The Cost of New Construction?
Trying to weigh buying a very rundown old house that needs a costly gut renovation versus buying a lot for less money and starting from scratch. Can you weigh in on ballpark costs of new construction per square foot in Brooklyn (Williamsburg). The house we would build would be around 25 wide x 35 deep…
Trying to weigh buying a very rundown old house that needs a costly gut renovation versus buying a lot for less money and starting from scratch. Can you weigh in on ballpark costs of new construction per square foot in Brooklyn (Williamsburg). The house we would build would be around 25 wide x 35 deep and would be 4 stories (3 family). Would renovating the crappy house still be a ton cheaper? What about the tax ramifications? Thanks so much for any input!
Let me be gentle about this. I get calls from the contractors who promise $150/ft – but when the time comes to bid for the work, they come in much higher. I have to conclude that they are closer to telling the truth the second time they are asked.
For all of its potential – and I agree with JimHill about this – there are only a few successfully built custom prefab projects in NYC that I know of – there’s the switch building on Norfolk St., and there is a Lot Ek project that has a “quasi” prefab piece. I am sure that both of those projects were nowhere near $150/ft.
For mass-prefab, there is the company in the Navy Yard. They specialize in low-income housing, and have a minimum 20,000 sf production run. Anyhow – it sure would be good if someone stuck their neck out and blazed the trail.
$150/sf:
Just yesterday a contractor quoted me that over the phone when discussing a project with standard block bearing wall and steel framing. Granted, he’s no one I’ve worked with, nor have I seen the work, and this was a phone quote sight unseen, and maybe he’s got ‘recession specials.’ But yes, $150 per sq ft for new construction in this town is dirt cheap.
More importantly, however, is that this illustrates the ability of custom-prefab to provide a low cost alternative to the standard labor and material intensive construction practices we’ve grown accustomed to.
I actually sat down with architects to talk about doing a container house project for six families and the math definitely erred on the side of buy-and-renovate. This was maybe five or six years ago.
I also talked to a guy who manufactures modular container homes, he seemed to think that the construction wasn’t the big issue — you’re also looking at pouring a new foundation and getting permits squared away.
Was going to raise the prefab option, but it looks like Empyrean, which was building the Dwell houses, is in receivership. http://www.deckhouse.com/
Still:
http://www.dwell.com/articles/101-prefab.html
BH – If it does actually cost less to do as you say, and build new on vacant land, wouldn’t the shell cost less than the vacant land? I suppose the equation would depend a lot on the particular problems inherent in the building. If the existing building is truly distressed and the work required is extensive, you might have a point. Still want to see the $150/ft new construction…
architect66,
My comment incorporates the idea that you are going to have to pay more for an existing building than you will for a vacant lot. I think the cost of buying a lot + building new will be less than buying a shell + renovating.
I want to see the $150/sf new construction!
As another architect, and longtime reader of Brownstoner, I can say that I’ve seen prices for renovation and new construction posted here and in my practice, both starting at $150 or $200 a sq ft. The deciding factor is just how much renovation does the existing house need? If it’s got significant structural issues, such as cracked masonry or sagging beams and joists, or you want to do an addition or significantly change the interior layout, then it may be more cost effective to go with new, or at the very least a total gut. If the layout is fine and all you want to do is fix it up, then by all means renovate.
I’ll throw in another possibility, which is new modular construction. I’ve been working with a custom home prefab builder in the area that can do up to four stories in stick frame construction, with lots of green/sustainable features (radiant floor heat, bamboo floors, recycled glass countertops, blown in foam insulation in 2×6 walls, etc.) for about $100 a sq ft in just a couple months from final design to completed move-in.
Of course there are a few other costs that would go into it, like the foundation (but there’s a chance you could re-use the existing foundation), but even then these are some significant savings, not to mention the amount of rent and mortgage you’d be saving by eliminating months of on-site work.
If you’re interested in going this route, please give me a call or email (click on my username for my website and contact info).
Jim Hill, RA, LEED AP
Urban Pioneering Architecture
jim(at)urban-pioneering(dot)com
www(dot)urban-pioneering(dot)com
As someone with a 22×34 house (old), I would add that if you are building new, try to go 40′ deep. The extra 5′ will give you a lot more flexibility to tuck in a half bath, separate the dining room if you want, and many other options. Our width gives our house great proportions, but a few extra feet of length would have opened up possibilities.
I don’t agree with Boerum Hill. For residential construction, new is substantially more expensive than renovation. There are major expenses associated with new construction that you don’t have with renovation – things like foundation work, underpinning, new utility services, major structural work, building enclosure (walls, roofs, windows, insulation, waterproofing, etc.). There are also higher engineering and inspection costs associated with new building.
That said, if you are building new, you have flexibility and freedom that you might not have with a renovation, especially in integrating mechanical systems. In theory, you should also have an easier time with finishes, since in new construction the walls are expected to be straight and plumb, and the floors are supposed to be level.
Swade, I think that you would save both time and money renovating the crappy house, but you might have to compromise on the design and functionality you envision. I’ll go out on a limb and say that a “typical” renovation will cost you maybe on the order of magnitude of 1/2 to 2/3 what a similar new building would cost.