Florida offers a wide range of attractions, and it’s one of the best places for building your dream home. Many people continue to move to the state each year, which means the demand for home building has never been greater. Learning all about the housing market in Pensacola is always a good idea to help you determine the average cost of building a home here.
Average Cost to Build a Home in Florida
The average cost of building a single-family home in Florida can range anywhere from $240,000 to $350,000. Most homeowners can expect to pay around $390,000 for a brand-new three-bedroom ranch home that’s around 2,300 sq. ft. The location of your house and the price of building materials used during construction can also play a key role in the costs of having a home built in Florida.
Different Construction Methods Available
In general, the 2 most common methods for building a house use standard or modular construction. Standard or stick building is the most traditional way to build a home, as everything is built on-site while using a concrete slab for the foundation. The cost of lumber often makes a big impact on the price of building a home with standard construction methods. Modular construction is another option for building a home in Florida. One of the advantages of modular construction is that it’s a quicker process and less expensive compared to stick building due to the fact that all is manufactured and built off-site and indoors within a controlled environment. However, modular construction isn’t as popular in many areas of Florida, which is why most contractors specialize in traditional construction methods.
Style Makes an Impact on Home Value
Deciding on the style of your new home is a big decision. Most people living near the coast prefer to build beach-style houses, while those living inland often prefer ranch-style homes. Other popular styles include Spanish, Victorian, and Mediterranean style homes. Each one of these styles has various pros and cons while also impacting the overall value of the house.
Other Factors Impacting the Housing Market
An array of factors can impact the cost of building a home in Florida. For example, it’s more affordable to build inland compared to building a house near the coast. You can also expect to pay much more if you are building a custom home compared to a standard house. And you must consider that some contractors are more knowledgeable and experienced, therefore, more expensive, than others.
Meeting Building Code Requirements
Staying in compliance with local building codes is essential if you are having a home built in Florida. The building codes closer to the coast are especially stringent due to the risk of damage from hurricanes and tropical storms. Meeting different requirements will often increase the price of building materials. You will also need a permit to have a home built, as permit fees can cost as little as $500, or as much as $2500 for most houses.
Financing Options for Building a Home
Loan requirements from lenders are usually more stringent if you are building a new home compared to buying an existing one. You will first need to get a construction loan to pay the contractors upfront, and many lenders require you to put at least 10% down. Once construction is finished, your construction loan can be converted into a traditional mortgage, and you will need to pay closing costs.
Are Home Construction Costs Declining?
The housing market has been especially strong in Florida in recent years, with many people choosing to move to the Sunshine State during the pandemic. The cost of lumber significantly increased in 2020 and during the years following due to supply chain issues. However, it’s expected that the cost of building a home in 2023 will not be quite as expensive because of fewer supply chain problems. Getting multiple quotes from building contractors can help you determine the value of building a brand-new house in Pensacola, FL.
Closing Thoughts
Knowing what to expect while building a home near Pensacola is essential in making the process run smoothly and to avoid any major surprises. Learning about the local housing market and the price of building materials can make it easier to estimate home construction costs. Comparing the different construction methods is also important in making the best decision to meet your needs and budget while building your dream home. Now is an excellent time to reach out to an experienced contractor if you are in the market to build a home in Florida.