3 Ways to Reduce Building Costs
At present, building in WNC costs $350-500 per square foot. That’s a record high. A new, 2000 square foot house costs $700,000 to build including materials, labor, and contractor fees — but not including land, utilities, or septic systems. Naturally, to alleviate costs many clients search for the cheapest builder.
That’s rarely a good idea: the cost of a house is dictated almost entirely by its design and selections. A good, knowledgable builder will participate in the design phase and steer you towards affordable, achievable choices.
Keeping the design simple is the best way to keep overall construction costs down. The house on the right could potentially have similar square footage as the house on the left while also being cheaper to construct and maintain
1. Simplify the Form
Keeping the design simple is the best way to keep overall construction costs down. The house on the right could potentially have similar square footage as the house on the left while also being cheaper to construct and maintain. A simple floor plan will result in simpler elevations and lower labor and material costs. A smaller floor plan (with multiple stories) will also result in construction savings.
The Foundation. The more corners a house foundation has the more complicated and expensive it will be to construct—from foundation to roofing and framing, to finishes. The simplest and cheapest house to construct and maintain has 4 corners. When a homeowner or architect adds corners to the design it adds costs. The owner should ask themselves these questions: Do the added corners make the house more livable or functional? Do they add visual appeal? Are the additional costs and maintenance worth it? If the answers are no then simplify. Complicated roof lines drive up construction costs and usually result in more leaks and maintenance costs.
The Roof. Many new home designs try to mimic the appearance of older homes by looking like they’ve had many additions over the decades, but complicated roof lines and an overabundance of dormers drive up construction and maintenance costs. Every dormer in a house is an opening in the roof—which exposes the house to potential water and structural issues. New construction is an opportunity to avoid these issues. After 20 or 30 years, the roofline might be modified anyways, so it’s wise to start with a simpler form.
Garage, Porches, Decks. When adding value to a home, heated square footage is the gold standard. Garages and covered porches require nearly all the same costs but might only appraise for 30% of what the interior spaces do. Unless the space is easily converted, try to limit the scope here.
2. Build Up, Not Over
This reduces the cost of grading, foundation, and roofing. Foundations and site work are expensive in the mountains, which is why this strategy is doubly true in Western North Carolina. These points can not be over-emphasized:
Keep construction expenses down by limiting the size of the footprint.
Build up (towards the sky), not over (across the ground)
Try to maintain the shape as much as possible through all levels.
When a home is vertical rather than horizontal, like in this illustration, there are no added roofing or foundation costs. Adding a second floor and a finished daylight basement in this design is relatively cheap square footage and brings the overall price per square foot down! Elaborate lofts and upper levels that require many dormers are an exception to this strategy.
3. Select Smart Finishes
Reducing finishes is a great way to reduce the budget but be aware that if the first two strategies are ignored, the house will still be comparatively expensive regardless of selections. “Smart” finishes as products that are cheaper and are at least as functional as their more expensive alternatives.
Reduce Flooring Costs. Hardwood floors add value and character to a home and, in my opinion, are suitable investments. If necessary, money can be saved by putting carpet in the bedrooms. Vinyl/linoleum is cheaper than tile and can be a good alternative for kitchens and bathroom floors. Authentic hardwood floors and carpets are not a good choice in humid areas like daylight basements—finished concrete or laminate flooring is a cheaper and more appropriate option here.
Exteriors. Brick and stone can be four times as expensive as other finishes. Be aware that cultured stone (synthetic) and actual stone cost about the same. It is cheaper to apply stucco over block walls than wood frame walls. For this reason, I would recommend fiber-cement stucco panels over exterior walls if this look is desired- this will reduce construction and maintenance costs.
Tile. Tile labor and materials cost quickly add up. Tile is typically used near plumbing appliances, like kitchens and bathrooms, but ironically it’s not the best material to repel water. Water can enter through weakened grout and damage subfloors, walls, and framing without the owner knowing it. Acrylic insert showers and tubs are superior in controlling water because they have fewer or no seams, and they have the added benefit of being more affordable than custom tile work.
Countertops. I do not like the cheapest option, which is laminate countertops- water and wood fibers are not a good combination. A laminate countertop could become worthless in 5 years with careless use. Solid surface (plastic) or entry-level quartz or granite are the most functional and maintenance-free options for the money. Be aware that if too much money is spent on countertops, the additional expense will not be recovered at resale.
Masonry Fireplaces. If there is any chance that the house may become a long-term rental, it might be best to omit the fireplace entirely.- there are fire and safety concerns regarding solid fuel burning appliances, including the possibility of Carbon Monoxide and Nitrogen Dioxide poisoning – especially when the fireplaces are improperly installed, used, or maintained. Homeowners who must have a fireplace can reduce their budget by choosing a wood stove or a factory-built firebox insert over a masonry fireplace and chimney. A wood stove is an excellent heat source, easier to maintain, and requires only a metal flue to exit the roof or the wall. If an open fireplace is a must, I would recommend a factory-built firebox insert which saves the expense of building a masonry hearth, chimney, and liner. A wood mantel and surround are cheaper than masonry. If the design demands it, builders can frame a wood ‘chimney’ above the roofline and side it with fiber cement or wood siding. Stucco and masonry finishes are upgrades.
Architectural Timbers, Trusses & Brackets. Although these details can be a vital part of the mountain aesthetic, be aware that they are rarely structural– the actual heavy lifting is performed by hidden standard framing. If the budget needs to come down, homeowners can work with their architect and builder to choose a few select embellishments without breaking the bank.
Custom Windows. Custom-sized windows can be twice as expensive and may require twice the lead time as off-the-shelf windows. If the window package is pricey, ask your builder to bid on the project using standard sizes instead.
Final Thoughts
These strategies will not work for all buyers and designs (we all like to splurge on some items) however, this guide can help homebuyers and builders make decisions during the design and finish process that will help them achieve their budgetary goals.
Another good option for people looking to build a new home in our area is to buy a larger plot with a smaller or older house that already has utilities. Older plots are often larger and more desirable than in-fill lots. Buying an existing property can reduce the cost of utilities and provide the buyer with a place to live during construction.
This article outlines three powerful strategies to maximize square footage and quality while keeping the price-per-square-foot ratio down. The first two strategies depend on innovative design. The third strategy depends on a frugal selection of finishes.
Most of the recommendations in this article have the double benefit of keeping construction AND maintenance costs down, which is essential if the house is owned longer term. There’s a lot of good information here—things I’ve gleaned from being a designer, builder, home inspector, and estimator. I hope this article helps those who want to bring more affordable houses to the market by adding value with economical designs and selections.
Designing a smaller house is perhaps the best way to keep overall costs down, but this article is about keeping the relative cost or the price per square foot ratio down.
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This article is adapted from Builder Buddy Home Inspections in Asheville, NC. Many thanks!
