An apartment typically refers to a suite of rooms forming one residence, in a building containing many similarly structured units. A multifamily building is a rental apartment building where the entire building (and all of the apartments inside it) is under the same ownership. These are more commonly just called “apartment buildings.”
Land Costs (10-20%)
Land costs are the first big expenses in multifamily construction. As one can imagine, purchasing land in rural areas is cheaper compared to urban, infill communities. Many factors come into play, and this development cost may include demolition and clearing.
Hard Costs (50-70%)
The hard development cost of multifamily construction includes the expenses for physically building the multifamily housing: materials, safety equipment and systems, labor costs, engineering services, as well as contractors’ and subcontractors’ bids.
Soft Costs (20-30%)
This construction cost covers the expenses that go into the work process behind the scenes, such as contracts and legal fees, city permit fees, city zoning, interior design, architects’ fees, and other similar expenditures needed to complete the project.