REVIEWED RESUB1 BLD2022-0913+75% form +8.25.2022_8.54.34_AM+3071894RES U B
Aug 25 2022
CITY OF EDMONDS
DEVELOPMENT SERVICES
DEPARTMENT
pl r U.1y
REVIEWED -u-
BY
CITY OF EDMONDS
BUILDING DEPARTMENT
BLD2022-0913
Permit # J3 L ? 20 2-2 CO3 1 3
Address: ��o 3- 2,32-�:Lt ST 5 W LVA4D ObS ?,fb zt�-
Home Owner: 69{-Pkm �.JEW#J'FiEg G rfff7?"
Contractor; 91 cC.arJ �A cyTl � �!� % UJ A
This form may be used to help establish the percentage of demolition work performed to an existing
home in the course of a remodel. Once demolition has met or exceeded 75% of the value of the existing
home's replacement cost, the structure will be required to be rebuilt to the standards of new
construction.
Replacement cost of existing home $ ZZ7 , dOO Ji Z-D Z3 A-i55ev566e !!� D U �T r
f' •
/'n KIQ_rD11(`TI(lnl (YICTC Demo Notes NAHB
VV1Component vPercentage Remain $ Value Condition Lin Ft % replace Total
to Remain demo / total Total replace cost
Foundation
100.0
25402
good
none
11.30
25402
Floor Framing
100.0
10251
good
None
4.56
10251
Wall framing
74.7
7657
good
78 / 308
4.56
10251
Roof Framing
22.2
2272
good
1455 / 1869
4.56
10251
Floor Insulation
100.0
1259
ave
None
0.56
1259
Wall Insulation
68.5
862
ave
41 / 130
0.56
1259
Roof Insulation
55.0
692
ave
656 / 1455
0.56
1259
Siding
90.0
13151
good
20 / 200
6.50
14612
Roofing
22.2
1697
good
1455 / 1869
3.40
7643
Windows
90.5
4069
good
16 / 169
2.00
4496
Doors
49.0
2203
good
29 / 56
2.00
4496
Plumbing
58.0
8345
good
6.40
14387
Electrical
70.0
9284
good
5.90
13263
HVAC
60.0
6474
good
4.80
10790
Drywall
37.7
3051
good
278 / 446
3.60
8093
Cabinets
78.8
8148
new
7 / 33
4.60
10341
Deck
98.9
2668
new
51451
1.20
2698
Flooring
54.0
4856
good
676 / 1472
4.00
8992
Fireplace
1 100.0
1 1349
1 good
None
0.60
1349
Total
113689
Percentage of remaining value to replacement cost: 70.57%
Owner
ECDC: 19.00.045 Reconstruction of damaged buildings
/1.00 to IvZ1I
-11
Date � Z Z'Z
For any structure that is destroyed, damaged or demolished in an amount equal to 75 percent or more of its
replacement cost at the time of destruction, the reconstruction shall be considered to be under the category of "new"
construction. Determination of replacement costs and the level of destruction shall be made by the building official
and shall be appealable as a Type II staff decision under the provisions of Chapter 20.06 ECDC. The "new"
construction will be subject to all applicable requirements of the Edmonds Community Development Code for a new
building, including but not limited to zoning, utilities and site -related features; provided, that Chapter 17.40 ECDC also
applies to certain requirements for nonconforming buildings and uses. [Ord. 4151 § 3 (Att. A), 2019].
.,.,.,.,.,.,,.,.,.,.,.,
REVIEWED
BY
CITY OF EDMONDS
BUILDING DEPARTMENT!
Cost of Constructing a Home
Special Studies January 2, 2020
By Carmel Ford
NAHB Economics and Housing Policy Group
Introduction
Over the years, NAHB has periodically conducted "construction cost surveys" to collect information from builders on the
various components that go into the sales price of a typical single-family home. NAHB's most recent Construction Cost
survey (conducted in the fall of 2019) shows that, on average, 61.1 percent of the sales price goes to construction costs and
18.5 percent to finished lot costs. On average, builder profit is 9.1 percent of the sales price.
Of the major stages of construction, interior finishes, at 25.4 percent, accounts for the largest share of construction costs,
followed by framing at 17.4 percent. These percentages cover all costs paid by a builder, including labor, materials, and
the cost of hiring subcontractors.
The following sections describe the methodology of the survey and discuss the results in more detail.
Methodology
NAHB's 2019 Construction Cost survey was conducted by emailing a questionnaire to a representative sample of 6,516
home builders. The sample was stratified by the size of the builder (based on the number of 2018 single-family starts) and
by region of the country (the sample being proportional to housing starts in each of the four principal Census regions).
Over the years, NAHB has modified the survey and its methodology. In 2009, the survey methodology changed to provide
a better, more representative sample of single-family construction across the country. In 2013, NAHB developed a different
construction cost breakdown that more closely resembles the steps that builders take when building a home. Prior to 2013,
the breakdown had 29 sections. In 2013, we created eight subcategories for each of the major stages of construction, with
a total of 36 sections grouped under the appropriate construction stage. The new format simplified data collection, greatly
reducing the number of follow-up calls needed to clarify and verify builder responses.
Respondents were asked to provide information about the typical single-family home built by their firms during 2019.
Usable responses were received from 49 builders. Table 1 shows the detailed results of the 2019 Construction Cost survey.
Average Lot Size; 22,094
A. Finished Lot Cost (including financing cost)
$89,540
18.5%
B. Total Construction Cost
$296.652
61.1%
C. Financin£? Cost
$8360
1.7%
D, Overhead and General Expenses
$23.683
4.9%
E. MarketinL, Cost
$4.895
1.0%
F. Sales Commission
$18.105
3.7%
G. Profit
$44.092
9.1 %
T tal Sales Priep
$485.128
100.0°
i i aQ
I. Sit/Work of A to E)
$18,323
6.2%
A. BFees
$5,086
1.7%
B. I
$3,865
1.3%
C. WFees Inspections
$4.319
1.5%
D. A�ineerina$4.335
1.5%
E.0
$719
0.2%
II. Foundations (sum of F to G)
$34,850
11.8%
F. Excavation, Foundation, Concrete, Retainine wails, and Backfill
$33.511
11.3%
G.;Other
$1338
0.5%
llI. Framing (sum of H to L)
$51.589
17.4%
H. Framina (including roof)
$40.612
13.7%
I. T/dsses (if not included above)
$6,276
2.1 %
J. Sheathing (if not included above)
$3.216
1.1%
K. faeheral Metal. Steel
$954
0.3%
L. Qtl'ier
$530
0.2%
IV. Exterior Finishes (sum of M to P)
$41.690
14.1%
M. Exterior Wall Finish
$19.319
6.5%
N. Roofine
$9.954
3.4%
O. Windows and Doors (including earap-e door)
$11,747
4.0%
P. Other
$671
0.2%
V. Maior Svstems Roueh-ins (sum of O to T)
$43,668
14.7%
0. Plumbine (except fixtures)
$14,745
5.0%
R. Electrical (except fixtures)
$13,798
4.7%
S, HVAC
$14,111
4.8%
T. QtKer
$1.013
0.3%
VI. Interior Finishes (sum of U to AE)
$75.259
25.4%
U. Insulation
$5.184
1.7%
V. Drvwall
$10,634
3.6%
W. Interior Trims, Doors, and Mirrors
$10,605
3.6%
X. PzNinQ
$8,254
2.9%
Y. Liehtina
$3.437
1.2%
Z. Cabinets, Countertoos
$13,540
4.6%
AA. ,�,Khliances
$4,710
1.6%
AB. Floorine
$11.998
4.0%
AC. Plumbina Fixtures
$4.108
1.4%
AD. Fireplace
$1.867
0.6%
AE. Qkher
$923
0.3%
VII. Final Steps (sum of AF to AJ)
$20.116
6.8%
AF. Lo4scapina
$6.506
2.2%
AG. Outdoor Structures (deck, patio, porches)
$3.547
1.2%
AH. Dri wav
$6,674
$2,988
2.2%
1.0%
AI. C n Up
AJ. ther
$402
0.1 %
VIII. Other
$11.156
3.8%
Total
1$296,652
1 100.0%
Home and Lot Size
The average single-family home size in the 2019 NAHB Construction Cost Survey is 2,594 square feet of finished floor
space, the smallest square footage since 2011. Historically, average square footage in the NAHB survey has tended to move
in the same direction as in the Census Bureau's series with a lag, and with wider fluctuations, as you would expect from the
smaller sample size.
The average home size dropped from 2,716 square feet in 2009 to 2,311 square feet in 2011, as demand eroded after the
Great Recession. As the economy recovered, it rose steadily and peaked at 2,802 square feet in 2015. Since then, the average
square footage has trended downward, dropping to 2,776 in 2017 and to 2,594 in 2019 (Graph 1). Data from the Census
Bureau corroborates this trend: the average size of all new homes peaked in 2015 at 2,740 square feet, but has
declined every year since then The smaller square footage in recent years is evidence that builders are shifting toward the
production of more entry-level homes to meet demand for more affordable homes.
Graph 1. SIZE OF SINGLE-FAMILY HOMES
(Square Footage)
2,900
2,802
2.800 2.711 2740 w 2,776
2,700 0 2,716 2,646 2,677
2,660
2.600 2,531 2,568 ■ 2,607 2.62� 594
2.500 2.528
2,40{)
2.402 2,408
2,300 ■ 2,311
2,200
2.100
2,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-s--Characteristics of New Single-1`anilly I tomes Completed -411-NAI IB Survey
The average lot size in the 2019 NAHB Construction Cost Survey is 22,094 square feet, or about a half -acre (1 acre is
equivalent to 43,560 square feet). This is the highest average lot size recorded in the survey's history. The average lot size
was in the territory of 20,000 to 22,000 square feet in 2009 and 2011, but dropped to 14,359 sq. ft. in 2013. It rebounded to
20,129 sq. ft. in 2015, but dropped again to 11,186 sq. ft. in 2017, the smallest lot size since the inception of the survey.
In general, lot size in the NAHB survey has tended to move in the same direction as the Census series, but again with more
volatility from year to year (Graph 2). The Census data show a downward trend in lot size between 2009 and 2013, dropping
from an average of 18,871 sq. ft. to a low of 15,167 sq. ft. in 2013. It rebounds to 16,381 sq. ft. in 2015, but falls again to
another low of 14,539 sq. ft in 2018.
The NAHB survey shows a significant increase in lot size in 2019, which deviates from the downward trend exhibited by
the Census data. Again, this may reflect the Construction Cost survey's small sample size.
Graph 2. LOT SIZE OF SINGLE-FAMILY HOMES
(Square Footage)
22,000 0 21,879 W2,094
20,000 ■ 20,614 ■ 20,129
8,871
18,000 17,863
16,386 16,356 16,381
16,000 15,167 15,641
16,1 S9 5.,470
14,000
■ 14,359 \� 14,539
12,000
11,186
10,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
-;—Characteristics of New Single -Family Homes Completed—m--NAHB Survey
Sales Price
The average single-family home sales price in the 2019 NAHB Construction Cost Survey is $485,128, the highest average
sales price (not adjusted for inflation) in the survey's history. The Census Bureau's series shows the average price for new
single-family homes sold increasing steadily after the Great Recession, going from $267,900 in 2011 to $384,900 in
2017, and leveling off at $385,000 in 2018 (Graph 3). It is important to note that home price appreciation slowed in 2018
as higher mortgage interest rates softened demand for housing. 11rice_gr wth reaccelerated in 2019, however, as
mortgage rates dropped to record lows and the labor market continued to expand.
Compared to the Census series, the NAHB survey data show a similar upward trend, but with bigger jumps in the average
price. Again, the larger fluctuations in the NAHB surveys are most likely due to the smaller sample size. The relatively
simple geographic stratification (four Census regions) may also be a factor.
Graph 3. SALES PRICE OF SINGLE-FAMILY HOMES
S500.000
5450,000
■ S377,624
5350.000
5300.000 ■ S310,619
$270,900
$250,000 $272,900 $267,900
S200.000
■ $468,318
■ $399,532
$347,700 $360,
$352,700
$324,500
$292,200
$485,128
■
■ S427,892
$384,900 $385,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
- -Characteristics of New Single -Family 1-lomes Sole! ■ NA1113 Survey
Sales Price Breakdown
A key feature of the NAHB survey is that it asks builders to break down the sales price of their homes into seven categories:
finished lot cost; total construction cost; financing cost; overhead and general expenses; marketing costs; sales commission;
and profit. Table 2 contains historical information on the sales price breakdown of a single-family home. It is important to
remind readers to use caution when comparing data across years in Table 2, as trends may be affected by the survey's sample
size limitations and the fact that a different set of builders responds to the survey each time.
On average in the 2019 NAHB survey, 61.1 percent of the final house price was attributable to construction costs, 18.5
percent to the cost of the finished lot, 4.9 percent to overhead and general expenses, 3.7 percent to sales commissions, 1.7
percent to financing costs, 1.0 percent to marketing costs, leaving 9.1 percent for profit (prior to taxes).
As a share of the average sales price, construction costs rose significantly, going from 55.6 percent in 2017 to 61.1 percent
in 2019. At the same time, the finished lot cost share decreased from 21.5 percent to 18.5 percent, and the average profit
margin fell from 10.7 percent to 9.1 percent.
Table 2. SINGLE-FAMII_,Y 110MES SALES PRICE BREAKDOWN HISTORY
1. Finished Lot Cost
23.6%
23.5%
2. Total Construction Cost
54.8%
50.8%
3. Financing Cost
1.9%
2.1%
4.Overhead and General Expenses
5.7%
5.5%
5. Marketing Cost
1.4%
2.4%
6. Sales Commission
3.4%
3.7%
7. Profit
9.2%
12.0%
8. Total Sales Price ($)
$226,680
$298,412
Source: NA11B Construction Cost Surveys, 1998-2019
26.0%
24.5%
20.3%
21.7%
18.6%
18.2%
21.5%
18.5%
51.7%
48.1%
58.9%
59.3%
61.7%
61.8%
55.61/o
61.1%
1.8%
2.4%
1.7%
2.1%
1.4%
1.3%
1.80/0
1.7%
5.8%
7.0%
5.4%
5.2%
4.3%
5.6%
5.1%
4.9%
1.9%
2.5%
1.4%
1.5%
1.1%
0.8%
1.2%
1.0"%
3.0%
4.3%
3.4%
3.3%
3.6%
3.2%
4.1%
3.7%
9.8%
11.2%
8.9%
6.8%
9.3%
9.01/0
10.7%
9.1%
$373,349
$454,906
$377,624
$310,619
$399,532
$468,318
$427,892
$485,128
Construction Costs
The average construction cost of a typical single-family home in the 2019 survey is $296,652 (Table 3), or about $114 per
square foot. The cost of construction per square foot was $80 in 2011, $95 in 2013, $103 in 2015, and $86 in 2017.
Of the 8 major stages of construction, interior finishes, at 25.4 percent, accounts for the largest share of construction costs,
followed by framing (17.4 percent), major system rough -ins (14.7 percent), exterior finishes (14.1 percent), foundations
(11.8 percent), final steps (6.8 percent), site work (6.2 percent), and other costs (3.8 percent) (See Table 3 for a full
breakdown).
Each category in Table 3 includes all the costs paid by a builder that go into a particular item, including labor costs paid
directly by the general contractor, the cost of hiring subcontractors, and the cost of materials, however they are purchased.
Among the major stages, the share of construction costs that go to interior finishes shifted the most between 2017 and 2019,
falling from 28.6 percent to 25.4 percent. Meanwhile, foundations and major system rough -ins had the largest percentage
point increases from 2017 to 2019, rising 1.0 point to 11.8 percent and 0.9 points to 14.7 percent, respectively.
Rising foundation costs may reflect increases in the cost of read- mix concrete seen throughout 2019.
The cost of framing, on the other hand, remained essentially unchanged between 2017 (17.3 percent) and 2019
(17.4 percent). It is important to point out that softwood lumber costs stabilized in 2019, after rising significantly in 2018.
Of the detailed items in the NAHB survey, framing and trusses remain the largest share of construction costs. Together,
they account for 15.8 percent of 2019's construction costs, slightly down from the 16.8 percent they represented in 2017. The
share of construction costs going to impact fees rose slightly from 0.9 percent in 2017 to 1.3 percent in 2019.
An Fyconhousin .org post, which highlights the top challenges for builders in 2019, shows that a significant share of
builders (61 percent) continued to report impact/hook-up/inspection fees remain one of their top problems.
Table 3. SINGLE-FAMILY CONSTRUCTION COST BREAKDOWN HISTORY
I. Site Work (sum of Ato E)
6.8%
5.6%
6.7%
6.2%
A. Building Permit Fees
0.9%
1.3%
0.8%
1.7%
1.9%
1.7%
1.5%
1.2%
1.7%
1.7%
B.Impact Fee
1.0%
1.6%
1.1%
1.4%
1.4%
1.5%
1.3%
0.6%
0.9%
1.3%
C. Water & Sewer Fees Inspections
1.0%
1.4%
1.2%
1.6%
1.7%
1.6%
1.8%
1.4%
2.0%
1.5%
D. Architecture, Engineering
1.5%
1.6%
1.4%
1.5%
E.Other
0.7%
0.7%
0.7%
0.2%
H. Foundations (sum of F to G)
9.5%
11.6%
10.8%
11.7%
F. Excavation, Foundation, Concrete,
9.6%
6.9%
9.9%
7.0%
7.1 %
9.3%
9.3%
11.3%
10.7%
11.3%
Retaining walls, and Backfill
G.Other
0.2%
0.3%
0.1%
0.5%
III. Framing (sum of11 to L)
19.1%
18.0%
17.3%
17.4%
H. Framing (including roof)
20.2%
18.4%
21.3%
15.8%
15.6%
13.5%
14.8%
15.4%
15.0%
13.7%
I. Trusses (if not included above)
2.2%
1.3%
1.6%
2.1 %
J. Sheathing (if not included above)
NA
0.9%
1.4%
1.6%
1.7%
1.2%
0.9%
0.4%
0.3%
1.1 %
K. General Metal, Steel
1.1 %
0.8%
0.3%
0.8%
0.7%
0.5%
0.7%
0.4%
0.3%
0.3%
L.Other
0.5%
0.3%
0.1%
0.2%
IV, Exterior Finishes (sum of M to P)
14.4%
15.0%
13.9%
14.1%
M. Exterior Wall Finish
6.8%
7.2%
6.5%
6.5%
N. Roofing
2.6%
2.6%
2.2%
3.2%
3.8%
2.9%
3.2%
3.5%
3.3%
3.4%
0. Windows and Doors (including garage door)
4.1 %
4.2%
3.9%
4.0%
P.Other
I
0.2%
0.2%
0.3%
0.2%
V. Major Systems Rough -ins (sum of Q to
1)
13.4%
13.1%
13.8%
14.7%
Q. Plumbing (except fixtures)
5.9%
5.4%
5.3%
5.4%
5.3%
6.0%
4.8%
4.3%
4.6%
5.0%
R. Electrical (except fixtures)
3.8%
3.3%
3.4%
3.9%
3.7%
4.4%
4.0%
4.2%
4.2%
4.7%
S. HVAC
4.1%
4.2%
3.7%
3.9%
4.0%
4.8%
4.5%
4.4%
4.7%
4.8%
T.Other
0.1%
0.3%
0.2%
0.3%
VI. Interior Finishes (sum of to AE)
29.3%
29.6%
28.6%
25.4%
U.Imulation
1.4%
1.6%
1.4%
1.6%
1.5%
1.8%
1.9%
2.2%
2.2%
1.7%
V. Drywall
5.5%
5.3%
4.9%
5.1 %
5.1 %
4.4%
3.8%
4.1 %
4.4%
3.6%
W. Interior Trims, Doors, and Mirrors
4.3%
4.3%
4.6%
3.6%
X. Painting
3.8%
3.6%
3.6%
3.4%
3.4%
3.3%
3.4%
3.1%
3.0%
2.8%
Y. Lighting
1.0%
0.8%
0.9%
1.0%
1.1%
1.2%
1.2%
1.2%
1.3%
1.2%
Z. Cabinets, Countertops
5.0%
4.3%
6.6%
5.7%
5.6%
5.6%
5.2%
5.5%
5.0%
4.6%
AA. Appliances
1.3%
1.2%
1.3%
1.7%
1.6%
2.0%
1.7%
1.5%
1.5%
1.6%
AB. Flooring
4.9%
4.3%
4.2%
5.0%
5.1 %
4.5%
5.0%
4.6%
4.3%
4.0%
AC. Plumbing Fixtures
1.7%
1.5%
1.3%
1.4%
AD, Fireplace
0.8%
1.0%
0.6%
0.6%
AE. Other
0.2%
0.5%
0.4%
0.3%
V1I. Final Steps (sum of AF to AJ)
6.6%
6.8%
7.0%
6.8%
AF. Landscaping
1.8%
2.5%
2.6%
2.8%
3.2%
3.5%
2.3%
2.1%
2.5%
2.2%
AG. Outdoor Structures (deck, patio,
0.7%
0.7%
1.0%
0.7%
0.9%
1.0%
1.2%
1.5%
1.3%
1.2%
porches)
AH. Driveway
1.5%
1.6%
1.3%
1.4%
1.4%
1.5%
1.5%
2.2%
1.9%
2.2%
Al. Clean Up
0.9%
0.7%
1.1 %
1.0%
AJ. Other
0.7%
0.3%
0.3%
0.1%
VIU. Other
0.9%
0.5%
2.0%
3.8%
Source: NAHB Construction Cost Surveys, 1998-2019
Caveats
These results are national averages; the survey sample is not large enough for a geographic breakdown. Building practices,
the cost of labor, the cost of land, and to some extent the cost of materials can vary from place to place and depend on the
nature of the particular home being built. Although the survey can provide a broad idea of construction costs for the average
new single-family home, it is not a perfect tool for estimating costs for a particular house. Companies that provide
more specific cost estimating, usually for a fee, include RSMeans (littp:;:.'rsmeans.reedconstructiondata.com/ ) and
Marshall &/Swift (http ://ww«,:......................rsllsw;ift.coni% ).
......... ...................
It is also important to note that because the NAHB Construction Cost Survey has a small sample size and does not control
for differences in the types of homes submitted in builders' responses, users should exhibit caution when comparing
results across multiple years. For a more accurate time -series, users should refer to the Census Bureau's Survey of
Construction, which is based on a much larger sample size and controls for home type.