West Coast region reports costliest contractor-built homes
Contractor-built homes cost nearly 80 percent more per square foot on the West Coast than in the East South Central division of the U.S., according to a survey by the National Association of Home Builders (NAHB).
The median price per square foot, excluding the value of improved lots, is $155 for contractor-built homes in the Pacific division, which encompasses Washington, Oregon, California, Alaska and Hawaii. At the lowest end of the median price spectrum, at $90 per square foot, is the region that includes Alabama, Kentucky, Mississippi and Tennessee.
NAHB estimates are based on the Survey of Construction (SOC) data using information from interviews of builders and owners of selected new houses.
|Region||Median Contract Price|
Per Square Foot
Per Square Foot
|West North Central||$118||$107|
|East North Central||$114||$101|
|West South Central||$93||$92|
|East South Central||$90||$86|
Source: 2017 Survey of Construction (NAH Estimates)
NAHB noted highly variant land values cannot explain the regional differences in per square foot cots. "Higher and rising regulatory costs undoubtedly contribute to higher per square foot prices," they stated.
The builder analysis also explained the difference in square footage costs of custom homes versus spec homes (excluding improved lot values), suggesting buyers of custom homes tend to be willing to wait longer to move into a new home and are inclined to pay extra for pricier features and materials.
The Survey of Construction uses all completely finished floor space, including space in basements and attics with finished walls, floors, and ceilings. The calculations do not include a garage, carport, porch, unfinished attic or utility room, or any unfinished area of the basement.