Home Buying in Austin>Question Details

Clifford S.…, Home Owner in New York, NY

is it possible to build a brand new house (at least 2500 sq ft), 4-5 bedroom, 3 bathrooms near Austin TX for 200k?

Asked by Clifford S. Chu, New York, NY Wed Apr 16, 2014

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Linda Quist-Marks’ answer
Clifford..........indeed it is possible here in Austin. I am an agent that specializes in brand new home communities. Although prices have increased dramatically the pass two years because of the re-locators moving to central Texas there currently STILL is available homes in your desired price range and square footage. Contact me for more information.
0 votes Thank Flag Link Sat Apr 26, 2014
Clifford; can you email me at fhainspections@austin.rr.com with your specifications, location, etc. I may be able to help.
0 votes Thank Flag Link Sun Apr 20, 2014
Realistically no. Your asking to build a home on a piece of land in one of the fastest growing, most vibrant cities in the US for $80 a square foot, this is totally unrealistic. I don't need to know Texas well, I know building and even having a production builder build a very basic home for you you need to be thinking between $100 - $125 per square foot at a minimum. If you own the land it may be possible to get a modest modular home erected for $80- $85 per square foot but again you'd need to own the land and there would be land development costs before the modular could go up. My guess is realistcally you're probably looking in the $400,000- $500,000 range
0 votes Thank Flag Link Thu Apr 17, 2014
this would be based on me owning the land
Flag Thu Apr 17, 2014
I help lot of people with new homes, and in my experience, unless you are an experienced builder with deep connections in the local trades (tile, electricians, flooring, carpentry, plumbing, roofing, etc), or have built several homes before, it is unlikely you will be able to build a house for less than $200 a square foot.

The cost of land in Austin is going up. Lots are hard to find, and often in subdivisions with HOAs, and required builders. Materials are expensive. And so many of the local builders have such a monopoly on the market.

Plus, unless you are going to live in the house forever, it probably won't suit the style of the typical Austin home-buyer, who is looking for large kitchens, open family rooms, nice outdoor patios, and bathrooms with large closets and soaking tubs.

In my experience, if you were to spend $200,000 in building a new house, there are better ways to invest. Take $50K, and use that as a 20% down on 4 rental properties. Properly selected, you could have great cash flow, and watch your investment increase as the housing prices in Austin continue to rise.
0 votes Thank Flag Link Thu Apr 17, 2014
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