The most satisfactory way to learn the probable cost of a house is to obtain estimates from one or more local builders. Approximate costs may, of course, be obtained by comparing the proposed house with one built recently in the same community, or rough estimates may be based on the size of the house and typical unit costs for the locality.
Unit costs based on prices and wages prevailing in the spring of 1934 for houses suitable for the localities were obtained for about 300 counties by the Farm Housing Survey, A summary of the figures is as follows:
CELLARS
Costs for ordinary cellars were reported for most sections as varying from 50 cents to $1 per square foot of floor space. The cost per square foot is, of course, less for a large than for a small cellar, other things being equal. Easy excavation and low-cost materials also make for low unit cost. Costs of nearly $2 per square foot were reported in some sections where the ground-water level is high and cellar walls and floor must be carefully waterproofed. In sections where cellars are not ordinarily used the cost of the foundation was reported as part of the cost of the house superstructure.
SUPERSTRUCTURES AND PORCHES
Reported costs of one-story frame superstructures, including heating, plumbing, and lighting equipment ordinarily used in the locality, ranged from $1.25 to $2.25 per square foot of floor space in the South, from $2.25 to $3.50 in the West and Southwest, from $2.50 to $4 in the North, and from $3 to $4.50 in New England. Costs in Maryland, Virginia, and West Virginia and in a narrow belt along the east coast, including Florida, were reported from $2 to $3.25, and in the timber-producing sections of the Northwest at about $2 per square foot. Costs in any locality are influenced by local factors, generally being relatively high near cities and in thickly settled sections and relatively low in places where there are local supplies of lumber or other materials.
Differences in cost between the various sections are due to differences in the kinds of houses built, as well as to differences in material costs and wages. The typical house in the North is much more compact and substantial and provided with more expensive heating equipment than the typical house in the South.
The cost per square foot of floor area of two-story frame houses was reported as being 5 to 15 percent less than that of one-story houses in the same locality.
The costs of typical masonry superstructures were generally reported at $2 to $3 per square foot of floor area in the southern third of the United States, from $3 to $4 per square foot in the central third, and more than $4 per square foot in the northern third of the country. There were many variations from these general levels, however, costs of about $2 per square foot being reported in many localities in the States bordering on or south of the Ohio River. Costs reported for counties along the Atlantic and Gulf coasts were generally higher than for those in the interior. Little difference in cost per square foot of floor area in one-story and in two-story masonry houses was reported. The higher costs reported for masonry houses as compared with frame are probably due in part to better grades of finish and equipment used in the masonry houses.
The costs per square foot of floor space of open porches were reported as being about half the costs per square foot of floor space in one-story houses of similar materials.
ESTIMATING BY UNIT COSTS
The floor areas of the cellar, the porches, and the house itself (the superstructure) are shown with each plan. They do not include unexcavated cellar space nor unfinished space in attics. The areas were figured from the working drawings (see p. 7) because in some cases the dimensions given in the plans herein are approximate only. The superstructure area of a house of more than one story is given here as the area of the first-floor plus the usable area of the second-floor. Stairways, halls, and closets are included. To estimate very roughly what a house might cost, multiply the number of square feet of cellar floor space by a cost per square foot based on the costs stated above. Do the same for the house superstructure and the porches, and add the figures together. This, with allowance for price changes since the spring of 1934, will give a rough estimate of total cost of the house. The actual cost will, of course, be affected by the materials and home equipment which the owner selects and by the skill and efficiency of the builders.
If the owner can furnish part of the material or labor, or if interior finish or equipment is omitted, the initial cash outlay may be reduced. Estimates based on local prices and wage rates are to be preferred to those based on the cost figures given above.
Little study has been given to what amounts farm people are justified in spending for their houses, but several investigations have been made of expenditures for housing by people with fixed incomes. It is generally agreed that the house ordinarily should not cost more than two and one-half times the average annual net income of the family. In the case of the farm family the value of the living furnished by the farm should be considered as part of the income. Another generally accepted rule, which perhaps is more nearly applicable to farm conditions, is that not more than 25 percent—usually not more than 20 percent—of the average annual net income of the family should be required for housing, including principal payments, interest, taxes, insurance, repairs, and miscellaneous costs.
