The Myths of The Cost Per Square Foot for New Construction Homes
When it comes to building a new home, one of the most common questions buyers ask is, “What is the cost per square foot?” While it may seem like a simple metric, the truth is that cost per square foot is often one of the most misunderstood and misleading ways to evaluate new construction pricing.
At Ernest Homes, we help homebuyers understand the full picture—what actually drives new home pricing, why square-foot calculations fall short, and how to make the best decision for your budget, lifestyle, and long-term value.
Why Cost Per Square Foot Isn’t the Full Story
Although price per square foot is easy to calculate, it doesn’t reflect the true costs of building a quality home. Here are the key reasons why:
1. Construction Costs Vary Widely
The basic formula—total cost divided by heated square footage—ignores many real-world variables. Two homes can have identical square footage but very different costs based on:
- local labor availability
- material prices in the region
- structural complexity
- upgrades, finishes, and included features
National data from the National Association of Home Builders shows that material and labor fluctuations alone can cause wide cost variations—even within the same city.
2. Quality, Features & Included Design Options Matter
A home with upgraded cabinetry, luxury flooring, quartz countertops, or enhanced energy-efficient features will naturally cost more than one built with minimal builder-grade inclusions.
That’s why comparing homes based only on square footage often leads to inaccurate assumptions. What matters is what’s included, not just the number of square feet.
If you're curious about the difference, explore our floor plans and see the included features that come standard with Ernest Homes.
3. Land & Site Preparation Are Not Included in “Cost Per Sq Ft”
Square-foot pricing typically excludes:
- the cost of the homesite
- grading and land prep
- utilities, sewer, and water connections
- driveways, porches, patios, landscaping
These items significantly influence the total investment—but aren’t counted in the basic cost-per-square-foot formula.
4. Custom Architecture Changes Everything
Homes with unique rooflines, vaulted ceilings, structural beams, expanded porches, or added flex spaces require more labor and materials—creating a higher cost per square foot.
Open-concept layouts, oversized windows, and specialty elevations also change the equation. Standardized floor plans (like those offered in Ernest communities) help keep pricing consistent and transparent.
5. Economic Factors Play a Major Role
Construction prices are affected by broader economic conditions such as inflation, supply chain changes, and demand for skilled labor.
According to the U.S. Census Bureau’s construction data, these external factors can shift prices year-to-year—another reason square-foot pricing alone isn’t reliable.
A Better Way to Evaluate New Home Pricing
Instead of focusing on cost per square foot, consider:
- Included features & finishes
- Community amenities
- Overall home design & layout
- Energy efficiency & long-term savings
- Quality of construction
- Builder reputation & homeowner satisfaction
To get a real sense of pricing in Savannah, browse our move-in ready homes. Seeing actual pricing tied to specific features and locations provides far more clarity than relying on square-foot myths.
Why Buyers Choose Ernest Homes
As one of Savannah’s most trusted home builders, Ernest Homes provides:
- transparent, straightforward pricing
- a wide selection of thoughtfully designed floor plans
- high-quality materials and energy-efficient construction
- an award-winning Design Studio for personalization
- communities located near schools, conveniences, and military bases
Want to explore finishes, fixtures, and design options? Visit our Design Studio to see what today’s homebuyers love most.
Let’s Talk About Your Budget & Goals
If you’re exploring new construction in Savannah, Richmond Hill, or Pooler, we're here to help you understand your true options—not just a misleading square-foot estimate. Our team will walk you through homes, pricing, personalization, and financing so you can make the most informed decision.
Contact Ernest Homes to get personalized pricing guidance and learn more about building or buying your new home.
This article was updated to reflect current market trends, pricing considerations, and the latest guidance for today’s new construction homebuyers.
