Building Costs Per Square Foot in the State of Arizona, USA

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 A newly-built 3 bedroom house with 2 bathrooms, 2 attached garages, gross floor area 669 sqft on 1326 Lucky LN, Queen Creek, Arizona 85142


A newly-built 4 bedroom house with 3 bathrooms, 2 attached garages, gross floor area 2,669 sqft on 1326 Lucky LN, Queen Creek, Arizona 85142 – Price $795,000

Residential Construction Market Analysis in the State of Arizona, USA

Building costs in Arizona are 4% below the national average, and equivalent to the states of Alabama, Georgia, Kentucky, North Carolina and Virginia. The real estate market has always had unstable moments or those periods where it is risky to invest. But since 2020 and as a result of the pandemic, the risks of investing in this sector have made many people doubt whether it is worth building a house or investing in a place at all.

The truth is that in the United States the real estate market has not suffered as much compared to other parts of the world, but even before deciding if it is worth building or investing in a place, it is important that you have some kind of outlook in the area and the different projects that are carried out in the area (and are successful) so that you have a parameter of what should be done and whatnot.

In this article we will focus mainly on the state of Arizona and its different characteristics of the real estate market. This will help you to have a better picture of the general situation and learn more about what is happening here.

 

Arizona Construction Outlook

Arizona is located in the western region of the United States and directly borders Mexico. This state has a little more than 7 million inhabitants, but considering the territory in which it extends, the population density is quite high, especially if one takes into account that Arizona is not usually thought of as a highly populated place.

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These images are never lacking in series or movies of Arizona as a desert place or the wild west itself, but this is far from reality. Phoenix, its capital, is transforming into a great city, increasingly modern, which makes more people want to live there.

Unlike other better-known states, Arizona has low taxes and does not have very restrictive regulations when it comes to building a home, which makes it attractive for families and investors. It only has a few national parks or protected areas because they belong to the indigenous people of Arizona, but there is still plenty of space for you to build a forever home.

Maybe the school district isn’t the best when it comes to kindergarten or elementary schools, but it does improve in high schools and without a doubt, Arizona has some very good state universities.

If you are looking for the benefits of living in a city but want to have a big house or be in a quiet place and in contact with nature, then Phoenix is ​​the right place.

 

Arizona Housing Market Analysis

Arizona is seeing an incredibly positive boom in the world of real estate markets and projects. In the last semester, the number of properties (including land, houses, and buildings) for sale increased by 7%. The value of the properties also increased by 30%, which is impressive. Some experts say that this is because people are looking to live in places where peace and quiet reign, or perhaps thanks to telecommuting they can live in different places, and Arizona stands out above the rest.

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In its three major state centers (Phoenix-Mesa-Scottsdale), there is a trend of increasing demand for properties, with a fairly stable level of supply, so no slowdown is expected in the Arizona real estate market. On the contrary, it is considered that he will continue to believe (albeit slowly) in the next 2 years.

Specialists in the real estate market affirm that a 10% annual increase in the value of properties can be expected in the next 5 years, eventually benefiting buyers who buy their first home, and also investors.

 

Arizona Average House Price (Median Home Price)

Arizona is one of the cheapest states to live in, and also to build your forever home or invest in real estate projects. It is estimated that with $250,000 you can build a luxurious house on the outskirts of its big cities. With the luxurious house, we mean one that has 4 rooms or more, made with modern, elegant and expensive materials.

You can also build a house of the same dimensions but with more modest materials, at an estimated value of $200,000. The standard house in Arizona is that chalet type house with 3 bedrooms with two bathrooms, garage and in some cases, they are two-story houses.

In Arizona it is much more common to live in a house than in a building, tall buildings are only found in city centers. In any case, you can find some condominiums on the outskirts, although the normal ones are the typical middle-family houses.

It is always advisable to avoid areas close to universities since fraternities or sororities usually live in large houses throwing parties, which can be annoying if you are going to live with your family. It can also affect you if you are an investor, so try to find places that are at least 10 blocks away from university campuses.

See also  Building Costs Per Square Foot in the State of West Virginia, USA

 

Arizona Residential Building Projects

Replay Destinations is one of the largest developers of real estate projects in Arizona since it works in different sectors of the state. He usually specializes in residential projects and building luxury or modern homes.

The developer PCS Development is the one that works the most in Mesa and is always taken as a reference when deciding where to invest or to receive advice on the purchase of homes or land. They are actively working on 300 residential real estate projects, that is, on the construction of more than 300 houses.

There are several construction projects that have to do with retail, whether in shopping centers or the typical shopping supermarkets. Although they are not residential places, this also tells us about the market situation. The fact that people invest in places like malls or where people are expected to go, means that there will also be an increase in nearby residential projects.

Do not expect high buildings or skyscraper projects, as these are not very common in Arizona, only in Phoenix but they are nothing compared to those in other states. If you came across different residential house projects like the ones listed above. They are usually luxury or modern houses, with glass walls to let in natural light, something that abounds in Arizona.

A newly-built 4 Bedroom House with 2 Bathrooms and 2 x attached garages, gross floor area 1890 sqft - on 4312 W Los Reales Rd, Tucson, Arizona - Price $380,000

A newly-built 4 Bedroom House with 2 Bathrooms and 2 x attached garages, gross floor area 1890 sqft – on 4312 W Los Reales Rd, Tucson, Arizona – Price $380,000

Building Costs Per Square Foot for Single Family Homes in the State of Arizona, USA

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Arizona ranges from $331.09 per sqft to $507.55 per sqft, with the average being $390.74 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Arizona ranges from $201.23 per sqft to $308.45 per sqft, with the average being $237.47 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Arizona ranges from $130.08 per sqft to $197.58 per sqft, with the average being $152.30 per sqft. As the bar chart shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Arizona ranges from $94.93 per sqft to $145.58 per sqft, with the average being $112.04 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Arizona ranges from $77.06 per sqft to $118.01 per sqft, with the average being $90.87 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Arizona ranges from $60.78 per sqft to $93.16 per sqft, with the average being $71.70 per sqft. As the bar graph shows below, bigger homes with a large gross floor area have the lowest building costs per ft2, and smaller homes with a small gross floor area have the highest building costs per ft2. Medium-sized homes are somewhere in between. Generally, the building cost per square foot decreases as the size of the house gets bigger, and increases as the house gets smaller.

List of 10 Metropolitan Areas/Cities in Arizona – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 91 municipalities grouped into 15 counties in the state of Arizona. The bar chart below indicates that building costs vary in each metro city/town. The construction cost per square foot in each of these metropolitan cities varies from the state and national average by a certain percentage based on the location factor also known as the local modifier.

The percentage deviation of building costs from the National Average for each metropolitan area in Arizona is shown below.

If $X is the Average National Building Cost in the USA, then it will cost the following to build a residential property in each metro city/town in Arizona:

Arizona Average -4% (4% less than X)

  • Chambers 865 -8%
  • Douglas 855 -8%
  • Flagstaff 860 -7%
  • Show Low 859 -7%
  • Prescott 863 -6%
  • Kingman 864 -5%
  • Tucson 856-857 -5%
  • Yuma 853 2%
  • Mesa 852 3%
  • Phoenix 850 3%

The Metropolitan Area List above as well as the Bar Graphs below shows that Chambers and Douglas are the cheapest cities to build a private home in the state of Arizona. Phoenix and Mesa are the most expensive cities to build a home. Building costs are -8% below the national average in the city of Chambers and Douglas, and 3% above the national average in Phoenix and Mesa.

Cheapest Places To Build in Arizona:

Chambers and Douglas City are the cheapest to place to build at -8% below the national average, followed by Flagstaff and Show Low at -7%. The third cheapest place to build is Prescott at -6% below the national average. The fourth cheapest cities to build a house are Kingman and Tucson at -5% below the national average. The fifth cheapest place to build a house is Yuma at 2% above the US average. Building costs in the city of Mesa and Phoenix are 3% above the US average.

Expensive Places To Build in Arizona:

If anything between 5% and 10% is considered expensive, then there are no such metropolitan areas in the state of Arizona.

More Expensive Places To Build in Arizona:

If anything between 10% and 15% is considered more expensive, then there is no such metropolitan area in the state of Arizona.

Very Expensive Places To Build in Arizona:

The most expensive places to build a house in the USA are those 15% above the national average. There are no such places in Arizona.

Arizona State Average Costs:

Private home building costs in the state of Arizona are -4% below the US average. Building cost rates in the metropolitan areas of Kingman and Prescott are closer to the Arizona state average by a deviation of 1%. Phoenix is the most expensive city to build a home in Arizona, and the state of Arizona is number 12 on the national ascending costs scale.


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