Average cost to build an apartment complex
Apartment complexes are a very lucrative, high-yielding business opportunity. And because they’re fairly simple to build (especially if you hire a contractor) it should be considerably easier to get started with this business idea than say, a restaurant business. On top of that, apartment complexes don’t require a huge front-end investment—you can find properties pretty cheap. Of course, there are still challenges associated with starting your own multifamily real estate investment company—meaning there’s risk involved and this business isn’t really for everyone. That said, if you’ve got the capital and are willing to take the leap of faith then give it a shot—it may be right up your alley!
When you hear the word “apartment”, what are some words that can come to mind? Rent , views , community . Whether you’re looking for an apartment yourself, or building a complex for someone else, there are a lot of different factors you have to take into consideration.
Average cost to build an apartment complex
The cost to build an apartment complex depends on several factors. The size, number of units and location of the project will all affect the cost. In addition, whether it is a new construction or a rehabilitation project will also have an impact on the overall cost of construction. The average cost to build an apartment complex ranges from $15 million to $30 million.
The most common types of apartment complexes are garden style, midrise and highrise. For example, a garden style apartment complex would consist of one-story buildings with four to eight units per building. A midrise apartment complex would consist of two-stories buildings with eight to 16 units per building. A highrise apartment complex would consist of three-stories buildings with 30 to 50 units per building.
Costs for these types differ based on location and building materials used. In general, a garden style apartment complex costs $100 per square foot while a midrise or highrise can cost anywhere from $125-$200 per square foot depending on location and amenities offered such as swimming pools or fitness centers.
The size of the project will also have an impact on overall costs. For example, if you are building one unit versus 100 units then your costs will be lower since there is less labor involved in
The cost to build an apartment complex varies by region, size and design. A small, one-story apartment building with a few units may cost $500,000 to $1 million to build; the same type of building in a major city might cost $2 million or more.
Costs for a small apartment building are about the same as those for a single-family home in most areas of the country. The average cost of constructing a single-family home in 2018 was $345,200, according to the U.S. Census Bureau’s American Community Survey (ACS). The ACS also reported that it took 2.6 months to complete construction on new homes.
Apartment buildings can be constructed from wood or steel framing, which are less expensive than concrete and masonry structures used for larger buildings like office towers or hotels. However, some materials common on large buildings — including elevators, sprinkler systems and fire alarms — are typically required on all residential construction projects regardless of size or location
The average cost to build an apartment complex is $50.5 million, with high-end projects running as much as $2 billion, according to the U.S. Census Bureau in 2012.
The average cost per unit was $77,000, with the median price at $99,000.
In some states, the average cost per unit can be significantly lower or higher than the national average. In California, for example, the average cost per unit was $134,000 and the median price was $150,000. In Nevada, however, it was only $64,000 per unit and $74,000 for the median price.
Sample Costs for Apartment Complexes
Building an apartment complex requires a significant investment of time and money on behalf of developers before they can begin construction on site. The following are some sample costs associated with building an apartment complex:
Land acquisition: Land acquisition costs vary depending on location and size of property purchased by developer; however, land acquisition costs typically range from $5 million to more than $100 million for larger properties in urban areas
Aptly named The Foundry, this high-end apartment complex in Pittsburgh is a great example of how to build a luxury apartment building.
The Foundry is part of a larger redevelopment project that includes a hotel and office space, as well.
How much does it cost to build an apartment complex? It depends on the size of your building and the amenities you want to include.
The average cost to build an apartment complex is $100-$150 per square foot. This would include all costs associated with building out the space including drywall, paint, floors, lighting fixtures and appliances.
If you want to add some luxury features like granite countertops or stainless steel appliances then your cost could be higher. If you want extra storage space or closet space, then your cost will also increase.
It’s no secret that the cost to build an apartment complex is high. But just how much does it cost to build a single-family home?
The average price tag on a new home in the U.S. has risen above $300,000 for the first time ever, according to data from the National Association of Home Builders and Wells Fargo.
For many years, the average new home price hovered around $250,000 — until last year when it jumped to $260,500 and then soared past $300,000 this year, according to NAHB/Wells Fargo data. The jump was fueled by rising lumber prices and labor shortages caused by Hurricane Florence, which hit North Carolina in September 2018 and shut down construction sites across the state for months.
While home buyers today might find themselves with higher mortgage payments than they had planned for, there are ways for them to save money on their budget for their new home.