It's time for this weeks reader question! This weeks reader question is what is the average cost to build a home in Arizona (2014)? If you have a question for Wednesday's reader question series then contact me!
This question is well-timed. Since we are thinking of building a home this question is going to be relevant for us soon! Unfortunately, it is hard to answer because it depends on what you want.
Arizona Land Costs
Land costs are going to vary depending on where you are at and where you want your home. Land prices right now (in 2014) in the Tucson area seem to be:
- rural lots that do not have water and are far from utilities are going for around $5K per acre.
- Rural lots that have utilities close by seem to be going for around $10-$15K per acre.
- Rural lots that have utilities close by and water access are going for $25-$40K per acre.
- Lots in highly desirable locations close to utilities are going for $40-$70K per acre.
This is for custom build homes. If you want a subdivision lot then most are part of an HOA and contracted builder. Water access is expensive in Arizona. If you have to build a well you might have to dig pretty deep, which is costly. Lots far from utility lines can also be expensive when you have to get electric and/or gas to the property.
Arizona Home Costs
Home costs are hard to nail down because it really does depend on what you want. I have been quoted:
- low end companies that will build for $80-$110 per square foot ($160-$220K for a 2000 square foot home)
- mid range companies that will build for $125-$185 per square foot ($250-$370K for a 2000 square foot home)
- high range do anything you want companies that will build for $275-$325 per square foot ($550-$650K for a 2000 square foot home)
Arizona Compared to Different Areas of the United States
If you are coming from a different state then this will give you an idea of the price difference between your area and Arizona.
- If you live in the south, a custom home in Arizona will cost you 39% more (your $250K home will cost $348K here)
- If you live in the midwest, a custom home in Arizona will cost you 29% more (your $250K home will cost $323K here)
- If you live in the northwest the same custom home in Arizona will cost you 4% more (your $250K home will cost $260K here)
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