Generally, the cost of developing an apartment complex is measured per square foot, The process of building an apartment complex is often overwhelming, complicated, and draining since there are many steps involved, many factors to consider, and many contractors to hire. Nevertheless, once you have figured everything out and consulted with the right people, the hassle of deciding how to best carry on the project is greatly reduced. In this piece, we are covering how to determine the cost of developing your apartment complex.
Factors that Affect Building an Apartment Complex
All apartments will not cost the same depending on several factors, especially their size. Here are some of the factors affecting the cost of building an apartment.
- Cost of Materials and Labor
Materials and labor, often referred to as “hard costs,” are probably the two top costly inputs in developing an apartment. The type and number of materials will be determined by the size and complexity of the apartment. Labor costs, on the other hand, are determined by the duration or the size of the project. The costs of materials, labor, and contractor fees will make up a majority of your budget.
- Affordable Housing vs Luxury Apartments
Besides the cost of inputs, the type of apartment you are planning to develop will determine the cost of development. Luxury apartments are likely to cost more than normal or affordable apartments especially due to the amenities needed to qualify to be of luxurious class. We recommend that you determine the type of apartment you need first before construction.
- Location and Land Costs
The location of the apartment will to a larger extent affect the cost of acquiring land to develop. In addition, different locations may have different costs of construction materials. We recommend comparing the different costs for different locations.
- Expected Occupancy Capacity
This is the size of the apartment. The larger the apartment the more you will have to spend on developing it. We recommend consulting with a professional especially a quantitative surveyor to get a good estimation.
Who to Consult in Building Apartments
A wide variety of professionals are involved in building apartments. These could include lawyers, architects, contractors, engineers, plumbers, and electricians. You need to reach out to them to determine the required cost.
Most Common Pricing
In many areas, the cost of developing an apartment per square foot is $125 for most contractors translating to an average of $64,575 to $86,100 per unit. This pricing structure assumes that carpenters, masons, and excavators charge an average of $70 per hour, electricians between $65 to $85 per hour, painters between $20 and $35 per hour, and plumbers between $45 and $65 per hour.
Conclusion
Developing an apartment is not an easy task given the various considerations. However, we have provided you with hints and valuable information to help you have a starting point.
