Most expensive metros for new builds

Most expensive metros for new builds

tampa, FL · Member since 2014 · 86 posts · 23 votes

Had a question regarding cost of building in medium and larger sized metros but not mega cities. This would exclude extremely large cities like LA, Chicago, NY, SF, PHI and smaller cities like Boise but include cities like Dallas, Houston, Atlanta, etc. I heard Grant Cardone talk about a strategy he has of finding out where it costs more in permits and time to build than it actually does to renovate and entire property. For example, I think he said something about a neighborhood he has 1 of his properties in SD costing something like 100k just for a permit to build and then you had to buy land, etc. That creates a barrier to entry that's hard to beat. Wondering if anybody knows on average which cities are cheaper and have less barriers to entry vs which are harder to build new construction.

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  • Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes
    11y

    The only way to know is a permit expediter or if you have the time, pickup the phone and ask the city. Pretty much you have a better luck when you ask if they have 1 inspector for all trades. One or more of the cities in LA/SD has 1 inspector per trade, that means if you call for inspection on plumbing, electrical, fire, you will get 3 inspectors while some cities only one. One city, I couldn't remember which, charges $25/fixture when most do not, I was changing sinks and toilet into granite countertops on an apartment complex and the permits ran about $7800 for 102 rooms. They charged because we "touched" (remove the toilet, installed flooring, replaced wax ring, re-mounted the toilet) the fixtures. Each inspection (4 visits) lasted for 3 minutes, that's almost $700/minute, sad but true, while other cities I don't need permit.

  • Investor · DFW, TX · Member since 2013 · 319 posts · 101 votes
    11y

    @Fred Conway You do realize that Dallas and Philly aren't that different in size right? Philadelphia (city) has about 24% more population than Dallas (city). However the DFW MSA has about 15% more population than the Philly area MSA (which also happens to span 4 states!)

    Great question, and I would really like to hear some thoughts from folks on this as well. The other thing Grant said on the podcast, and I think it's a really good start - focus on the blue states first (big government = big headaches). Not a political statement, just strictly business.

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