COST OF CONSTRUCTION – NOT $100 PER SQUARE FOOT ANYMORE
This morning I was listening to an interview with an insurance expert on NPR. The interview centered around homeowners not having enough insurance to rebuild their homes in the event of a catastrophe – in this case the wildfires burning in the southern part of California.
The insurance expert made some reasonable claims, noting that some homeowners try to keep rates down by not “advising” their insurance companies when renovating or adding to their homes, something that can come back to bite if the house burns to the ground later. The thing that caught my ear – like a fishhook – was the next thing he said.
I’m paraphrasing here, “Most homeowners should insure their homes for at least $250 per square foot, $300 per square foot to be safe, to rebuild.” Granted, the figure represents Los Angeles prices, and may include furnishings and contents, but it confirmed what I’ve been telling clients for at least five or six years. The elusive $100 number is pretty much dead (dead, dead, DEAD!) for single-family one-off homes in the U.S. There are a handful of exceptions, sure. Upon investigation, most are built by truly spartan individuals who are also handy enough to install a 100 amp panel unaided, know the difference between a ground fault circuit interruptor and a heat pump, and can quickly explain what board-feet means. How many of those people do you know?
Many couples come to Locus expecting to build a house for $100 per square foot. After telling me what they want, I hate to have to tell them the house they describe is likely to exceed $200.
Having said that, when I find the contractor that does excellent work at half the hourly rate others are charging, puts in 50 hours of hard work for the cost of 30, cuts no corners, drives a pickup that’s been converted to run on solar power, and brings organic fruit to the jobsite for the owner’s kids every day, I’ll post the contact information right here as soon as my new home is built.