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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: valueminded who wrote (52984)7/2/2006 4:33:11 PM
From: Elroy Jetson  Read Replies (4) of 116555
 
Pardee can build homes for something like $45.43 per square foot, which is dramatically less than small builders charge to build a home. Top line models cost $58.70 per square foot.

This means a 2,000 square foot home in San Diego costs $117.4k and sells for as much as $1.2 million. The balance of the sales price is 50% land and development cost, and 50% profit.

Message 22475952
Message 22476343

Californian's are accustomed to prices exceeding $150 per square foot as normal, while some have been quoted prices as high as $300. This leads them to imagine that a 2,000 square foot home costs something like $600k.

Building your home for $67 per square foot is a very good showing for a one-off construction, depending on the construction quality.

I'm not clear where you got your $35 per square foot figure from. Perhaps you simply made a math error.
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