New home construction cost can vary quite a bit. They vary by location, and they vary according to the type of materials used. Cost also varies considerably by the size of your home. Further the length of your mortgage is a huge variable in determining how much you will actually pay for your home. Considering these factors can help to lessen the cost of construction considerably.
It costs up to 50 percent more to build a home in California than it does in the Southern United States. Northern homes cost up to 40% more than Southern homes. The cost of homes is impacted by average wage in the area and the cost of materials in the area. Building costs are directly related to the cost of living in the area.
While it may seem completely unfair for Californians to pay so much for housing, it is accounted for in higher wages in the north and west. The fact is that economies vary in different parts of the world and in different areas of the U.S.A. as well. Housing costs vary with them. A man making six figured in California may not be able to buy a home in California. He could easily afford a home off six figures in rural North Carolina or Georgia, but he would probably not be able to find a job where he could earn six figures. The point is that while it may not be equal in dollars and cents, it is equal in the value of a dollar in each state.
For example, in northern states basements are more common because it is important to place the foundation below the frost line so it won’t crack. In certain areas in the south however, it is nearly impossible to keep a dry basement, because the water table is higher than the floor of the basement. Some people still have basements but many of them experience three inches of water in them, about twice a year. Crawl spaces are more successful in areas with high clay content, while in the same areas termites will plague a home built on a slab. In the north, insulation is even more important than in the South, and roofs must have a steeper pitch to shed more snow. In the west where the weather is dry, some of the alternative materials such as adobe work better than they would in a damp climate.
There is a new kid in town and it’s called Green Construction. For decades a small but determined group of builders have been obsessed with affordable green housing. These dedicated men have fought long and hard for the acceptance of less expensive and more efficient alternative building materials. Due to recent changes in politics they are finally being heard.
It is still very difficult to get inexpensive, practical and superior green materials through the building codes. It can be hard to receive a building permit but attitudes are gradually changing. If you are a cause fighter, ready to take on city hall, you could get a home for as little as $11,000 though you’d probably want to increase it to $40,000. If you are interested, look into Ferro cement, insulated concrete panels and pumice blocks. Depending on the climate you could also consider rammed earth, straw, adobe, and even rice board. There are affordable housing experts willing to help you find a contractor in your area, and even help in pitching the idea to city and county officials.
The affordable and sustainable housing veterans all agree that American homes have gotten too big to be practical. In terms of construction, heating and cooling, a small home is much more economical and sensible. Many of them advocate building homes of as little as 250 – 450 square feet, and then adding on as needed. They use great design features to make the home seem larger.
The affordable housing “add on” idea is a great one, provided you aren’t dealing with subdivision restrictions. With the add-on idea, you can build a tiny home, just right for one or two people. Either pay cash or take out a five or fifteen year loan. When you are ready, build on a room or two. Later you can add even more if you like. If a home is planned for extension from the beginning, adding on can be simple and it avoids paying all the interest involved in a 30 year loan.
Costs can be high for construction but they do not have to be. If you are willing to be patient with building on you can save over half your costs. If you are willing to take on a political fight for green materials you can get a better and cheaper home. It is important to remember that the single most expensive part of building a home with a 30 year mortgage is the interest. A 5 or 15 year loan on less principle will save a huge amount of money. Typically a 30 year mortgage doubles the actual cost of your home. Therefore any money savings you make in construction are worth twice the price. There are many ways to use variables to reduce new home construction costs, so take advantage of the ones that suit your needs.