CBS vs. Wood Frame Homes in Jupiter Farms: Does Construction Type Affect Home Value?
Comparing CBS (Concrete Block) and Wood Frame Homes in Jupiter Farms: Does Construction Material Affect Home Value?
This blog idea originally stemmed from a broad observation based on the history of housing development in South Florida. The pattern is quite evident if you trace it from Miami to Fort Lauderdale and beyond. Initially, vacant lands are purchased, and new structures are erected. As available land dwindles, attention shifts to wood-framed homes for various reasons, including lower demolition costs, which make them more appealing to builders. Eventually, even concrete homes with cast iron pipes become tear-downs. As we progress from vacant land to wood frame to aged CBS (Concrete Block Structure), both acquisition and rebuild costs increase, making it more expensive to build and buy.
Are you intrigued yet? Let's dive into some data.
I examined sales in Jupiter Farms over the past 180 days as of October 2023, totaling 75 sales. My thesis was that, considering all factors, wood-framed homes would sell for less than CBS construction homes. This is a critical consideration for both buyers and sellers when valuing properties. So, what did the data reveal?
Out of the 75 sales, 24 were wood-framed homes, and 42 were CBS constructed homes. I excluded 9 sales due to mixed construction materials.
For the 24 Wood Frame homes:
Average Price: $817,312
Median Price: $669,500
Average Price per Square Foot: $348.60
For the 42 CBS Construction homes:
Average Price: $1.18 million
Median Price: $900,000
Average Price per Square Foot: $556.75
Percentage Difference per Square Foot: 46%
These statistics do not imply that wood-framed homes are inferior or unsuitable. Instead, they provide a broader perspective. The data suggests that wood-framed homes are generally more affordable to acquire than concrete block homes. However, it's important to note that maintaining and insuring a wood-framed home can be costlier, especially regarding hazard and windstorm insurance, as concrete is less prone to fire or hurricane damage.
For sellers, this means accounting for construction material when valuing your home, especially if neighboring homes are constructed differently.
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