How much would it cost to build a new house in California?

Question

I am looking at houses and they are still too high priced in California. We make almost $90,000 a year and don't really have too much debt at all. If us college graduated and into our career people are having a tough time finding a $200,000 house, then I wonder how other people afford $270,000 houses.

The other thing I wonder about is how California's prices are so much higher than out of state. The price of wood, labor, and other building materials can't be THAT much more expensive than out of state prices.

So we are looking for a 1900+ square foot home for low $200,000 which is hard to find and probably not out there at this moment. But we have seen links for small houses on large properties for $80,000. So how much would it cost to demolish the old house and build a new one that is 1900 square feet?

Answer 1

As you acknowledged California is a high price market.  It is not the building materials or labor that makes California expensive.You cannot compare it to other states because it has more to offer in the way of outdoor activities and year round sunshine.  Its the place people want to be from the laid back lifestyle on the beach to a career in Hollywood and everything in between.  You may have to put your dream home on the back burner and settle for a less expensive home like a condominium or accept a neighborhood that is not your first choice, or move further out towards the desert.  It depends on what you’re willing to sacrifice to get your foot into the door.

Answer 2

Building costs out here are approximately $200 to $250 a square foot for a basic house. Plus, there's a $50,000 fee they charge you for new construction. Demolition isn't that expensive, but it might tack on an extra 10 grand. So, you're looking at about $450 to $500K for a 1900 square foot home.

What you can consider is buying a smaller home and remodeling it. If the place is 1000 square feet, you can add 900 square feet onto it. You don't pay for the $50K new home fee and there's only half the square footage cost. So, now you're looking in the $150-$175K range.

Answer 3

It's not the MATERIALS that drive up the price, it's the plot of LAND that the house sits upon.

It would be more expensive than you think. You would have to demolish the foundation and existing utility lines, and establish a new foundation and larger infrastructure to accommodate your larger home.

But in order for this to be of any financial benefit for you (taking your example), you would need to contract out the demolition and new construction all for around $150k. I'm talking design, taxes, permits, project management, shipping, construction, and commissioning. That will not be easy to do, but you're welcome to investigate it.

Answer 4

Plain Jane design? $150 per sqft.

Custom and stylish? $280+ per sqft.

Why are California homes expensive? Supply and demand, as you've seen. There is little to choose from, and this is in the midst of a major collapse of housing prices!

So, whatever is available gets multiple offers and prices remain high.