether it is to expand the living space, create a new area for a specific activity, or add to the aesthetic appeal of the house with a front porch or a balcony, a home addition can truly add to the value of a home. The latest data reveals that the average cost of a home addition, depending on the type of construction and quality of labor and materials, can be anywhere between $22,500 – $74,000 or $90 – $210 per square foot. Below is the estimated cost breakdown of a home addition based on the type of room.
ROOM
Garage
In-Law Suite
Front Porch
Bump-Out
Mudroom
Cantilever
Balcony
Dormer
Greenhouse
Entryway
Basement
AVERAGE COST
$14,100 – $42,300
$78,000 – $135,000
$2,900 – $20,000
$5,000 – $30,000
$7,500 – $25,000
$10,000 – $30,000
$3,000 – $10,000
$2,000 – $25,000
$500 – $6,000
$700 – $1,200
$24,000 – $46,000
Cost Breakdown of Home Restoration Projects
Cost Breakdown of Mold Remediation
Mold poses multiple threats to houses as well as the inhabitants. It may damage the structural integrity of a house, produce unpleasant odors, affect the aesthetics of the house, and introduce health risks. It is important to have it removed professionally for a healthy and happy home. The average cost of mold remediation is $10 and $25 per square foot. The average cost breakdown of mold remediation in terms of square footage is as follows:
AREA SIZE
50 sq.ft.
100 sq.ft.
150 sq.ft.
300 sq.ft.
500 sq.ft.
1,200 sq.ft.
REMEDIATION COST
$500 – $1,500
$500 – $1,500
$1,500 – $4,500
$3,000 – $9,000
$5,000 – $15,000
$12,000 – $36,000
Cost Breakdown of Water Damage Restoration
Water damage restoration is a critical service, especially in a disaster-prone area like Florida. When addressed promptly, water damage can be minimized, saving cost and labor. Water damage restoration can cost a sum between $1,300 and $5,600. Below is a cost breakdown of water damage restoration based on the type of water damage, where class 1 indicated small water leaks, class 2 means water damage in the whole room, class 3 damage affects every part of the room, including ceiling and walls, and class 4 is considered full-fledged flood damage:
WATER DAMAGE CLASS
Class 1
Class 2
Class 3
Class 4
PRICE RANGE
$150 – $500
$550 – $1,000
$1,100 – $3,200
$20,000 – $100,000
Frequently Asked Questions About Construction Costs
Building a house is a consuming process, and when the house is one’s own, the stakes are even higher. There are a lot of questions related to various aspects of construction that may bother a homebuyer, such as the process, people involved, the roles, the cost, and a lot more. Below are answers to some common queries.
What is a Pre-Construction Service Agreement?
A significant amount of organizing and planning goes into the construction process before the physical construction starts on the ground level. This is called the preconstruction phase and it is crucial to the overall building process because it allows the client to fully articulate their vision while enabling the contractor to explore and propose practical and effective ways to bring that vision to life.
A pre-construction service agreement (PCSA) is a formal document that defines the relationship and exchange between the client and the contractor before the actual construction contract is signed. The main purpose of this contract is to record and analyze the technical details of the project and, according to that, provide detailed cost estimates for each element, both in terms of overall project costs and specific cost breakdowns.
Pre-construction services help the client understand the technicalities of the construction project well in advance and reach a consensus on how much of their vision can be accomplished. This significantly enhances buildability, design, and cost-efficiency. It also leads to a dependable and trusting relationship between the client and the contractor, making further interactions comfortable and easy-flowing.
The preconstruction activities by the contractor, from the initial site visit to costing and scheduling, can take anywhere from a few weeks to a couple of months, depending on the project’s scale, and typically costs about 1-3% of the project budget. The major activities comprising the pre-construction services conducted within the PCSA are:
- Project Planning: Identifying the scope of the construction and establishing primary project goals that reflect the client’s vision of the development.
- Design Definition: Collaborating with architects and engineers to ensure that the design and construction plans are in alignment and determine the most practical approach to materialize the client’s vision.
- Value Engineering: Adjusting material and technique to improve project efficiency and cost-effectiveness without compromising the quality of the construction.
- Risk Assessment: Anticipating potential challenges that may arise and figuring out the most efficient mitigation strategies without affecting the progress.
- Site Layout Planning: Preparing a construction area layout to organize and coordinate logistics, traffic control, and material delivery.
- Cost Estimation: Providing initial cost estimates of the construction including material, labor, equipment, and more based on the project requirements and design concepts.
- Timeline Scheduling: Creating a sequence of sub-projects with assigned timeframes to ensure the project stays on track, with flexibility as needed throughout the project.
What Is Project Management?
Project management is the critical job of overseeing and managing the overall process of construction. It is the process of establishing and maintaining coordination among all factors for smooth operation. It also involves the procurement and management of materials and human resources, ensuring the project is completed on time while maintaining quality standards. Below are certain crucial tasks that come under project management with respect to house construction:
- Project Planning: This refers to creating a plan for the construction process in terms of objectives, scope, requirements, resources, timeline, and more.
- Budgeting: It involves cost estimation, detailed budget making, and checking the expenditure to ensure everything remains within the budget.
- Scheduling: This refers to setting a precise timeline for each task to ensure that the construction process remains in alignment with the project’s deadline.
- Resource Procurement: This is the arrangement of material as well as human resources, including labor, materials, and equipment required for construction.
- Risk Management: This involves devising a mitigation and solution strategy for potential risks that emerge during the construction for undisturbed progress.
- Quality Assurance: This means examining the quality of material and craftsmanship during construction to ensure they meet the standards.
What is General Labor?
In the simplest terms, the part of the construction crew that is involved at the ground level is the general labor. The term refers to unskilled and semi-skilled workers who do not have specialized expertise or training but are essential to the smooth running of the construction process. They are responsible for all the physical and manual labor that takes place at a construction site. The national average salary of a construction laborer is about $32,302 per year. Some of the vital tasks performed by general labor during house construction are:
- Demolition Process: They help take down the existing structure, if any, on the construction side and clear debris from the area.
- Ground Preparation: During the process of excavation, they help clear the ground, dig, and level the ground to prepare the site for foundation.
- Material Management: The transport as well as loading and unloading of materials and equipment is generally done by site laborers.
- Site Maintenance: They are responsible for keeping the site clean and organized for the construction process to go smoothly.
- Assistance: The assistance requirement for skilled workers such as carpenters, plumber, and electricians are also provided by the general labor.
What is Included in the Contractor Fee?
A contractor is central to any construction project due to the critical role of management and supervision they play. This role includes but is not limited to, project management and building relationships with the client, as well as other parties, including subcontractors, suppliers, and labor. Their role and fee depend on the scale and complexity of the project and vary from project to project.
The contractor fee is the amount paid to the contractor above the construction costs to compensate for their valuable services during the whole course of the construction process. Here are a few things that are included in the contractor fee:
- Subcontractor Management: This refers to the contractor’s effort in establishing a productive relationship with the subcontractor and managing deliverables.
- Labor Management: This covers the maintenance cost of hiring, training, and managing a construction labor team.
- Material Management: This involves the cost associated with the procurement and maintenance of materials and supplies.
- Overhead Expense Management: It encompasses the overall cost of sustaining a construction business, including office, equipment, insurance, salary, and other costs.
Shouldn’t Project Management and General Labor Come Out of the Contractor Fee?
For people who don’t run a business and are unaware of the costs associated with it, it is easy to assume that the contractor fee goes straight to the contractor’s profit. This may seem substantial to a client sometimes. However, it is crucial to understand that the contractor fee includes not only the profit but also the overhead expenses of the contractor. Now, the fact that contractors have overhead expenses may also be news to some people. To clarify, some of the overhead expenses of a contractor include salaries of employees, office maintenance, insurance, accounting and legal fees, advertising, sales commission, licenses, taxes, tools and equipment, and their own salary.
Considering all these factors, the costs of project management and general labor may be manageable within the contractor fee for small home projects. However, for substantial projects like new home building or remodeling, the contractor fee is a separate expense that clients must be prepared to incur. Moreover, cutting down on the contractor fee for an expensive and sentimental project like a house, subsequently compromising on the value of service, is not a wise decision by any discerning homebuyer.
What are the Industry Average Markups?
Contractor markup is an amount added by the contractor to the total job cost to incur the overhead expenses and make a reasonable profit. The markup amount varies depending on factors like location, scale, and complexity of the project. The industry average contractor markup ranges from 20% to 35%. It has also been reported that more than 30 percent of the contractors mark up projects by 25 percent and more.