Last Updated on April 18, 2024 by admin
Contents
- 1 Comprehensive Analysis of Building Costs for Multi-Family Housing in Texas
- 2 Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 2 to 3 Units – Texas, USA
- 3 Building Cost Breakdown for Multi-Family Apartment Complex, Block of 2 to 3 Units – Texas:
- 3.1 Excavation and Foundations: (9% of total cost)
- 3.2 Substructure (Floor Construction): (12% of total cost)
- 3.3 Wall Framing and External Finish: (12% of total cost)
- 3.4 Roof Construction: (10% of total cost)
- 3.5 Floor Finishes: (5% of total cost)
- 3.6 Internal Walls and Finishes: (8% of total cost)
- 3.7 Built-in Bathtub, Shower: (4% of total cost)
- 3.8 Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- 3.9 Plumbing: (12% of total cost)
- 3.10 Electrical Installation: (10% of total cost)
- 3.11 Special Appliances and Installations: (cost not specified)
- 4 Building Costs Per Square Foot for Multi-Family Apartment Complex 2 to 3 Units – Texas, USA
- 5 How Much Does it Cost to Build an 887 sqft Apartment in Texas, USA? – Multi Family Housing
- 6 Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 4 to 9 Units – Texas, USA
- 7 Building Cost Breakdown for Multi-Family Apartment Complex, Block of 4 to 9 Units – Texas:
- 7.1 Excavation and Foundations: (9% of total cost)
- 7.2 Substructure (Floor Construction): (12% of total cost)
- 7.3 Wall Framing and External Finish: (12% of total cost)
- 7.4 Roof Construction: (10% of total cost)
- 7.5 Floor Finishes: (5% of total cost)
- 7.6 Internal Walls and Finishes: (8% of total cost)
- 7.7 Ceiling:
- 7.8 Built-in Bathtub, Shower: (4% of total cost)
- 7.9 Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- 7.10 Plumbing: (12% of total cost)
- 7.11 Electrical Installation: (10% of total cost)
- 7.12 Special Appliances and Installations:
- 8 Building Costs Per Square Foot for Multi-Family Apartment Complex 4 to 9 Units – Texas, USA
- 9 How Much Does it Cost to Build an 887 sqft Apartment in Texas, USA? – Multi Family Housing
- 10 Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 10 or more Units – Texas, USA
- 11 Building Cost Breakdown for Multi-Family Apartment Complex, Block of 10 or more Units – Texas, USA:
- 11.1 Excavation and Foundations: (9% of total cost)
- 11.2 Substructure (Floor Construction): (12% of total cost)
- 11.3 Wall Framing and External Finish: (12% of total cost)
- 11.4 Roof Construction: (10% of total cost)
- 11.5 Floor Finishes: (5% of total cost)
- 11.6 Internal Walls and Finishes: (8% of total cost)
- 11.7 Ceiling:
- 11.8 Built-in Bathtub, Shower: (4% of total cost)
- 11.9 Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- 11.10 Plumbing: (12% of total cost)
- 11.11 Electrical Installation: (10% of total cost)
- 11.12 Special Appliances and Installations:
- 12 Building Costs Per Square Foot for Multi-Family Apartment Complex 10 or more Units – Texas, USA
- 13 How Much Does it Cost to Build an 887 sqft Apartment in Texas? – Multi Family Housing
- 14 Financial Feasibility of “Best” Class Multi-Family Housing Investments in Texas
- 14.1 Estimating Project Funding for a Premier Living Experience
- 14.2 Internal Rate of Return and Cash on Cash Return: Key Investment Metrics
- 14.3 Mortgage Considerations for Multi-Family Developments
- 14.4 Rental Yield: Measuring Income-Generating Potential
- 14.5 Conclusion: The Attractiveness of Texas Multi-Family Housing Investments
Comprehensive Analysis of Building Costs for Multi-Family Housing in Texas
500 Padre Blvd 508 South Padre Island Texas – Condo 2 Beds and 2 Baths – 1039 sqft Apartment for Sale – Price $450,000
The real estate development landscape in Texas is witnessing a dynamic shift, especially in the sector of multi-family housing. As urban areas expand and the demand for residential units increases, developers and investors are keenly interested in understanding the financial implications of building apartment complexes across various scales. This detailed analysis delves into the intricate cost structures associated with constructing multi-family apartment complexes, ranging from smaller blocks of 2-3 units to larger developments with 10 or more units.
The construction cost per square foot varies significantly based on the size of the development and the quality of materials and finishes chosen. For instance, the cost categories include excavation and foundations, substructure, wall framing and external finish, roof construction, floor finishes, internal walls and finishes, built-in features such as bathtubs, showers, kitchen cupboards, countertops, bars, plumbing, electrical installation, and special appliances and installations. Each of these categories contributes a percentage to the total building cost, reflecting the complexity and scope of the building process.
In Texas, the range for building a standard 887 sq ft apartment varies dramatically. For a high-quality (“Exceptional”) finish, the cost can stretch from approximately $70,693 to over $235,233 per unit depending on the complexity and size of the apartment block. This variance underscores the significant impact that both scale and specification standards have on the overall investment required. The cost differences are not just evident in the luxury segment; even the more economically priced (“Minimum”) units show a wide range of potential costs, illustrating the diverse market that developers must navigate.
Moreover, the scalability of such projects is crucial. As the number of units in a complex increases, the per-unit cost efficiency can improve, but this also comes with increased risk and higher initial capital requirements. For example, building costs for a 200-unit apartment complex can range from about $14 million to nearly $42 million, highlighting the substantial financial stakes involved.
The implications of these cost factors are far-reaching. Developers must make informed decisions about location, design, materials, and target markets. Additionally, the financial planning for such projects must account for the variability in costs associated with different construction standards and scales. This analysis not only aids in budgeting but also in strategic planning, risk assessment, and ultimately in pricing strategies for the rental or sale of these units once completed.
In summary, the construction of multi-family housing in Texas represents a significant investment with a complex array of cost components. Understanding these costs in detail is essential for developers, investors, and financial institutions involved in the booming real estate market of Texas. This comprehensive breakdown serves as a guide to navigate the intricacies of building costs and to strategize effectively for future development projects.
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 2 to 3 Units – Texas, USA
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $90.17 | $265.05 |
| Best | $86.22 | $232.78 |
| Good | $85.35 | $178.62 |
| Hi Average | $81.18 | $149.49 |
| Lo Average | $81.18 | $127.51 |
| Minimum | $81.18 | $108.64 |
Top of Form
Building Cost Breakdown for Multi-Family Apartment Complex, Block of 2 to 3 Units – Texas:
Excavation and Foundations: (9% of total cost)
- Exceptional: $8.12 to $23.85 per sqft
- Best: $7.76 to $20.93 per sqft
- Good: $7.68 to $16.08 per sqft
- Hi Average: $7.31 to $13.49 per sqft
- Lo Average: $7.31 to $11.48 per sqft
- Minimum: $7.31 to $9.78 per sqft
Substructure (Floor Construction): (12% of total cost)
- Exceptional: $10.82 to $31.81 per sqft
- Best: $10.35 to $27.93 per sqft
- Good: $10.24 to $21.43 per sqft
- Hi Average: $9.74 to $17.94 per sqft
- Lo Average: $9.74 to $15.30 per sqft
- Minimum: $9.74 to $13.04 per sqft
Wall Framing and External Finish: (12% of total cost)
- Exceptional: $10.82 to $31.81 per sqft
- Best: $10.35 to $27.93 per sqft
- Good: $10.24 to $21.43 per sqft
- Hi Average: $9.74 to $17.94 per sqft
- Lo Average: $9.74 to $15.30 per sqft
- Minimum: $9.74 to $13.04 per sqft
Roof Construction: (10% of total cost)
- Exceptional: $9.02 to $26.51 per sqft
- Best: $8.62 to $23.28 per sqft
- Good: $8.54 to $17.86 per sqft
- Hi Average: $8.12 to $14.95 per sqft
- Lo Average: $8.12 to $12.75 per sqft
- Minimum: $8.12 to $10.86 per sqft
Floor Finishes: (5% of total cost)
- Exceptional: $4.51 to $13.25 per sqft
- Best: $4.31 to $11.64 per sqft
- Good: $4.27 to $8.93 per sqft
- Hi Average: $4.06 to $7.47 per sqft
- Lo Average: $4.06 to $6.38 per sqft
- Minimum: $4.06 to $5.43 per sqft
Internal Walls and Finishes: (8% of total cost)
- Exceptional: $7.21 to $21.20 per sqft
- Best: $6.90 to $18.62 per sqft
- Good: $6.83 to $14.29 per sqft
- Hi Average: $6.49 to $11.96 per sqft
- Lo Average: $6.49 to $10.20 per sqft
- Minimum: $6.49 to $8.69 per sqft
Built-in Bathtub, Shower: (4% of total cost)
- Exceptional: $3.61 to $10.60 per sqft
- Best: $3.45 to $9.31 per sqft
- Good: $3.41 to $7.15 per sqft
- Hi Average: $3.25 to $5.98 per sqft
- Lo Average: $3.25 to $5.10 per sqft
- Minimum: $3.25 to $4.35 per sqft
Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- Exceptional: $7.21 to $21.20 per sqft
- Best: $6.90 to $18.62 per sqft
- Good: $6.83 to $14.29 per sqft
- Hi Average: $6.49 to $11.96 per sqft
- Lo Average: $6.49 to $10.20 per sqft
- Minimum: $6.49 to $8.69 per sqft
Plumbing: (12% of total cost)
- Exceptional: $10.82 to $31.81 per sqft
- Best: $10.35 to $27.93 per sqft
- Good: $10.24 to $21.43 per sqft
- Hi Average: $9.74 to $17.94 per sqft
- Lo Average: $9.74 to $15.30 per sqft
- Minimum: $9.74 to $13.04 per sqft
Electrical Installation: (10% of total cost)
- Exceptional: $9.02 to $26.51 per sqft
- Best: $8.62 to $23.28 per sqft
- Good: $8.54 to $17.86 per sqft
- Hi Average: $8.12 to $14.95 per sqft
- Lo Average: $8.12 to $12.75 per sqft
- Minimum: $8.12 to $10.86 per sqft
Special Appliances and Installations: (cost not specified)
- Typically covers any additional equipment or features that are not standard. Costs can vary greatly based on specific installations and appliances chosen.
Top of Form
Building Costs Per Square Foot for Multi-Family Apartment Complex 2 to 3 Units – Texas, USA
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $90.17 | $265.05 |
| Best | $86.22 | $232.78 |
| Good | $85.35 | $178.62 |
| Hi Average | $81.18 | $149.49 |
| Lo Average | $81.18 | $127.51 |
| Minimum | $81.18 | $108.64 |
This table represents the minimum and maximum range for all rows in USD per sqft for multi-family apartment complexes.
……………….
How Much Does it Cost to Build an 887 sqft Apartment in Texas, USA? – Multi Family Housing
Cost Per Unit (USD$ per Unit)
- Exceptional: $79,881.29 – $235,233.35
- Best: $76,512.54 – $206,536.06
- Good: $75,520.45 – $158,316.94
- Hi Average: $71,947.66 – $132,613.63
- Lo Average: $71,947.66 – $113,068.37
- Minimum: $71,947.66 – $96,358.68
Total Cost of Building
-
2 Unit Apartment Complex
- Exceptional: $159,762.58 – $470,466.70
- Best: $153,025.08 – $413,072.12
- Good: $151,040.90 – $316,633.88
- Hi Average: $143,895.32 – $265,227.26
- Lo Average: $143,895.32 – $226,136.74
- Minimum: $143,895.32 – $192,717.36
-
3 Unit Apartment Complex
- Exceptional: $239,643.87 – $705,700.05
- Best: $229,537.62 – $619,608.18
- Good: $226,561.35 – $474,950.82
- Hi Average: $215,843.98 – $397,840.89
- Lo Average: $215,843.98 – $339,205.11
- Minimum: $215,843.98 – $289,076.04
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 4 to 9 Units – Texas, USA
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $77.19 | $249.51 |
| Best | $77.19 | $219.30 |
| Good | $78.09 | $168.21 |
| Hi Average | $78.09 | $140.78 |
| Lo Average | $77.19 | $119.03 |
| Minimum | $77.19 | $110.81 |
Building Cost Breakdown for Multi-Family Apartment Complex, Block of 4 to 9 Units – Texas:
Excavation and Foundations: (9% of total cost)
- Exceptional: $6.98 to $22.46 per sqft
- Best: $6.98 to $19.74 per sqft
- Good: $7.03 to $15.15 per sqft
- Hi Average: $7.03 to $12.70 per sqft
- Lo Average: $6.98 to $10.69 per sqft
- Minimum: $6.98 to $9.97 per sqft
Substructure (Floor Construction): (12% of total cost)
- Exceptional: $9.26 to $29.94 per sqft
- Best: $9.26 to $26.32 per sqft
- Good: $9.29 to $20.19 per sqft
- Hi Average: $9.29 to $17.62 per sqft
- Lo Average: $9.26 to $14.28 per sqft
- Minimum: $9.26 to $13.30 per sqft
Wall Framing and External Finish: (12% of total cost)
- Exceptional: $9.26 to $29.94 per sqft
- Best: $9.26 to $26.32 per sqft
- Good: $9.29 to $20.19 per sqft
- Hi Average: $9.29 to $17.62 per sqft
- Lo Average: $9.26 to $14.28 per sqft
- Minimum: $9.26 to $13.30 per sqft
Roof Construction: (10% of total cost)
- Exceptional: $7.72 to $24.95 per sqft
- Best: $7.72 to $21.93 per sqft
- Good: $7.81 to $16.82 per sqft
- Hi Average: $7.81 to $14.08 per sqft
- Lo Average: $7.72 to $12.56 per sqft
- Minimum: $7.72 to $11.08 per sqft
Floor Finishes: (5% of total cost)
- Exceptional: $3.86 to $12.48 per sqft
- Best: $3.86 to $10.97 per sqft
- Good: $3.90 to $8.41 per sqft
- Hi Average: $3.90 to $7.04 per sqft
- Lo Average: $3.86 to $6.34 per sqft
- Minimum: $3.86 to $5.54 per sqft
Internal Walls and Finishes: (8% of total cost)
- Exceptional: $6.18 to $19.92 per sqft
- Best: $6.18 to $17.54 per sqft
- Good: $6.22 to $13.45 per sqft
- Hi Average: $6.22 to $11.16 per sqft
- Lo Average: $6.18 to $10.07 per sqft
- Minimum: $6.18 to $8.87 per sqft
Ceiling:
- Not explicitly mentioned in the original list, but typically includes materials and construction methods for the overhead interior surface.
Built-in Bathtub, Shower: (4% of total cost)
- Exceptional: $3.09 to $9.98 per sqft
- Best: $3.09 to $8.77 per sqft
- Good: $3.12 to $6.73 per sqft
- Hi Average: $3.12 to $5.60 per sqft
- Lo Average: $3.09 to $5.03 per sqft
- Minimum: $3.09 to $4.43 per sqft
Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- Exceptional: $6.18 to $19.92 per sqft
- Best: $6.18 to $17.54 per sqft
- Good: $6.22 to $13.45 per sqft
- Hi Average: $6.22 to $11.16 per sqft
- Lo Average: $6.18 to $10.07 per sqft
- Minimum: $6.18 to $8.87 per sqft
Plumbing: (12% of total cost)
- Exceptional: $9.26 to $29.94 per sqft
- Best: $9.26 to $26.32 per sqft
- Good: $9.29 to $20.19 per sqft
- Hi Average: $9.29 to $17.62 per sqft
- Lo Average: $9.26 to $14.28 per sqft
- Minimum: $9.26 to $13.30 per sqft
Electrical Installation: (10% of total cost)
- Exceptional: $7.72 to $24.95 per sqft
- Best: $7.72 to $21.93 per sqft
- Good: $7.81 to $16.82 per sqft
- Hi Average: $7.81 to $14.08 per sqft
- Lo Average: $7.72 to $12.56 per sqft
- Minimum: $7.72 to $11.08 per sqft
Special Appliances and Installations:
- Not explicitly mentioned in the original list, but this would typically cover any additional equipment or features that are not standard.
Top of Form
Building Costs Per Square Foot for Multi-Family Apartment Complex 4 to 9 Units – Texas, USA
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $77.19 | $249.51 |
| Best | $77.19 | $219.30 |
| Good | $78.09 | $168.21 |
| Hi Average | $78.09 | $140.78 |
| Lo Average | $77.19 | $119.03 |
| Minimum | $77.19 | $110.81 |
This table represents the minimum and maximum range for all rows in USD per sqft for multi-family apartment complexes.
……………….
How Much Does it Cost to Build an 887 sqft Apartment in Texas, USA? – Multi Family Housing
Cost Per Unit (USD$ per Unit)
- Exceptional: $68,531.53 – $221,551.37
- Best: $68,531.53 – $194,521.10
- Good: $69,207.93 – $149,324.47
- Hi Average: $69,207.93 – $124,791.86
- Lo Average: $68,531.53 – $105,425.61
- Minimum: $68,531.53 – $98,280.41
Total Cost of Building
-
4 Unit Apartment Complex
- Exceptional: $274,126.12 – $886,205.48
- Best: $274,126.12 – $778,084.40
- Good: $276,831.72 – $597,297.88
- Hi Average: $276,831.72 – $499,167.44
- Lo Average: $274,126.12 – $421,702.44
- Minimum: $274,126.12 – $393,121.64
-
5 Unit Apartment Complex
- Exceptional: $342,657.65 – $1,107,756.85
- Best: $342,657.65 – $972,605.50
- Good: $346,039.65 – $746,622.35
- Hi Average: $346,039.65 – $623,489.30
- Lo Average: $342,657.65 – $527,128.05
- Minimum: $342,657.65 – $491,401.05
-
6 Unit Apartment Complex
- Exceptional: $411,189.18 – $1,329,308.22
- Best: $411,189.18 – $1,167,126.60
- Good: $415,247.58 – $895,947.82
- Hi Average: $415,247.58 – $747,811.16
- Lo Average: $411,189.18 – $632,553.66
- Minimum: $411,189.18 – $589,680.46
-
7 Unit Apartment Complex
- Exceptional: $479,720.71 – $1,550,859.59
- Best: $479,720.71 – $1,361,647.70
- Good: $484,455.51 – $1,045,273.29
- Hi Average: $484,455.51 – $872,132.02
- Lo Average: $479,720.71 – $737,979.27
- Minimum: $479,720.71 – $688,959.87
-
8 Unit Apartment Complex
- Exceptional: $548,252.24 – $1,772,410.96
- Best: $548,252.24 – $1,556,169.80
- Good: $553,663.44 – $1,194,598.76
- Hi Average: $553,663.44 – $996,452.88
- Lo Average: $548,252.24 – $843,404.88
- Minimum: $548,252.24 – $788,239.28
-
9 Unit Apartment Complex
- Exceptional: $616,783.77 – $1,994,962.33
- Best: $616,783.77 – $1,750,691.90
- Good: $623,871.35 – $1,343,924.23
- Hi Average: $623,871.35 – $1,120,773.74
- Lo Average: $616,783.77 – $948,830.49
- Minimum: $616,783.77 – $887,518.69
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
Table of Building Costs Per Square Foot for Multi-Family Apartment Complex Block of 10 or more Units – Texas, USA
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $79.90 | $235.90 |
| Best | $79.90 | $206.11 |
| Good | $80.18 | $167.99 |
| Hi Average | $79.90 | $131.91 |
| Lo Average | $79.90 | $112.36 |
| Minimum | $79.90 | $103.78 |
Top of Form
Building Cost Breakdown for Multi-Family Apartment Complex, Block of 10 or more Units – Texas, USA:
Excavation and Foundations: (9% of total cost)
- Exceptional: $7.19 to $21.25 per sqft
- Best: $7.19 to $18.55 per sqft
- Good: $7.22 to $15.12 per sqft
- Hi Average: $7.19 to $11.87 per sqft
- Lo Average: $7.19 to $9.81 per sqft
- Minimum: $7.19 to $9.34 per sqft
Substructure (Floor Construction): (12% of total cost)
- Exceptional: $9.59 to $28.31 per sqft
- Best: $9.59 to $24.73 per sqft
- Good: $9.62 to $20.16 per sqft
- Hi Average: $9.59 to $15.83 per sqft
- Lo Average: $9.59 to $13.48 per sqft
- Minimum: $9.59 to $12.45 per sqft
Wall Framing and External Finish: (12% of total cost)
- Exceptional: $9.59 to $28.31 per sqft
- Best: $9.59 to $24.73 per sqft
- Good: $9.62 to $20.16 per sqft
- Hi Average: $9.59 to $15.83 per sqft
- Lo Average: $9.59 to $13.48 per sqft
- Minimum: $9.59 to $12.45 per sqft
Roof Construction: (10% of total cost)
- Exceptional: $7.99 to $23.59 per sqft
- Best: $7.99 to $20.61 per sqft
- Good: $8.02 to $16.80 per sqft
- Hi Average: $7.99 to $13.19 per sqft
- Lo Average: $7.99 to $11.24 per sqft
- Minimum: $7.99 to $10.38 per sqft
Floor Finishes: (5% of total cost)
- Exceptional: $3.99 to $11.80 per sqft
- Best: $3.99 to $10.31 per sqft
- Good: $4.01 to $8.40 per sqft
- Hi Average: $3.99 to $6.60 per sqft
- Lo Average: $3.99 to $5.62 per sqft
- Minimum: $3.99 to $5.19 per sqft
Internal Walls and Finishes: (8% of total cost)
- Exceptional: $6.39 to $18.87 per sqft
- Best: $6.39 to $16.49 per sqft
- Good: $6.41 to $13.44 per sqft
- Hi Average: $6.39 to $10.55 per sqft
- Lo Average: $6.39 to $8.59 per sqft
- Minimum: $6.39 to $8.31 per sqft
Ceiling:
- Not explicitly mentioned in the original list, but typically includes materials and construction methods for the overhead interior surface.
Built-in Bathtub, Shower: (4% of total cost)
- Exceptional: $3.20 to $9.44 per sqft
- Best: $3.20 to $8.24 per sqft
- Good: $3.21 to $6.72 per sqft
- Hi Average: $3.20 to $5.27 per sqft
- Lo Average: $3.20 to $4.54 per sqft
- Minimum: $3.20 to $4.15 per sqft
Built-in Kitchen Cupboards, Countertops and Bars: (8% of total cost)
- Exceptional: $6.39 to $18.87 per sqft
- Best: $6.39 to $16.49 per sqft
- Good: $6.41 to $13.44 per sqft
- Hi Average: $6.39 to $10.55 per sqft
- Lo Average: $6.39 to $8.59 per sqft
- Minimum: $6.39 to $8.31 per sqft
Plumbing: (12% of total cost)
- Exceptional: $9.59 to $28.31 per sqft
- Best: $9.59 to $24.73 per sqft
- Good: $9.62 to $20.16 per sqft
- Hi Average: $9.59 to $15.83 per sqft
- Lo Average: $9.59 to $13.48 per sqft
- Minimum: $9.59 to $12.45 per sqft
Electrical Installation: (10% of total cost)
- Exceptional: $7.99 to $23.59 per sqft
- Best: $7.99 to $20.61 per sqft
- Good: $8.02 to $16.80 per sqft
- Hi Average: $7.99 to $13.19 per sqft
- Lo Average: $7.99 to $11.24 per sqft
- Minimum: $7.99 to $10.38 per sqft
Special Appliances and Installations:
- Not explicitly mentioned in the original list, but this would typically cover any additional equipment or features that are not standard.
Building Costs Per Square Foot for Multi-Family Apartment Complex 10 or more Units – Texas, USA
Here’s the table showing the minimum and maximum ranges for the square footage range from 400 to 2200 sq ft:
| Quality Class | Minimum Range (USD$/sqft) | Maximum Range (USD$/sqft) |
| Exceptional | $79.90 | $235.90 |
| Best | $79.90 | $206.11 |
| Good | $80.18 | $167.99 |
| Hi Average | $79.90 | $131.91 |
| Lo Average | $79.90 | $112.36 |
| Minimum | $79.90 | $103.78 |
This table represents the minimum and maximum range for all rows in USD per sqft for multi-family apartment complexes with 10 or more units in the USA.
……………….
How Much Does it Cost to Build an 887 sqft Apartment in Texas? – Multi Family Housing
Cost Per Unit (USD$ per Unit)
- Exceptional: $70,693.30 – $209,288.30
- Best: $70,693.30 – $182,975.57
- Good: $71,020.06 – $148,942.13
- Hi Average: $70,693.30 – $116,872.57
- Lo Average: $70,693.30 – $99,843.32
- Minimum: $70,693.30 – $92,117.06
Total Cost of Building
-
10 Unit Apartment Complex
- Exceptional: $706,933.00 – $2,092,883.00
- Best: $706,933.00 – $1,829,755.70
- Good: $710,200.60 – $1,489,421.30
- Hi Average: $706,933.00 – $1,168,725.70
- Lo Average: $706,933.00 – $998,433.20
- Minimum: $706,933.00 – $921,170.60
-
12 Unit Apartment Complex
- Exceptional: $848,319.60 – $2,511,459.60
- Best: $848,319.60 – $2,195,706.40
- Good: $852,240.72 – $1,787,305.56
- Hi Average: $848,319.60 – $1,402,670.84
- Lo Average: $848,319.60 – $1,198,119.52
- Minimum: $848,319.60 – $1,105,404.72
-
20 Unit Apartment Complex
- Exceptional: $1,413,866.00 – $4,185,660.00
- Best: $1,413,866.00 – $3,659,511.40
- Good: $1,420,401.20 – $2,978,842.60
- Hi Average: $1,413,866.00 – $2,337,451.40
- Lo Average: $1,413,866.00 – $1,996,866.40
- Minimum: $1,413,866.00 – $1,644,341.20
-
50 Unit Apartment Complex
- Exceptional: $3,534,665.00 – $10,464,300.00
- Best: $3,534,665.00 – $9,148,785.50
- Good: $3,550,030.00 – $7,447,106.50
- Hi Average: $3,534,665.00 – $5,843,627.50
- Lo Average: $3,534,665.00 – $4,992,165.00
- Minimum: $3,534,665.00 – $4,312,358.50
-
100 Unit Apartment Complex
- Exceptional: $7,069,330.00 – $20,928,830.00
- Best: $7,069,330.00 – $18,297,557.00
- Good: $7,102,006.00 – $14,894,213.00
- Hi Average: $7,069,330.00 – $11,687,257.00
- Lo Average: $7,069,330.00 – $9,984,332.00
- Minimum: $7,069,330.00 – $9,211,706.00
-
200 Unit Apartment Complex
- Exceptional: $14,138,660.00 – $41,857,260.00
- Best: $14,138,660.00 – $36,595,114.00
- Good: $14,204,012.00 – $29,788,426.00
- Hi Average: $14,138,660.00 – $23,374,514.00
- Lo Average: $14,138,660.00 – $19,968,664.00
- Minimum: $14,138,660.00 – $18,428,212.00
Financial Feasibility of “Best” Class Multi-Family Housing Investments in Texas
Investing in multi-family housing in Texas has become an increasingly attractive proposition for real estate developers and investors alike. With the state’s booming economy and growing population, the demand for quality rental housing is on the rise. In this article, we will explore the financial feasibility of developing a “Best” class apartment complex, focusing on the estimated project funding, internal rate of return (IRR), cash on cash return, mortgage considerations, and rental yield.
Estimating Project Funding for a Premier Living Experience
Let’s consider the construction of a 10-unit “Best” class apartment complex, where each unit measures 887 sq ft. Based on the provided data, the cost to build such an apartment ranges from $76,512.54 to $206,536.06 per unit. This puts the total estimated project funding for a 10-unit complex at a range of $706,933 to $1,829,755.70. This initial investment sets the stage for our financial analysis, providing a baseline for the expected capital outlay.
Internal Rate of Return and Cash on Cash Return: Key Investment Metrics
The IRR is a comprehensive measure that accounts for the projected cash flows from rental income and the potential sale of the property over the investment period. To calculate the IRR, we would need to know the net operating income (NOI), the initial investment, and the eventual sale price. The NOI is the annual rental income minus operating expenses, excluding mortgage payments.
For the cash on cash return, we consider the annual pre-tax cash flow and divide it by the total cash invested. Assuming an annual rental income of $144,000 and operating expenses at 35% of the rental income, the NOI would be $93,600. If the total cash invested is $141,386.60 (20% down payment), the cash on cash return would be a robust 43.3%.
Mortgage Considerations for Multi-Family Developments
When it comes to financing the project, a multi-family mortgage is often a necessity. Assuming an 80% loan-to-value ratio, the loan amount would be $565,546.40. At an interest rate of 4% over a 30-year term, the monthly mortgage payment would be approximately $2,699.21. This mortgage calculation is crucial for understanding the debt service obligations and for projecting the investment’s cash flow.
Rental Yield: Measuring Income-Generating Potential
Rental yield is a straightforward metric that provides insight into the income-generating potential of the property. It is calculated by dividing the annual rental income by the total property cost and then converting it to a percentage. In our scenario, with a total property cost of $706,933 and an annual rental income of $144,000, the rental yield would be an attractive 20.4%.
Conclusion: The Attractiveness of Texas Multi-Family Housing Investments
The financial analysis of a “Best” class multi-family housing investment in Texas reveals a compelling opportunity. With a cash on cash return of 43.3% and a rental yield of 20.4%, the investment shows strong potential for profitability. However, it is important to note that these figures are based on several assumptions and estimates. Potential investors should conduct a thorough due diligence process, consider market conditions, and consult with financial advisors to tailor the analysis to their specific situation. Nonetheless, the robust demand for quality rental housing in Texas suggests that such investments can be a wise addition to a well-rounded real estate portfolio.
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