Labor costs are rising, up 13.8 percent from 2007 in these high-end markets, says Pollack, and that has many investors using “value engineering” to offset the costs.
“Project teams have put an emphasis on value engineering in a tighter economy and have come up with solutions such as using PEX piping in place of copper, or traditional fiber glass insulation versus spray foam due to the significant cost savings,” Pollack continued. “These choices render some functional differences, but keep the quality products high-end clientele desire, and deliver a cost savings in the 20-30 percent range.’
Going green in the construction project can also offer savings, thanks to tax incentive programs, so builders are often choosing such upgrades as geothermal heating systems.
The best bargain beach destinations on the high end? Cape Cod, Massachusetts at $650 per square foot, Lake Geneva, WI at $618 and Kiawah Island, SC at a mere $585 per square foot, nearly one third of the cost to build in Hawaii.
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