Dive Brief:
- Median prices for single-family homes started in 2014 ranged from $80 per square foot for spec homes in the East South Central division to $159 per square foot for contractor-built homes in the Pacific and New England divisions — the most expensive in the U.S. — according to the National Association of Home Builders' analysis of the 2014 Survey of Construction data.
- As in 2013, the most expensive spec homes were in the Middle Atlantic region, with a median sale price of $149 per square foot.
- On average, contractor-built homes, according to the NAHB, are more expensive per square foot than spec homes, indicating that new custom home buyers are willing to pay extra for more expensive features and materials. The Middle Atlantic division, however, is the exception, where half of spec homes cost more than $149 per square foot, and the median cost for contractor-built homes is $120.
Dive Insight:
National square footage prices rose for both custom (4%) and spec (2%) homes, when compared with 2013, driven by rises in median contract price per square foot in the Middle Atlantic division (17%) and sales price per square foot in the West North Central (16%) division, although the West North Central division saw a slight decrease in contract prices per square foot.
The most economical homes were started in the South, where median sales price per square foot ranged from $79 in the West South Central division to $85 in the South Atlantic division, both below the national median sales price of $89 per square foot.
The NAHB figures exclude the cost of lot development and include completely finished floor space, not including garages, carports, porches, or unfinished basements or attics.
Annual changes in median square footage prices may reflect changes in building costs, as well as a shift in the mix of less expensive and high-end homes. The 2014 rise in square footage prices, for example, could be a result of the shift toward high-end homes, rather than toward more entry-level properties.