Size can make a difference in the PPSF. For instance, let’s compare a 2,500 sq. ft. home to a similarly-finished home that is 2,800 sq. ft. in the same location. The larger home has the same kitchen and baths as the smaller home, but it also has a 17’x18’ play room for the kids. The larger home will be slightly more expensive, but it will typically be less on a PPSF basis than the smaller home.
Let’s take it a step further and compare two homes that are both 2,500sf living area and identical in every aspect except that one has a 4-car garage and the other has a 2-car garage. Since the extra garage space adds additional construction cost but doesn’t add any AC space, the home with the bigger garage will not only be slightly more expensive, it will have a higher PPSF.
I’ll give another example with more extreme differences. Let’s assume a 2,000 sq. ft. home with quality construction and finishes and compare that to a 4,000 square foot home also with comparable quality construction and finishes. Even though the larger home may have another bath or two and a bigger kitchen, it will typically be less on a PPSF basis but more expensive overall.
The bottom line is that the PPSF is just an average. Not every square foot in a home costs the same to construct. Further, many costs associated with new construction can be the same or similar for both homes in this example. If both homes are in the same area and require drilling a water well, the cost of the well will apply equally (for the most part) to both homes. Hopefully by now you know where this is going. A $12,000 water well adds $6/sf to the 2,000sf home, but it only adds $3/sf to the 4,000sf home.