In my market (Portland, OR), the cost for new construction seems to be in the range of $250-350/square foot. A buildable lot in a decent neighborhood costs $300k-ish (if you can find one).
Assuming you’re building a family sized building of 2k+ square feet, building costs definitely exceed land costs.
Anecdotally, all the new construction in my neighborhood is top of market - builders are selling large houses at $1.3M+ when a typical existing house sells for more like $700k. Smaller homes would sell faster, but the economics seem to only pencil out for larger/higher end.
Assuming you’re building a family sized building of 2k+ square feet, building costs definitely exceed land costs.
Anecdotally, all the new construction in my neighborhood is top of market - builders are selling large houses at $1.3M+ when a typical existing house sells for more like $700k. Smaller homes would sell faster, but the economics seem to only pencil out for larger/higher end.