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

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Delaware 262 Shore Ln Lot 22 Milford DE19963 - 4 Bed and 3 Baths with 2 Attached Garages on Gross Floor Area 2000 sqft - Built in 2022 - Price $396000 (3)_result

Under Construction Newly Built House in Delaware 262 Shore Ln Lot 22 Milford DE19963 – 4 Bed and 3 Baths with 2 Attached Garages on Gross Floor Area 2000 sqft – Built in 2022 – Price $396000 (3)_result

Residential Construction Market Analysis in the State of Delaware, USA

Building costs are 2% above the national average in the state of Delaware, equivalent to the states of Maryland and Louisiana, and closer to the states of Colorado, Michigan and Nevada by a deviation of 1%. Delaware is one of the jewels of the East Coast, although you don’t hear much about it anywhere. The state has a lot to offer, although it is often overlooked by other larger nearby states such as New York, Philadelphia, or any other large city nearby. It has impressive towns full of history and charm, and it also has a favorable environment for business of all kinds.

Delaware’s towns and cities also have a charm you won’t find anywhere else. This is one of the main reasons many people choose to move to the state. In addition, Delaware has one of the lowest unemployment rates in the country, around 3.5%. That’s about 0.5% lower than the national average.

Navigating the Delaware real estate landscape can be tricky. Whether you’re a home buyer or seller, understanding local market conditions is a complicated process that involves many factors, so in this article, we’ll cover a few of them.

Here we will focus on the real estate market and residential construction throughout the state of Delaware. You will be able to see the average prices of the properties, the state of the real estate market, what is expected to happen next, and the type of constructions that are present here.

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Delaware Construction Outlook

The state of Delaware, located in the South region, in the South Atlantic division, is called “The First State”, for having been the first of the 13 original entities to approve the North American Constitution. As much as it is in the southern region, it shares a cultural, climatic, and architectural level.

Buildings in Dover, Wilmington, and Newark tend to be more modern than in other parts of the state. With some tall buildings, although Dover and Newark are smaller than Wilmington.

All of the houses are typical brick or cement houses, unlike some mobile homes that are popular in outlying Delaware cities. These houses can be moved to any piece of land, and are much cheaper than building a concrete house from scratch, making them quite an attractive option.

Delaware Housing Market Analysis and Forecast

The Delaware real estate market is marked by rising values ​​during 2022. The various properties listed in Delaware saw a 17.8% increase over the last year, which is a good figure for sellers and investors, but not so much for buyers.

Properties are selling quite fast in Delaware when compared to the national average. Properties typically take 35 days to sell, while in other states this number is 60 days, so it stands up pretty well when viewed in comparison.

However, there was a decrease in the number of houses that were sold. During April, a little more than 60 houses were sold throughout the state, while during that same month in 2021, more than 80 had been sold. In any case, April is not usually the best month for the real estate market in this state, so you can be optimistic about what the future holds.

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The Delaware real estate market is one of the most competitive in the entire country, so you should be prepared to face offers made by other buyers who may have more money or better payment methods. With time everything is possible, you just have to be patient and you will be able to find your dream home in Delaware.

Delaware Average House Price (Median Home Price)

Home values in the Delaware real estate market saw an increase of 17.8% over the last year as we saw in the previous point, which also affected the value of median homes. The average sale value of a median home is $377,000, always taking into account properties that are houses with 3 bedrooms, 2 bathrooms, a kitchen, a living room, a garage, and a small garden.

The Delaware real estate market is growing and the faster you get in, the better. The median home value in the small towns of this state is $238,000. And it is expected to grow by around 2.8% this year.

This means that it’s not hard to find affordable properties available. The median home value in Dover is just over $190,000. It rose about 5.7% last year and is expected to rise even more this year. Home values are more in line with the state average in Wilmington, where the median home value is about $300,000.

Proposed Residential Building Projects in Delaware

In Wilmington and Dover, there are some construction companies that are promoting residential building projects. They usually range from 10 to 20 floors, being quite modern buildings compared to the others that already exist in those cities. These buildings have apartments for families, single people, or even studio apartments in some cases.

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There are also some projects of luxury houses in the most affluent neighborhoods of Delaware, which are houses with more than 5 rooms, with two floors or more, and they are usually luxurious inside too, with materials of the latest quality and of great value.

In the coastal areas, there are some projects of small buildings, of less than 10 floors, designed to be used for rent, especially taking into account the increase in tourism that has been seen in that area in recent times.

In the areas near the University, there are condominium projects under development, to house university students who are moving to the state but do not have a place within the housing complex of the university campus.

Delaware 86 Winery Way Felton DE19943 - 3 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 2100 sqft - Built in 2022 - Price $400000 (3)

Newly Built House in Delaware 86 Winery Way Felton DE19943 – 3 Bed and 2 Baths with 2 Attached Garages on Gross Floor Area 2100 sqft – Built in 2022 – Price $400000 (3)

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

Building costs are 2% above the national average in the state of Delaware, equivalent to the states of Maryland and Louisiana, and closer to the states of Colorado, Michigan and Nevada by a deviation of 1%.

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Delaware ranges from $351.79 per sqft to $539.27 per sqft, with the average being $415.16 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 Delaware ranges from $213.80 per sqft to $327.73 per sqft, with the average being $252.31 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 Delaware ranges from $138.21per sqft to $209.93 per sqft, with the average being $161.81 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 Delaware ranges from $100.87 per sqft to $154.68 per sqft, with the average being $119.04 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 Delaware ranges from $81.88 per sqft to $125.39 per sqft, with the average being $96.55 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 Delaware ranges from $64.58 per sqft to $98.98 per sqft, with the average being $76.18 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 3 Metropolitan Areas/Cities in Delaware – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 57 municipalities grouped into 3 counties in the state of Delaware. 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 Delaware 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 Delaware:

Delaware Average 2% (2% more than X)

  • Dover 199 -4%
  • Delaware Average 2%
  • Wilmington 198 4%
  • Newark 197 6%

The Metropolitan Area List above as well as the Bar Graphs below shows that Dover is the cheapest city to build a private home in the state of Delaware, and Newark is the most expensive city to build a home. Building costs are -4% below the national average in Dover and 6% above the national average in Newark.

Cheapest Places To Build in Delaware:

Dover is the cheapest to place to build at -4% below the national average, followed by Wilmington City at 4%.

Expensive Places To Build in Delaware:

If anything between 5% and 10% is considered expensive, then there is one such metropolitan area in the state of Delaware. The cost of building a home in Newark is 6% above the US average.

More Expensive Places To Build in Delaware:

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

Very Expensive Places To Build in Delaware

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

Delaware State Average Costs:

Private home building costs in the state of Delaware are 6% above the US average. Newark is the most expensive city to build a home in Delaware, and the state of Delaware is number 36 on the national ascending costs scale.


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