Different ways of building a home

different ways of building a home and cost difference

Hire a luxury builder and use a customized design, $250/ft2

Hire a custom builder, $200/ft2

Hire a builder and select one of their designs, $160/ft2

Owner as builder to manage the project, ideally $120/ft2

DIY, owner and friends do most the work (sweat equity, without pay, labor hours 1-2hr/ft2), $70/ft2

Numbers are for illustration only as actual cost varies. Land cost not included.



DIY home building

DIY build potentially could be lowest cost. Optimal design should target:

  • Low cost material
  • Low expertise requirement. For example, drywall no mudding but use quarter round and 1x4 boards to cover the seams, and use pre-fab bath enclosure to avoid laying tiles.
  • Low labor hours. Target 1hr/ft2
  • Minimize weather exposure. For example, build panels indoors to reduce onsite assembly time. With incremental construction each phase small, it may be feasible to cover the site with canopy to keep rain out.
  • Use economical machines and robots to increase productivity.

    Incremental home building

    incremental home building process

    Phase 0: buy land say 1600 ft2

    Phaes 1: build 200 ft2 home. Building coverage ratio 12.5%. Floor area ratio also 12.5%.

    Phaes 2: add 200 ft2 next to it, in this case as a garage without air conditioning. Building coverage ratio 25%. Floor area ratio is still 12.5% as a garage is not included in conditioned floor area.

    Phaes 3: add 400 ft2 2nd story, to 600 ft2 floor area. Building coverage ratio 25%. Floor area ratio 37.5%.

    Phaes 4: add 400 ft2 to the side, to 1000 ft2. Building coverage ratio 37.5%. Floor area ratio 62.5%.

    Phaes 4 alternative: add 400 ft2 3rd story, to 1000 ft2. Building coverage ratio 25%. Floor area ratio 62.5%.

    City of Houston code requires one parking space for 1000 ft2 single family dwelling unit when parking is required.

    Incremental construction reduces time and money required for each phase, making homeownership easier and earlier.



    More efficient use of space for lower cost

  • Multiple or flexible use
  • Bedroom used as living room or office during the day
  • Roof as garden
  • Above driveway or parkering either trees or building

    Time sharing building use

  • Dual use commercial buildihng, such as weekday 8 to 5 as office, rest of time as retail
  • Dual use office and residential, such as 10% residential, 10% office, 80% of the building as office weekday 8 to 5, rest of time residential
  • Dual use school and residential, such as 10% residential, 10% school, 80% of the building as school weekday 8 to 5, rest of time residential

    Flexible use of single family home

  • Used by a single family
  • Ground floor for light commercial like retail, restaurant, clinic etc. while 2nd and 3rd floor residential
  • As a duplex with a small unit like 200 ft2 and the other unit 800 ft2. If a single family bought the home with mortgage and paid 20% of the home's equity, the 200 ft2 unit is paid for so that if they defaulted on the mortgage they can still keep the 200 ft2 unit and no need to move out
  • As a duplex with two units of 500 ft2 each
  • As a co-housing or single-room-occupancy so that each person or couple owns a separate room of about 200 ft2
  • Used by a single family on week days while renting out rooms for weekends.

    Starter home community and courtyard style option

    starter home community layout

    25'x50' is close to the smallest size lot in the city of Houston. To maximize single family home width in 25' width lot, side setback may be 1' one side and 3' the other side for 21' width of building. 1hr fire resistance rating is required for the exterior wall as setback is less than 5'.




    starter home community layout with courtyard

    Shared courtyard among several homes allow big yard when land area for each home is small. 5' private backyard is an option with up to 4' see-through fence. Kids can play in the courtyard and adults in the homes or backyards can watch.



    Self-Help Homeownership grants and loans

  • The Self-Help Homeownership Opportunity Program (SHOP) awards grant funds to eligible national and regional nonprofit organizations and consortia to purchase home sites and develop or improve the infrastructure needed to set the stage for sweat equity and volunteer-based homeownership programs for low-income persons and families. Link here
  • USDA grants to qualified organizations to help them carry out local self-help housing construction projects. Link here
  • The Bootstrap Program is a self-help housing construction program that assists low-income households (Owner-Builders) purchase or refinance real property on which to build or repair housing by contributing the labor themselves. The maximum Bootstrap loan is $45,000 per household and 0% interest for a term of up to 30 years. Link here

    Texas high school students building tiny homes

  • Humble ISD
  • Spring ISD Wunsche high school
  • Northside ISD
  • Splendora High School
  • Temple high school
  • Comfort ISD
  • Joshua High School



    Help build more starter homes

  • High school Career & Technical Education, Architecture & Construction, especially programs building tiny homes
  • Non-profits helping construction education and mentoring, and organizing sweat equity programs. Examples like ACE Mentor Program Houston , Houston Habitat for Humanity
  • Construction company offering starter home construction within $120/ft2
  • Construction company offering mentoring and technical assistance for $10/ft2 if home owner provides material and most labor as sweat equity
  • Construction company offering hands-on summer camp or hands-on internship



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