Why “Price Per Square Foot” Doesn’t Tell You the Real Cost of a Home

One of the first questions people ask when considering a modular home is, “What’s your price per square foot?”

It sounds like a simple, straightforward way to compare builders—but in reality, it’s one of the least helpful numbers in home construction. Any answer a builder gives is almost guaranteed to be misleading.

Asking for a home’s price per square foot is kind of like asking:

• “How much do your trucks cost per pound?”
• “How much does your pizza cost per ounce?”

Those questions feel like they should help you make a comparison, but they ignore the things that actually matter.

A half-ton work truck and a luxury pickup may weigh the same—but cost completely different amounts depending on what they include. A slice of pizza from a gas station and a wood-fired artisan pizza might weigh the same, too—but you’d never judge them on price-per-ounce alone.

Homes work exactly the same way.

Why Square Foot Pricing Doesn’t Work

Home prices vary based on dozens of factors that square footage alone can’t reveal:

• Structural engineering
• Cabinet quality
• Flooring materials
• Window and door type
• Roofing system
• Insulation and energy-efficiency levels
• Kitchen and bath finishes
• Ceiling height
• Architectural complexity

Two homes with the exact same square footage can have completely different costs depending on what they include.

A Real Example: Same Size, Very Different Price

Take a 1,800 sq. ft. home:

• Estimated construction cost:
  $243,000 → $135 per sq. ft.

• Add $36,000 in upgrades (upgrade kitchen cabinets, lengthen the house, taller ceilings, upgraded flooring, bigger windows etc):
  New price: $279,000 → $155 per sq. ft.

The home didn’t grow by a single inch, but the “price per square foot” jumped nearly 15% simply because the finishes changed.

Factor in things you can’t see — like 2×6 vs. 2×4 exterior walls, conditioned crawl spaces, or differences in drywall thickness — and a price-per-square-foot number becomes even more inconsistent.

This is why comparing builders by square foot alone is like comparing trucks by weight or pizza by ounces. You don’t get meaningful information.

How to Get Real, Useful Pricing for a Modular Home

The only accurate way to compare one builder to another is by getting an actual estimate based on:

• A real floor plan
• Real selections
• Real specifications
• Real finish costs

Anything else is guesswork.

The Truth About Allowances (And Why D&W Homes Is Different)

Many site-build contractors—and even many modular builders—use allowances throughout their estimates. An allowance is a placeholder number for something the builder isn’t pricing fully or doesn’t want to commit to yet.

Common allowances include:

• Flooring
• Cabinets
• Lighting
• Septic
• Site preparation
• Appliances

Allowances can make an estimate look cheap, but once construction starts, homeowners often discover that the real cost is thousands more.

This Is Where D&W Homes Stands Apart

We Offer Guaranteed Pricing

With D&W Homes, the price you approve is the price you pay for your home. No surprises. No hidden markups. No allowance games.

We Only Use Allowances When You Want Them

Many contractors and modular builders rely on allowances as a standard part of their pricing. At D&W Homes, we do things differently. We work hard to price your home accurately and completely up front, so you’re not left guessing.

We only add allowances when a homeowner specifically requests extra funds to be rolled into their loan for things they’re planning to handle on their own—like a porch, driveway, or landscaping. In those cases, an allowance becomes a tool to help you finance your project more conveniently, not a way to hide costs or make the estimate look artificially low.

When comparing builders, that transparency matters far more than any “cost per square foot” number.

Modular Homes vs. Outdoor Construction: Understanding the Price Differences

As you research pricing, it’s also important to understand how modular homes compare with traditional onsite construction:

• Built to strict state and local codes
  Modular homes undergo multiple inspections in a controlled factory environment.
• Stronger structural design
  Modules are engineered to withstand transportation and crane placement.
• Naturally energy-efficient
  Factory precision results in tighter seals, better insulation, and lower utility bills.
• Faster build times
  Factory construction takes roughly 4–12 weeks, with on-site completion in 60–90 days. Traditional builds in many areas, especially with labor shortages and weather factors, can stretch far longer.
• Lower interest during construction
  Shorter build times mean fewer months of construction loan interest, which can significantly lower your total cost—even though it never shows up in the “square foot” number.

Final Thoughts: A Better Way to Compare Builders

Price per square foot feels like an easy starting point, but it simply doesn’t tell you what a home really costs.

The better question is:

“What does this estimate include, and how accurate will it be when we’re ready to build?”

With D&W Homes, you get:

• Guaranteed pricing
• Clear, complete estimates
• No allowance gimmicks
• Transparency at every step
• A faster, more reliable building process

That’s how homebuyers can make confident, informed decisions—without financial surprises.