Build Your Own Home: Labor Costs
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- เผยแพร่เมื่อ 11 ก.พ. 2022
- Would you like to build your own home? Here a builder talks about the some of the key labor costs when building a new home. This is a great video for owner builders who want to know how much they might save by doing some of the physical labor themselves for their new home. When you build your own home as an owner builder, you get to choose who does the work. Maybe your uncle is a framing contractor who can help you save $20k on your new home. Or, you might have painting skills you acquired in college. All of these are additional ways owner builders can save money when you build your own home. Disclaimer: Labor rates have been changing rapidly since the pandemic started and will continue to do so. Local market conditions, and the availability of workers, can drastically affect labor costs so it's important to bid out your projects to a minimum of three companies to determine actual costs prior to starting a project. For more details on how to bid out a new home project and create a detailed budget, check out the "Build Your Own Home" online course at ownerbuilderclass.com/
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I purchased Mikes' class "Build your own home" @ open book build as a refresher course for myself, I learned a lot and was reassured of other topics I've been researching. Mike allows you to reach out to him through this course and I must say the world is short of people who add real value but Mike and the course are winners! I reached out twice so far to Mike and he responded quickly with pertinent information. I love to speak with others that are building or are in the pre-building phase as I am. Good luck to all stay focused Its rough out there. -Paul Coppola
Thanks for the kind words Paul. I'm looking forward to seeing you successfully build your dream home!
One way that I save on labor costs is to do the monkey work part of the job myself. Electricians are fascinated by the complicated puzzle of control runs and balancing circuits, etc. They do NOT become electricians in order to drill holes through 2x4s! So, I drill the holes, nail in the outlet boxes, shave down the studs (I love my electric planer!), and install the wire protector plates. Then, the qualified professional comes in and wires the house. He's got the plans, and I have all of the boxes in place - it's easy-peasy for the electrician to design and install the actual electrical system - which is what electricians like to do best, anyway! I also install the finished light fixtures and trim plates. Some guys are horrified, but most electricians are on board. I do the same thing with plumbing (I have sturdy nephews who can horse the bathtub upstairs) and HVAC (I make sure there are chases available through the framing - it's stupid how many designers forget to leave room for mechanical systems). I've saved anywhere from 20% to 50% on the labor for major mechanical systems. Great information - keep up the good work!
I love those ideas Linda…Especially now with the crazy tight labor market. A trade that was too busy to handle the entire house might be able to just perform the real technical pieces. As you said, some licensed trades will struggle with this idea but I know a few that would be all for it. Thanks for the valuable input!
Happy to share. I noticed the same thing-some guys are horrified, some think it’s a great way to squeeze in a small job between bigger contracts. 😊
I did the same on a 5000sft home.
Even if u do the job of the emchanical labor, they will atill charge $5/sf electriscian, $3.5/plumming, not discount, not one cent, not even a thanks for doing their job probono.
@@rightright6582 Sometimes true. Some electricians don't want the job unless they get 100% of it. Others are more flexible. By putting in the unskilled labor, the electrician can fly through the job, finishing in less than half the usual time. You have to shop around. I scout for talent at local electrical distributors. So, I would say you're dealing with electricians who use a flat formula ($X for Y/sf) rather than a time-on-the-job estimate. It may also vary by region. I was able to do this in North Carolina and Colorado, but NOT California (one of the most heavily regulated building areas on earth). I never ended up doing the work pro bono and ended up saving money.
Great video! Thank you so much !
Answers some of my biggest questions about how much I could potentially by adding my own labour where possible. Thanks for this!
Wow, I wish I'd been able to see this a year ago! Excellent tips!
EXCELLENT info !
I love the videos. I recently started the process of trying to design my own home and I was wondering if the course had any insight I may want to know more about for the design portion of the work. Does the course include any of those? If not, are there any recommendations you could send? Thanks a lot!
Fantastically informative videos.
Could you tell me about drywall hanging and taping (including ceilings) along with sanding, applying texture and painting? In your experience how many men and labor days and the cost per sq. ft. for a house this size? I love your videos.
Wife and I just moved to Phoenix from Mississippi. Homes here are 300% the price of Mississippi. If we're going to own a house here we're going to have to figure out ways to reduce costs significantly. This year will be spent figuring out how to make that feasible. Thank you in advance for helping us achieve that.
Hi Michael. What are your thoughts on having the walls and floor panelized offsite?
One problem people I’ve talked to in Iowa are having is getting trades to even call them back let alone work for them. The trades are so busy working with established builders that they don’t care about the single family home builder. They’re only providing service to their guaranteed long term builder relationships. High demand + labor shortage
Absolutely Nate. Even the biggest builders in the country are complaining about the labor shortage. In times like these owner builders need to get creative to get the most in demand trades to the jobsite to finish the work.
yeah I have been making calls to different trades to line up the people I want to work with even before buying the land. I want to make sure its good to buy already built vs trying to build on my own.
@@aloiswinzinger1160 I’m considering the bardominium route because the builder can take care of utilities, foundation, and insulated shell. From there getting it framed out and roughed in would be far more easy than a stick built on site. It would eliminate dealing multiple trades. Keep the design simple and be prepared to wait. Patience and having a plan B and C is crucial. Good luck!
Very informative, thanks! This answers my question I emailed you lol
Hey Michael, Fantastic video!!
Do you happen to have a excel worksheet of the overall costs?
If not happy to assist you to set this up with your guidance
what is the breakdown between the labor / material / permit / gc fee break down.
Get a number of bids on each trade
What does the $5/sf for the electriscian include? Just control run and balancing wire
I'm looking for a job in Masonry so I can start my own house in a year or 2, a brick home is probably cheaper at this point and is much more efficient than wood. Getting paid to learn how to build a house is not a bad idea.
look in to ICF homes. its great for insulation and many other reasons.
@@aloiswinzinger1160 ICF and precast concrete homes are the way to go. The only downside to these two is finding experienced contractors/builders that know what they are doing. I want to build in the near future, but CMU may be the way to go. It'll be more expensive, but finding masons is easier.
@@fsl4346 hempcrete is the future
Brick is just applied over the wood frame.
I despise 'luxury' vinyl plank!
Another great video. I am a contractor in what is becoming suburban Tennessee and our business is mainly framing homes. Where do I need to go to be able to charge $12.50/sf for a simple home? I know my pricing is a little behind inflation, but half of that price is the industry norm here. Thank you for your content. I enjoy watching to see what my future clients are learning.
Thanks for sharing Jason. It’s good to know that framing labor is still somewhat affordable in some areas. The $12.50 is an average number for across the U.S. For example, much of Chicago is Union labor which drives up the cost. I know Northeast Ohio is close to the $12. With the crazy amount of construction going on, there seems to be a shortage of quality tradespeople in most areas. I’m guessing you’re schedule is full? Thanks for watching and commenting
Probably in high cost of living areas and high taxes. At the end of the day. You won't keep that much.
Come to Seattle. You will have a long line out the door at that price. Neighbor just added 1000 sq.ft at about$500/per sq ft.
Framing is $8/sqft
If you buy your own home from Menards, ❤ how much would it to be built. I have my own land that's already paid of years ago
You always seem to steer homeowners away from framing. But when you talk about saving money. That seems like a place to save. Remodel shows always seem to mention that taking out a wall and replacing it with a beam is going to cost $10k dollars and it needs an engineer. I can assure you as I have done it several times, all it takes is looking at a chart that the manufacturer provides. The beam costs a couple hundred dollars and a beam lift rental for a couple hours. In the end I did it for $1k. That in my mind is way more savings than some of the other items listed. I still appreciate watching your shows for the other ways to save. Keep up the good work.
most people are so inept they can barely tie their shoes, there's a lotta people making money in our economy doing silly jobs for corporations giving them more money than brains. you can buy the lumber for a 2000' home now for around 9 thousand bucks so where is all the money being spent?
I have been doing this for 40 years. In my 20s once for real the Uncle was a painter and they where going to paint the interior on the weekend. They got nothing done because they watched a game and got drunk on Friday night. Messed me up big time. I rarely let anyone get involved anymore.
I had a question how did you get started I'm interested in that stuff
Is this in US dollar?
Yup warranty problems there
I want to purchase a property but now it’s becoming difficult day by day now I try to buy a property I need help to accurate estimate because no one give us accurate estimate I need help can you help me?
the current cost of lumber for a 2000' home is around 9000 bucks, if you know all the trades you can build for much less than these guys are saying, just get help when you need it from the guys in the lot at home depot in the morning.
You left out painting, Why?
For many, doing the labor yourself isn't even optional. Home costs have gotten so absurd that the cost of Labor is the difference between being able to afford a house or not being able to
Nice video but what about the foundation of the house,slab vs basement.
The cost difference between a basement vs. a slab can be significant depending on the climate. For this video, we tried to cover the labor that an owner builder might perform themselves or have friends help. I don't recommend tackling the foundation. We will do a basement vs. slab foundation video in the future...thx for the idea.
@@OpenBookBuild please do that basement vs slab soon. that is exactly the question I am contemplating now. Also if the basement should be a walkout to deal with the moisture.
American or Canadian prices? location matters in cost right?
These are U.S. prices
50.00 per hour
Has anyone signed up for the course and actually built? I feel like the labor rates he is quoting aren't even close to any labor rates around north texas. Like some of the comments below said: "most subcontractors" when not working for GCs since they are so busy right now will increase rates drastically. I've been calling around multiple trade laborers for past month since starting to watch the videos. Not one of the quotes were close to the price that has been provided.
He's talking in terms of "average" across the nation not your particular state. The averages will could easily double from one state to another or even one city to another in the same state as a matter of fact. And yes with how wild the world is, prices are constantly fluctuation from week to week you could get totally different answers due to the uncertainties we face, war, inflation, shut downs, protest, riots, etc etc.
12.49 per sq ft. for framing? In ga they will build you a custom home with cofferd ceilings, tray ceilings, barrel ceilings, custom stick frame roofs etc for less than 6$ a ft I used to frame 5 yrs ago and guys would build track homes with truss roofs for 1.80 to 2.50 a sq ft.
HVAC was quoted at 2.50/ sqft good luck with that. Duct, Equipment, and labor for that 1600 sqft home is 8500.00-10,000.00 depending on branding of System.
@@The_Humble_Servant he is only giving labor costs.
Lot (tract of land) 50 ft wide by 100 ft. With 50 ft road frontage. From road it goes up (due west) in levitation, every 7 ft ➡️ levitation goes up 3ft ↗️ on a slope the entire length of 100ft. What do you suggest?
Hi Magnus. Just a suggestion, with that kind of rise toward the back of the lot I might create a basement with a walkout condition in the front of the home. You could make the lower level the garage, laundry and some living space and the second floor would be the main living space. It's kind of hard to visualize, but I think it could make for a very efficient build. You would probably need some retaining walls in the back yard to "terrace" the grade up toward the rear property line. This would give you a few flat areas in the backyard to use.
No way that HVAC is being done for $4,000.00
How does an owner builder get insurance to cover general liability
Don't expect to save :big bucks" from your friends who are trades. That's just rude
promosm
If you are contemplating being an "owner/builder", acting as a General Contractor (GC) and thinking you will be saving Mucho money, you may want to rethink this.
Contractors are notorious for inflating all their prices, especially subcontractors when not working for a GC.
You only represent a one-time deal; a GC may represent future opportunities.
This means they (subcontractors especially) will take advantage of the situation. Few subcontractors. if any, will document anything or work under a legal contract.
If you are one of the few who do receive a contract, it will be vague and virtually unenforceable.
If they skip your job for a day, a week, or a month, so what; they get to it when it suits. Meanwhile, you wait...and pay.
Also consider that all your materials will be priced at retail (think big box stores). Even independent lumber yards will not give you "contractor pricing".
Other material outlets are just "wholesale" and closed to you since you are not a "licensed" contractor. Get the picture?
What do think is more cost effective: building a vehicle one part at a time from NAPA or just buying a vehicle off the lot?
Building your own house while a worthy endeavor, is really for the few who have or will obtain the necessary skills to do so.
Sure, it can be done but unless you have access to some competent family members, some skill endowed good friends, or have the skills yourself, you may want to reconsider.
"Builder/ Owner" is not for everyone. In fact, for very few. It is disingenuous to represent it otherwise.
I'm guessing you are an insecure builder? Or maybe you just look at the world with a negative bent? You made one accurate comment and many that expose your lack of understanding of the residential building business. First, the labor costs mentioned here represent my experience as a home builder and yes, these numbers can fluctuate greatly based on the supply/demand equation in local markets. You mention that subcontractors "inflate their prices" when not working for a GC. Maybe in some cases, but what do you think the G.C.'s are doing? Do you actually think the G.C.'s are passing on the slightly better deal they received from the subcontractors to their customer? Builders are charging market rate for their homes right now. Meaning, they are charging whatever they can get. I'm not hating on the builders here, it's just a function of market dynamics and the capitalism this country was founded upon.
When you say "few subcontractors will document anything or work under a legal contract"...you are absolutely wrong. Maybe this is the case if you hire Fred that stands outside of Home Depot in the mornings looking for work...but not the professional companies. Is it difficult to get tradespeople to show up to a jobsite today? Absolutely. The crazy remodeling and new home building market is seriously stressing the skilled trade labor force in this country. This labor shortage might have something to do with the fact that our government is paying off college student loans with no mention of the trade school students. Why would a young person pay money to go to trade school when they can get a free ticket to college?
Your comment that owner builders will be paying "retail/big box" pricing for building materials is absolutely wrong. Nobody buys quantities of building materials from big box stores. If they do, they don't know what they are doing. There are very capable building supply companies that know how to estimate building materials, build a lumber pack and ship lumber for a complete new home build. And in many cases, these suppliers will also supply the labor for roofing, framing, siding, window installation...etc. And contrary to your belief, these building supply company prices are significantly lower than Home Depot or Lowes. And yes, these building supply companies will supply owner builders. If a supplier says no today, it's because they just don't have the material to sell. The supply chain woes have hit building supply companies quite hard over the past 8 months.
Yes, becoming an owner builder is not for everyone. It is a complicated process that can be very stressful but also can be rewarding if you prepare yourself and learn everything you can before starting. Your comment that these videos are somehow "disingenuous" is also wrong. I would like to remind you that the videos are free and this is a free country. If you don't like them, don't watch. And by all means, if you don't have something useful to contribute, don't.
Drove through a construction site in FL sometime ago and all I seen was hispanic dudes working. Looks to me they are importing cheap labor. They charge premium prices, its a real scam.
I lived in southern california. We use to have people standing outside of HD looking for work. believe it or not some of them were skilled just no papers. Contractors picked them up mostly to do clean up work and let them prove themselves. I use to use them for moving items.
They aren’t cheap anymore in Colorado. They own the construction trade here and name their price. No one else wants to do labor jobs.
My dad works as a contractor. They are not importing labor to save money. Young people are going into office and tech jobs. You have to be skilled in building to work it, not like retail or McDonald's where they can hire just anyone. If young people have been avoiding trade jobs (and starting at the bottom until they learn the skills) over the last 30 years ... The results are as you see.
Hispanics are some of the best workers out there! You obviously haven’t been in the construction industry. Hispanics run circles around most black and white workers these days. I say most, not all.