As a real estate investor, you’ve probably considered doing something interesting. An apartment complex is a go-to option in 2025 property development. Since this is a new experience, you probably wonder how much this project will cost.
In this guide, we’ll break down the cost to build a 20 unit apartment complex. It will discover the cost per square foot, per unit, and every other cost factor included in the project. Let’s dive in and get a clear picture of your project!!
Cost Per Square Foot
The cost per square foot is a key quantity when constructing an apartment complex. In the U.S., it’s about $310 per square foot on average. But this can vary depending on where you construct and the type of building. In busy cities like New York or Los Angeles, the land cost is higher. This increases the overall construction cost.
Costs per square foot also depend on things like labor costs, material costs, the number of units, and building design. For example, a bedroom-unit apartment complex can cost less than a workplace apartment complex. Bedrooms require less equipment than offices. Thus, the cost per square foot can vary with many things.
Average Cost to Build a 20 Unit Apartment Complex
On average, a 20 unit apartment complex is based on 10,000 to 30,000 square feet. The size can vary according to the type of unit. For example,
- Studio apartments are typically 300 to 500 square feet.
- One-bedroom apartments are 600 to 800 square feet.
- Two-bedroom apartments are 900 to 1,200 square feet.
- Three-bedroom apartments are 1,200 to 1,700 square feet.
- Workplace apartments can take up to 1,500 to 30,000 square feet.
However, the average cost to build a 20 unit apartment complex in the US is $5 million to $10 million. Again, this range is just an average amount. It varies with different factors such as location, type of building, number of units, material used, and features included. You can also use an online construction cost calculator to calculate an estimated amount.
Building Cost Factors
Let’s study what factors are included in the construction that influence the total cost of building a 20 unit apartment complex.
Hard Costs
These are the costs you need to cover for actually building the apartment complex. They include buying or renting land, materials, and equipment. It also includes labor costs. Utilities, site preparation, and different production costs are also covered under hard costs.
Soft Costs
These are the prices related to things that aren’t involved within the actual building. They consist of building permits, licenses, and taxes. You’ll also pay for architectural designs, inspections, and engineering services. A typical cost can vary from $1,500 to $200,000 per acre. These finances help in making plans and getting ready for construction.
Finance Costs
These costs come from borrowing money to build the apartment complex. They consist of processing fees, interest, and finance charges. These expenses are paid to lenders, along with banks or other investors. They cover the rate of borrowing the money needed for the project.
Breaking Down All Cost Factors
Here is the breakdown of the major costs included in the construction. Keep in mind that these are just an average amount per square foot but the charges can increase later. It totally depends on your specific needs and requirements.
Cost Factor |
Average Cost Per Square Foot |
| Foundation Cost | $5.00 – $33.00 |
| Framing Cost | $11.00 – $30.00 |
| Drywall | $1.50 – $3.50 |
| Flooring | $4.00 – $15.00 |
| Plumbing | $4.00 – $5.00 |
| Interior Trim Cost | $4.00 – $10.00 |
| Siding Cost | $4.00 – $13.00 |
| Roof | $3.00 – $6.00 |
| Insulation | $1.00 – $4.50 |
| Electrical Wiring | $4.00 – $9.00 |
| HVAC System | $3.00 – $6.00 |
| Interior Painting | $1.00 – $3.00 |
| Countertop | $50.00 – $150.00 |
| Doors | $225 – $1,900 each |
| Windows | $450 – $1,500 each |
| Light Fixtures | $70 – $300 each |
| Toilets | $350 – $800 each |
| Cabinets | $150 – $500 |
| Appliances | $2,500 – $6,800 |
What would be an Average Timeline to Build a 20 Unit Apartment Complex?
Building a 20 unit apartment complex normally takes between 12 to 18 months. This time duration consists of everything from the initial planning and permits to the final construction. The precise duration can vary depending on numerous elements. For example, if the project is in a busy city, it would take longer due to higher demand for construction services and permits.
Several matters can affect how long it takes to construct. Weather conditions, construction delays, and layout changes can all increase the time. Also, the availability of workers and materials can play a big role. To get a better idea of how long your project will take, it’s vital to work with a contractor. They can provide a timeline based on your project’s particular needs and circumstances.
Conclusion
Building a 20 unit apartment complex involves numerous costs and elements. Understanding all cost factors in advance can help you plan effectively. You can get an estimated overall cost to build a 20 unit apartment complex, but remember that charges can vary based on location, layout, and other factors.
By working with a contractor, you can get a clear picture of your project. They can tell you the hard costs, soft costs, and the average timeline to complete your project. With careful planning, you can bring your dream apartment into reality!!
FAQs
Q1. How much does it cost to build a 10-unit apartment complex?
The cost to build a 10-unit apartment complex can range between $1 million to $3 million, depending on location, materials, and design.
Q2. What is the cost to build a 20-unit apartment complex per square foot?
The cost per square foot to build a 20-unit apartment complex typically falls between $120 to $250 per square foot, depending on factors like location and construction quality.
Q3. How much time will a 20-unit apartment complex take to build?
A 20-unit apartment complex can take 12 to 18 months to complete, considering planning, permits, and construction time.
