Sticker Shock! Build Cost for High-end Home

[Anand S.]

Hi Folks,

We are in the process of finalizing our plans for a Spec home in Fort Lauderdale. Specifics are:

- 4200 SQFT

- 3 stories with a rooftop deck

- Elevator

- 5 Bedrooms

- 5 Full baths, 2 Half baths

- Requires 30 FT Pilings

- Block construction

- Impact windows

- Retail price point of $2.5MM+

We are in the process of obtaining GC bids and are looking at experienced contractors with solid track records. I am shocked at some of the initial estimates. I've received quotes of $450/SQFT for end-to-end construction including finishes. Their rationale for this price point are the increased tariffs and demand.

My question is twofold 1) What $/SQFT are you seeing for new construction for a similar home? and 2) would waiting for the tariff war to abate and for demand to slow affect pricing, or are these typically ratcheted up with no hope of correcting substantially?

[Nik Moushon]

Your biggest enemy right now is demand. Contractors took one of the biggest hits of any profession during the last crash and the ones that survived have barely made it so. With the last ~5 years of the market really swinging upwards they have expanded somewhat but not like most other professions and really no new contractors have joined the ranks. Most that left in 08 either just retired or changed professions. So there is actually a HUGE shortage of contractors nation wide. Especially good quality contractors. Handyman turned contractors are a dime a dozen now but contractors with real experience and do good quality work are in high demand across the country. 

In my area they are turning down jobs left and right for better paying ones. Heck, I'm hearing more and more stories of contractors up and leaving in the middle of a project for a better. They will even leave with being unpaid at points. Thats how crazy its getting out here and I'm sure its similar everywhere. 

The tariffs are costing materials to go up for sure but on average its not a huge amount because its very material specific so it could be low or high depending. $450/sf does seem high to me but not that high for a $2mil + price tag. I would'vs guessed a $400-425/sf number but its just a guess.