What is the Cost of Construction?

​That is the million-dollar question. It is however like asking how much a car costs without knowing if you are considering a Rolls Royce or an entry level car. That said, I will do my best to answer this sometimes-difficult question without rhetoric. In my mind, there are three basic components to the cost of a newly constructed house. First off, you have the land cost. Here I am talking about a “finished” lot that is developed and ready to build on. Secondly, there are the infrastructure cost. Those are typically anything outside the walls of the house like, the driveway, landscaping, water and sewer hookup. And, finally the cost of the actual house itself. The land and infrastructure cost are close to the same for the neighborhood, but, the house cost can vary widely, so we will concentrate on that here. This last one is what most people are after when the cost of the house question comes up, but the land and infrastructure costs are important too and are necessary to be able to make an apple to apples comparison of different homes. Here in SW Montana in the summer/fall season of 2018 the cost of a middle grade house will be $200 to $250 per sf for a middle grade home. That number can move quickly sometimes. That is the average and comes with some assumptions that might not apply to your personal home. We assume granite counters, hardwood floors, a better grade of windows/doors and an upper grade of construction quality. Builders are understandably queasy about giving out these numbers for lots of reasons, mainly because we don’t know what someone’s expectations are when they ask, and we don’t want to give such a casual answer without knowing some specifics about the project. Not all builders include the same things in their price either, this is where it gets hard to compare. Ultimately, the most accurate way to get a price for an upcoming project is to have a conversation with a builder experienced with your type of undertaking or better yet, have some plans drawn with some specifications to use as a guideline. The more you define the project, the more reliable and accurate the builder’s pricing will be. Always remember that pricing is perishable and will change as time goes as well as the supply and demand factor. Right now, builders are struggling to fill their schedule with able bodies. This makes for price increases. The key to this is in the planning. Take the time to develop a good set of accurate plans and form a relationship early with your builder. That is the best chance for a reasonable build in a very busy time.