If you are planning to build an apartment complex in Texas, you must understand how the cost of the construction works in the region. In Texas, there are many factors which impact the overall cost of the construction projects specially when it comes to the complex buildings and the large scale construction projects
Normally, the average cost to build an apartment complex is about $180,000 to $500,000+ per apartment limit. However, there are factors which can increase or decrease the overall cost of the construction project. On the other hand, the cost per square foot is $140 to $350 spending on supply and demand of the materials, labor and logistics.
I cannot tell you the factors which impact the cost because I do not have relevant experience but I do as I have been working in the field for 20+ years. So, come with me to explore the cost to build an apartment complex in Texas.
Understanding the Construction Cost Mechanism in Texas
The cost of the construction depends on the supply and demand fluctuations, prices, hypes and the economic conditions. Additionally, the area in which you are working also matters because some cities are far from the main metropolitan cities like Austin, Houston or Dallas. Therefore, the logistics costs increase in such conditions.
Furthermore, the cost of the construction of apartment units in Texas becomes unpredictable due to the high competition. General contractors and subcontractors file bids with low profit margins which make the competition fierce. That’s why winning a bid with a maximum profit margin becomes difficult for the apartment complex buildings.
Apartment Construction Costs by Project Size
The total cost of the construction projects largely depends on the project size. No doubt, large scale projects require more budget compared to the smaller ones. Here is a breakdown of the apartment complex based on their sizes.
| Number of Units | Estimated Project Size | Estimated Construction Cost |
| 20 Units | 20,000–30,000 Sq. Ft. | $3.5M–$8M |
| 50 Units | 50,000–75,000 Sq. Ft. | $9M–$20M |
| 100 Units | 100,000–150,000 Sq. Ft. | $18M–$40M |
| 200 Units | 200,000–300,000 Sq. Ft. | $35M–$80M+ |
What Determines the Cost Per Unit?
The cost per apartment unit is not based only on size but on preparation, labor rates, and material cost. Several shared construction costs are distributed across the entire development. This includes foundations, structural framing, roofing systems, corridors and stairways, elevators, fire protection system and, parking areas, utility infrastructure, and amenity spaces.
A 900 square foot apartment may therefore have a higher total cost allocation than simply multiplying its square footage by a construction rate.
What Affects the Cost of Building an Apartment Complex in Texas?
Location: This is the fundamental factor that impacts the overall cost of the apartment complex across Texas. In this state, the cost of construction varies based on cities such as Austin, Dallas, Fort Worth, and Houston.
Number of Floors: The height of the building has a major effect on construction costs. Low-rise apartments require a simpler structural system; mid-rise apartments require elevators and structural engineering. So, as the building becomes taller, the cost per square foot generally increases.
Construction Type: If there are structural differences, the cost can vary. The common apartment construction methods include wood frame construction, steel framing, concrete structure, podium construction, and hybrid structural systems.
Parking Requirements: Parking can represent a major expense for apartment developers. Surface parking is generally more economical than structures, parking garages, underground parking, and multi-level parking facilities.
How Much Does It Cost to Build a 100-Unit Apartment Complex in Texas?
A 100-unit apartment development can cost approximately $18 million to $25 million. But still, terms and conditions apply. I have broken down the costs of garden-style development, standard multifamily complex, mid-rise development, and luxury apartment complex in a table; see below:
| Apartment Type | Estimated Construction Cost |
| Garden-Style Development | $18M–$25M |
| Standard Multifamily Complex | $22M–$32M |
| Mid-Rise Development | $30M–$45M |
| Luxury Apartment Complex | $40M–$60M+ |
Additional Costs Developers Should Consider
Construction costs are only one part of the total development budget. There are a number of factors that influence the cost to developers. Additional expenses may include:
- Land acquisition
- Architectural and engineering fees
- Surveys
- Geotechnical studies
- Permits and approvals
- Utility connections
- Financing costs
- Insurance
- Landscaping
- Off-site improvements
How to Estimate Apartment Construction Costs Accurately
If you want to estimate but are unable to consider all the factors, you need to partner with an experienced company that provides highly accurate estimates for apartment complexes. Texas Estimate is a professional services provider that has been providing solutions for more than 20 years. We have completed hundreds of apartment construction cost estimates, partnering with general contractors, developers, as well as architects and subcontractors. Using our estimates, you can increase the bid hit rates to 92% and secure maximum profit margins.
Give us a call to get a free quotation.
Mostly Asked Questions
How much does it cost to build an apartment complex in Texas?
Apartment construction in Texas generally costs $140 to $350+ per square foot, depending on the building type, location, number of floors, and finishes.
What is the average cost per apartment unit?
Construction costs can range from approximately $180,000 to $500,000+ per unit, depending on unit size, shared amenities, structural requirements, and project specifications.
How much does a 100-unit apartment complex cost to build?
A 100-unit apartment complex can require approximately $18 million to $60 million+ in construction costs.
Does the construction cost include land?
No, it does not include land. Construction estimates are only about components.