CONSTRUCTION
The construction alone of a single level home is going to be more expensive than a comparable two story home. That may sound strange. “What about stairs?” Yes. There is going to be more lumber costs in a 2 story home; that’s for sure. Stairs, extra floor, double the height of walls, etc. Those are all expensive. Especially when lumber prices went through the roof this year, costs to build simply got more expensive to begin with. But the cost of a home is more than just lumber.
Lot Size: The first thing to consider is the lot size needed. A 2000 square foot single level home will occupy far more of a lot than a 2000 square foot two story home. Therefore, you can either put a single level home on the same size lot as a 2 story and suffer in terms of yard space, or, you’ll have to put a single level home on a larger lot than a similar sized 2 story home. If you go with a larger lot, your cost of the project is going higher, regardless of anything else. If you have the same sized lot, expect to have far less yard space, because all homes, regardless of whether they are one or two story, will have legal setbacks that don’t only allow the footprint of the home to be within x feet of a lot boundary.
Foundation: The next thing to think about in terms of expense is the foundation, often, especially in Las Vegas, poured with concrete. These slab foundations cost money. A lot of it. Concrete, like lumber, ebs and flows in terms of pricing, but concrete as a product, generally is an expensive item. And concrete is only used (for the most part), on the bottom level of a home. So again, take a 2000 sq ft home, and you’ll have essentially double the size of the footprint (foundation). That leads to essentially double the concrete. Don’t forget, a garage is also poured foundation, and that adds another large amount of concrete (figure 200 sq ft of footprint per garage space).
Roof: Another major expense of a home is the roof. Yes, a lot of it is lumber, but it’s also truss work, tile, etc that costs money. And if you have a one story home, you’ll have practically double the amount of roof footage as a similar sized 2 story home (think foundation, but on top).
Just with these three items alone to consider, the cost of a single level home is going to start becoming more expensive than a comparable two story home. Remember, whether it’s one level or two, most homes will only have one kitchen. Kitchens and bathrooms are some of the more expensive interior aspects of a home, and if we’re talking comparing a one level to a two level home, for this exercise, we’re of course assuming the same number of kitchens and bathrooms.
So, you are going to see MORE money put into a home that is a single story home. This is going to drive a builder to charge MORE money for a single story home, setting a base for a higher price down the road as well.
Resale
So now it’s time to SELL or BUY a resale property. You’re thinking about a single level or a 2 story, and are somewhat indifferent on what you get, as long as the size and characteristics fit your needs. Expect to pay considerably more for a single level home than a comparable sized 2 story property.
The reasons have to do with of course, the cost to build the products, as outlined above, but also, now you also have to deal with a supply and demand issue.
Because 2 story homes are cheaper to build, Builders end up building MORE of these than they do 2 story homes. That leads us to having less single level homes on the market, thus, creating higher demand, and further driving the price up.
Looking at the MLS (today is 7/27/2021), here are a few things I realized:
Of the 3251 Single Family Homes available on the market Today, only 1587 are single level (49%). This number actually feels high, but if you consider most homes built in the 1970’s and earlier were single level, this changes the stats.
Digging deeper, if you look at homes built in 2000 and newer, there are currently 1710 homes available for sale. Of these, only 618 are single story homes (36%).
In the last 45 Days, 4763 Houses have sold. The Median Price of these homes sold was $216.87 per foot. Of the homes that sold, 2317 of them were single story, and the Median Price of those homes sold was $234.27 per sq ft.
Conclusion
Between the extra cost to produce a single level home and the simply supply and demand for them, you will expect to pay a premium if you’re looking for a single story home over a comparable two story home. Conversely, if it’s time to sell, know that your home will probably sell for more than a similarly sized 2 story home in your area.
What do you prefer? A single story or 2+ story home?
