Florida Construction Costs: Key Factors That Influence Your Budget
Planning to build your house in Florida? Good choice. Florida is the home to the world’s most pristine beaches and lush waterfalls. But even with beautiful landscapes, the cost to build a house in Florida is not exponentially high compared to other states like California.
Still, we would suggest you add some buffer to your estimated Florida construction cost, as there are too many factors that can suddenly increase your final payment. Today we would like to take you through such factors one by one and get you ready for the journey.
So, let’s start. Shall we?
Understanding Average Florida Construction Cost
The price of construction materials like steel, and concrete has increased rapidly due to the ongoing Russia-Ukraine war. And, the supply-chain issue has increased the dependency on wood, causing its price to soar high as well.
Currently, it can take you around $450,000 to $475,000 to construct a mid-range 1500 sq ft house in Florida. Please keep in mind that the estimation doesn’t include the fees to the architect, land purchase cost, or the fees to get permits from local authorities.
Here’s a breakdown of the cost of building houses with various difficulty levels. We have assumed the construction area to be 1500 sq ft, as it is the ideal size for a three-bedroom apartment.
Construction Type | Range (per sq ft) | Approximate final cost |
Basic Builder-Grade | $100-$150 | $225,000 |
Mid-Range | $200-$300 | $450,000 |
High-End Smart Home | $400-$600 | $750,000 |
5 Key Factors That Influence Your Construction Budget
Site Accessibility & Landscape
Palm Beach, Tampa Bay, and Miami are some of the most expensive sites in Florida. You get a beautiful ocean view for the rest of your life. But, the cost to buy land can increase significantly as you switch from standard to luxury sites.
For example, you have to spend around $50,000 to $100,000 for a piece of land in North Florida, while the price can increase 50 times if you choose Palm Beach.
Zoning Laws & Local Building Regulations
The design of your house will affect the ultimate cost. But, the design itself is subjected to local zoning laws. In each state, including Florida, residents are supposed to get approval for their house plan before starting the construction.
So, you can’t just build the house however you wish. Some rules are to be followed like how big the lot size can be, how tall the building can be, etc. Sticking with these guidelines is crucial if you want to avoid future legal issues.
Insurance Policy Guidelines
It is not just the local zoning laws that play a part; your insurance policy also plays a part. Florida is known for facing wild climates and hurricanes throughout the year. That’s why insurance companies in Florida stipulate certain weather-proofing features in the house if you want to access premium policies.
Installing impact-resistant windows, doors, hurricane shutters, flood vents, high-quality insulation, and a waterproof basement are some of the features on the “to-do” list that make you eligible for home insurance in Florida. Basic weather-proofing can easily require around $ 10,000 to $25,000.
Complex Design
It’s a no-brainer, to be honest. The more difficult your home plan is, the more money you pay to get it executed. Just change the stair design of your home from strain to spiral and you are spending at least $1500 more. It’s simply because spiral staircases are more complicated to install.
The same goes for designing every aspect of your house. The choice of material also matters. Italian marble or tempered glasses are slightly in the high-end price range.
Advanced Or Smart Home Features
Installing a highly efficient HVAC system will cost you around $8000 to $16,000. And, such a heating or cooling system requires ductwork. That alone can cost somewhere between $7000 to $12,000. As you move from basic home utilities to smart and voice-controlled features, the cost will reasonably increase.
Smart lighting fixtures, auto-adjust ceiling fans, fingerprint or PIN-based door locks, etc are smart home features and have a huge impact on the final cost of building your house.
Buying VS Building In Florida-A Brief Cost Overview
We know the purchase price of even second-hand houses in Florida is dramatically high. And, that pushes many people to prefer building from scratch.
But beware. Building a house in reality comes with so many hidden costs. And, when the numbers add up, you will see how much money and effort you could have saved by paying for an existing house. Let’s explain it.
Here is a 3-bedroom house in Wycliffe with a golf course view, listed for $465,000. For impeller calculation, let’s assume you will pay the same amount to buy all the construction material, and pay the architect for designs and renovating it. Still, it will take you a minimum of 1.5 to 2 years to move in.
During this time, you have to rent a house for your family. Considering a modest $1500 rent per month, that adds up to $36,000. On the other hand, you get to move in within 50-60 days of buying a house; almost immediately.
As for the construction material, the price has exploded and you have to pay an extra sales tax (almost 6%). Let’s not forget how lengthy and complicated the process is to get a permit from the city planning department.
Installing a new sewer line, gas line, and other utilities will cost you a mountain. When everything is done, you will find the $465,000 payment for a ready-made house more attractive.
