Homebuilders Downsizing New Homes
Filed under: Price Per Square Foot
Some large national homebuilders are reducing the size of homes they are building in an effort to reduce the cost and make them more affordable. KB Homes, Warmington Homes, and John Laing Homes all have scaled down floor plans as the industry seeks to stem losses due to falling home prices, tighter mortgage lending standards and skittish buyers.
For these builders the trend in smaller homes is a reversal of more than two decades of expanding floor plans, during which median size single-family homes went from less than 1,600 square feet to more than 2,200 square feet. This can help reduce some costs, but it is not so simple. While these builders have talked about reducing the cost to buyers based on reducing the total square feet of the home, the reality is that square feet is just one component of cost.
The cost of the land, the well (or water connection fee), the septic (or sewer connection), and many other costs of preparation and construction are completely independent of the square feet of the home. Other costs are related, but not major factors.
Rick Anderson of Anderson Homes in Port Angeles, Washington, points out that the quality of materials used throughout the home and the level of workmanship are the largest variables. A craftsman style home can be smaller (1,800 square feet) and still cost as much as a larger (2,600 square foot) home. Customer choices for materials and options can move the cost per square foot up or down substantially.
Another option to keep costs down for customers today is to have their builder leave the basement, upper floor, or garage unfinished. When they can afford to, they can come back and finish those rooms.
To look at a variety of floor plans, take a look at Anderson Homes Floor Plans. As Rick Anderson likes to say, “A custom home is just a home built the way you want it.”
Possibly Related Posts:
- Sequim Home Builder Estimates Online
- Less Than $40 Per Square Foot?
- Building a New Custom Home and Saving Money
May 2nd, 2009 at 7:36 pm
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