Recalling my early days in the system-built industry, I designed custom houses that were built for $34 per square foot. Lindals were similarly priced. And I remember the uproar when the price point hit $38 per square foot. Would the increases never end? Would the prices ever come down?
Forty something years later, I can definitively answer “no” and “no”.
Since the end of 2019, based on my averaging twelve popular Lindal designs, I can tell you Lindal prices have risen 46%. The range of increases was 42% to 48%. Prices will vary from house to house because every house has a different mix of materials and because we create personalized specifications with each client.
Since 2019, based on stats in the annual National Construction Estimator on-site construction costs have risen between 52% and 63%, depending on the market.
Today’s turn-key building costs in Seattle range from $500 to $600 per square foot not including site prep (which can run from $50,000 to $150.000 per lot. On Long Island (NY) the range is $625 to $750 per square foot.
Let me answer a few questions that I am sure are swirling around in your head:
Do these costs include design, drafting and engineering costs?
Yes. Lindal’s prices include the cost of preparing the permit plans, the structural engineering and stamping of plans . The cost of Lindal’s conceptual designs covered by the Design Service Agreement for one-of-a kind designs – generally less than 1.5% of the total cost- is not included) Civil engineers, geotechnical engineers, wetland specialists, arborists, that are required in a few projects are not.
When you read the cost per square foot in a publication or on a builder’s or architect’s website, these figures generally do not include ant design or engineering cost, which often add 12% to 18% of the entire house cost (15% of $650/SF= $98/SF. Yikes!).
How does the Lindal package fit into the builder’s cost?
Generally speaking, it does not. We sell directly to our clients, and many builder see the value in our planning and delivering all the materials that are needed for each phase of the framing and finish work, eliminating a great deal of time sourcing and coordinating deliveries from different sources.. Some builders do add a small percentage to their markups, but nowhere near the 15-20% that would be added for a full markup on the full package if the builder purchased the Lindal kit.
Would it be less costly to just buy a modular(volumetric) design and have it dropped off on-site?
I recently compared Lindal’s typical cost per square foot with modular products of comparable quality and found the modular prices to be higher. That is because, I am assuming, that operating a less than 100% capacity production line in a factory with significant operating costs, real estate taxes, and union labor is expensive. Also, the transportation costs of empty boxes with “Full Load” cars front and back is tremendous. It can cost as much as $30,000 to transport a box cross-country, and a house can consist of three to six “boxes.”
The cost of adding basements, decks, porches, pergolas and overhangs is not included in the base cost, since these are items built on site after the boxes are delivered, small projects for local tradespeople, who are usually busy with full-builds. One project recently featured in dwell.com was not completed for five months after delivery and set up (1-2 months) until these important finishing touches were completed.
Finally, modular producers can only offer a limited number of finishes (cabinets, countertops, flooring ,plumbing and light fixtures). Recently one producer’s promotional material bragged that it made the selection process easier. Easier perhaps, and less satisfying. The enormous variety of finishes available today at all price levels is hardly an indication that consumers want fewer choices. At Lindal we assign a value to each finish based on discussion with you, the importance of the category to you and your budget. This might result in a $15,000 appliance allowance for a client who spends very little time in the kitchen to $50,000 for a couple of gourmet cooks who prepare elaborate meals and entertain in their kitchen.
