2012 has seen an increase in new construction, and breaking down the numbers associated with this construction will provide added clarity regarding its pricing. To begin this process, we will compare the cost of a given lot with that of the average house built in Rosemary Beach. The average size of a house in Rosemary Beach is roughly 3,000 square feet. Dividing the price of a lot by 3,000 square feet will therefore yield the average price per square foot of the lot.
The market values of Rosemary Beach lots vary considerably depending on their specific location. Over the past few months, most lot prices have tended to increase. This is likely due to a combination of limited inventory and increased lot demand.
The market value of a lot on the north side of 30A is about $275,000. By dividing this cost by the average home size of 3,000 square feet, one can assign a value of about $92 per square foot to these homes The average market value of a lot on the south side of 30A is around $500,000. Dividing this number by 3,000 square feet produces a price per square foot of $167. The average market value of a Gulf view lot in Rosemary Beach is approximately $750,000. Dividing this number by 3,000 square feet produces a price per square foot of $250. No Rosemary Beach lots are currently available directly on the Gulf.
Of course, there are other factors that should be included when determining the price of a given lot; for example, potential penalties for build out time must be taken into account. However, this article will disregard such factors for the purpose of simplicity.
In addition to the price of purchasing a lot, it typically costs between $250 to $400 per square foot to construct a home in Rosemary Beach. This broad range reflects the varying implementations of added upgrades and special features in Rosemary Beach's stunning homes. Costs can occasionally exceed $400 per square foot, but for the purposes of this explanation an average cost of $300 per square foot will be assumed. The following demonstrates the total average cost of constructing a home in Rosemary Beach's various regions.
- House on the north side of 30A: $92 + $300 = $392 per square foot to build
- House on the south side of 30A: $167 + $300 = $467 per square foot to build
- House with a direct gulf view: $250 + $300 = $550 per square foot to build
Since the beginning of 2012, Rosemary Beach has experienced a significant increase in development and construction. So far, six main houses have been completed in the area, while twelve main houses and ten carriage houses are currently in progress. Three of these homes, which are located on the north side of 30A, are active in the MLS and are being offered at a price of $505 to $537 per square foot. Additionally, one under-construction home on the north side of 30A has already sold for $540 per square foot. The rest of the homes built in 2012 were personal projects.
In the past twelve months, a total of twenty Rosemary Beach homes have been sold on the north side of 30A. These homes were sold at an average price of $383 per square foot.
- House on the north side of 30A: $392 per square foot to build / Resale: $383 per square foot
During this time period, eleven homes on the south side of 30A in Rosemary Beach were sold at an average price of $484 per square foot. Four Gulf View Rosemary Beach homes were sold at an average cost of $804 per square foot. Finally, in the last twelve months, three Gulf-front homes were sold at an average price of $1,156 per square foot.
- House on the south side of 30A: $467 per square foot to build / Resale: $484 per square foot
- House with a direct gulf view: $550 per square foot to build / Resale: $804 per square foot
As demonstrated by these price comparisons, the cost of building Rosemary Beach real estate has become roughly equal to the price of resale. This has contributed to 2012's increased amount of home construction.
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