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

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2718 W Doublegate Dr, Albany, GA 31721_result

Newly-built single family house under construction with 4 bedrooms, 2 bathrooms and 2 garages on 0.47 acres of land. With Brickwalls and Slate roof. Total gross floor area of 2160 sqft. Located on 2718 W Doublegate Dr, Albany, GA 31721 – Price $215,000 Square-foot cost rate $100 per sqft.

Construction Market Analysis in the State of Georgia, USA

Building costs in the state of Georgia are 4% lower than the national average, and equivalent to the states of Alabama, Arizona, Kentucky, North Carolina and Virginia . FRED data shows the number of monthly permits issued for new private housing structures in Atlanta-Sandy Springs-Alpharetta, Georgia from February 1988 to February 2022. There were 4055 permits issued in February 1988. The monthly stats decreased to 1400 in January 1991 and then rose gradually to 5783 in April 2000. The number stabilized until July 2003, then climbed again to 6373 in September 2003. The highest peak in history was observed in November 2004 at 9022 monthly permits. The second highest peak was recorded in July 2004, at 7545 monthly permits. The average number of monthly permits remained stable until October 2006, at 5943. This was followed by a drastically steep decline, whereby the number dropped to 365 permits in January 2009. We can safely say October 2006 was the end of a construction boom in this part of Georgia which started in January 1991. The recession began in January 2009  and continued throughout to 2011, with monthly permits at their lowest and remaining relatively stable (365 to 598), after which signs of recovery began to emerge with permits increasing to 1229 in February 2012. The upward trend continued up a gentle slope to 3514 in June 2016. From there, it dropped to 2216 in December 2017, then rose in the next two years to achieve the highest peak value since June 2007 of 4234 in May 2018. The second highest peak value (4184) was also achieved during the same year in November 2018. The numbers stabilized until the end of February 2022, going from 2472 in February 2018 to 3849 in February 2022, with a decline in March 2020 (2054 permits).

See also  Building Costs Per Square Foot in the State of Maryland, USA
Historical Building Permits for New Private Housing in Atlanta Georgia - 1988 to 2022

Historical Monthly Building Permits for New Private Housing in Atlanta Georgia – 1988 to 2022

A Construction Outlook Survey in the State of Georgia, USA done by Kennesaw State University shows that 48.1% of contractors in the state are specialty contractors, 42.3% are general contractors, 5.8% are heavy contractors and 3.8% are home builders. The majority of General contractors (55%-60%) claim a market revenue share ranging from $50 million to more than $100 million. The majority of specialty contractors (65%-75%) generate project revenue ranging from $24.9 million and below. Heavy builders and home builders have the smallest share of revenue in the construction market, not exceeding 10%. In 2019, General contractors generated $460,127,407 in gross revenue, specialty contractors earned $127,428,201, home builders earned $152,500,000 and heavy contractors earned $55,125,000.

The Cumming Insights Report shows historical construction output statistics in Atlanta as well as cost/volume projections. The total construction market output increased by 1.4%  and 1.5% in 2017 and 2018 respectively. It decreased by -1.8% in 2019 and 2020 during the onset of the Covid-19 pandemic. The output increased by 0.8% in 2021, and it’s projected to increase by 4% and 2.6% in 2022 and 2023. The stats show that while commercial building was negatively affected by the Covid-19 pandemic, with annual project valuations decreasing by -2.6% in 2019, -10.2% in 2020 and -7.2% in 2021, the residential construction market improved and remained resilient, posting a 3.4% increase in 2019, 8.1% increase in 2020 and 0.2% increase in 2021. The worst performance in the housing market was observed in 2018 before the pandemic when volumes decreased by -6.1%. The residential construction market is projected to grow by 1% and 1.8% in 2022 and 2023 respectively. Commercial building is expected to continue with a negative performance into 2022 and 2023 with a negative growth of -0.8% and -1.5% respectively.

The construction output volume in Atlanta, Georgia has remained stable from 2016 to 2021, hovering between $23.5 million and $24 million a year. It is projected to increase by a small margin to $24.9 million and $25.1 million in 2022 and 2023 respectively. Residential construction makes a up a larger percentage of the annual volumes at 45% to 47%, with commercial building, manufacturing, healthcare, educational and infrastructural building making up the remainder. Infrastructure projects take up 30% of the total, commercial projects take up 15%. Education, healthcare and manufacturing have the smallest share.

Employment in construction has increased in Atlanta over the years from 2012 to 2019. There were 88,000 trade workers in 2012, 100,000 trade workers in 2014, 115,000 workers in 2016, 125,000 workers in 2018 and 130,000 workers in 2019. From there on, figures stabilized over the next three years until 2021. The unemployment rate in the Atlanta construction industry has been decreasing sharply from 2012 to 2019, starting at 8.6% and ending at 3.4%. It increased for the first time in 2020 during the Covid-Pandemic, climbing to 6.9%, and then falling again to 3.4% in 2021.

The amount of investment in the Georgia construction market is depicted by the construction spending index, measured from 2013 to 2021, and projected to 2022 and 2023. The Georgia state index is compared against the Atlanta and national index. The curves are similar in shape but the Atlanta index is higher than the Georgia index and the national index is below the Georgia index. In 2013, the construction spending index in Georgia was 1. It increased to 1.4 in 2016 and remained stable until 2021. It’s projected to remain stable in 2022, 2023 and 2024. Between 2013 and Q4-2016, construction volume (availability of work) was higher than the availability of labour. Between Q4-2016 and 2019, availability of labour was higher than the amount of work available. In 2020, both metrics plunged down to a negative of about -2.4%. Availability of labour fell from 4.8% in 2019 to -2.4% in 2020. Construction volume fell from 2.3% to -2.4%. Although availability of labour increased once again to 2% in 2021, the amount of work in the construction market remained low at a consistent rate of -2.4%. Infrastructure projects are driving construction activity in the state of Georgia, with a total valuation of $36 billion.

Historical Average House Price in the State of Georgia, USA - 2013 to 2022

Historical Average House Price in the State of Georgia, USA – 2013 to 2022

The median price of a single-family home in the state of Georgia is $300,885. Home prices have increased by 27.3% since 2021. In 2013, the median price of a home was $126,000. House prices have increased almost linearly to $217,000 in 2020. From there, the state registered its steepest rise to $300,000 in March 2022.

FRED Data shows that home ownership was at its highest between 1994 and 2005, registering a peak value of 71.8% in 2002 and maintaining a range of 69.8% to 71.3% during this period. Values dropped from 70.9% in 2004 to 67.9% in 2005, stabilized up to 2008 at 68.2%, and then declined down a steep slope to 62.3% in 2016. Rates climbed to 64.4% in 2019, taking a sharp rise to 67.3% in 2020 which resembled the highest increase since 2010. Eventually, home ownership rates dropped sharply to 64% in 2021. So that means 64% of residents in Georgia own a home.

One of the interesting housing projects in Georgia is the Ariston mixed-use residential development built on 16 acres of land which will accommodate 550 apartment units, a Hilton Garden Inn with 109 rooms, and commercial/shopping/restaurant complex on 26,000 sqft of space. Situated on The Pointe centre, the 283-unit  Ivy-at-Ariston apartment is already complete, and the 265-unit Enzo-at-Ariston apartment is in the construction phase. The Hilton Garden Inn is scheduled to be finished by 2023. In Buford, Georgia, another pedestrian-only residential complex known as the Exchange@Gwinnett is under construction. The mixed-use development is set on 106 acres of land and it will have 1000 residential units within walking distance of a shopping/restaurant complex with 465,000 sqft of space.

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

Class 1 – Luxury Single Family Homes

The building cost per square foot for luxury private homes in Georgia 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 1 Luxury Single Family Homes Building Costs GEORGIA

Class 1 Luxury Single Family Homes Building Costs GEORGIA

Class 2 – Semi Luxury Single Family Homes

The building cost per square foot for semi-luxury private homes in Georgia 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 2 Semi Luxury Single Family Homes Building Costs GEORGIA

Class 2 Semi Luxury Single Family Homes Building Costs GEORGIA

Class 3 – Best Standard Single Family Homes

The building cost per square foot for best-standard private homes in Georgia 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 3 Best-Standard Single Family Homes Building Costs GEORGIA

Class 3 Best-Standard Single Family Homes Building Costs GEORGIA

Class 4 – Good Standard Single Family Homes

The building cost per square foot for good-standard private homes in Georgia 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 4 Good-Standard Single Family Homes Building Costs GEORGIA

Class 4 Good-Standard Single Family Homes Building Costs GEORGIA

Class 5 – Average Standard Single Family Homes

The building cost per square foot for average-standard private homes in Georgia 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 5 Average-Standard Single Family Homes Building Costs GEORGIA

Class 5 Average-Standard Single Family Homes Building Costs GEORGIA

Class 6 – Minimum Standard Single Family Homes

The building cost per square foot for minimum-standard private homes in Georgia 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.

Class 6 Minimum-Standard Single Family Homes Building Costs GEORGIA

Class 6 Minimum-Standard Single Family Homes Building Costs GEORGIA

List of 15 Metropolitan Areas/Cities in Georgia – Percentage Deviation of the City/Town Building Cost from the National Average ($X), in Descending Order:

There are 535 municipalities grouped into 159 counties in the state of Georgia. 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 Georgia 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 Georgia:

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

  • Atlanta 303 12%
  • Marietta 300-302 4%
  • Valdosta 316 -1%
  • Augusta 308-309 -2%
  • Buford 305 -2%
  • Columbus 318-319 -3%
  • Macon 312 -4%
  • Savannah 314 -4%
  • Athens 306 -5%
  • Albany 317 -6%
  • Hinesville 313 -6%
  • Dublin/Fort Valley 310 -8%
  • Calhoun 307 -9%
  • Kings Bay 315 -10%
  • Statesboro 304 -11%

The Metropolitan Area List above as well as the Bar Graphs below shows that Statesboro is the cheapest city to build a private home in the state of Georgia, and Atlanta is the most expensive city to build a home. Building costs are -11% below the national average in Statesboro and 12% above the national average in Atlanta.

Deviation of City Building Costs from National Average GEORGIA - Alphabetical Order

Deviation of City Building Costs from National Average GEORGIA – Alphabetical Order

Deviation of City Building Costs from National Average GEORGIA - Descending Values

Deviation of City Building Costs from National Average GEORGIA – Descending Values

Cheapest Places To Build in Georgia:

Statesboro is the cheapest to place to build at -11% below the national average, followed by Kings Bay City at -10%. The third cheapest place to build is Calhoun at -9% below the national average. The fourth cheapest city to build a house is Dublin/Fort Valley at -8% below the national average, followed by Hinesville and Albany at -6% below the national average. The sixth cheapest place to build a house is Athens at -5% below the US average. Building costs in the city of Savannah and Macon resemble the national average.  The cost of building a home in Columbus is -3% below the US average. Buford and Augusta are -2% below the USA average. Building costs in the city of Valdosta are -1% below the national average, and Marietta is 4% above the US average.

Expensive Places To Build in Georgia:

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

More Expensive Places To Build in Georgia:

If anything between 10% and 15% is considered more expensive, then there are is one such metropolitan area in the state of Georgia. Building costs in the City of Atlanta are 12% above the national average.

Very Expensive Places To Build in Georgia:

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

Georgia State Average Costs:

Private home building costs in the state of Georgia are -4% below the US average. Building cost rates in the metropolitan areas of Columbus and Athens are closer to the Georgia state average by a deviation of 1%. Construction costs in the cities of Macon and Savannah are equal to the national average. Atlanta is the most expensive city to build a home in Georgia, and the state of Georgia is number 13 on the national ascending costs scale.


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